A Small Oklahoma Town Sees Property Values More Than Double Thanks The Legalization Of Cannabis In Oklahoma

Property values in a small Oklahoma town have soared. Experts believe the legalization of marijuana is behind the boom in prices.

Oklahoma legalized Marijuana in 2018. Since then growth within the state surpassed that of traditional wheat and cotton.

Oklahoma has been dubbed the, “Wild West of Weed.”

The state now ranks first in the nation in 2024 for the number of marijuana dispensaries per-capita.

Marijuana demand in the state has created a demand for farm land to farm. As a result, property values reached alarmingly high prices for locals in Okemah. Values have become so high that locals are being priced out of the neighborhoods they grew up in.

Home prices began to skyrocket immediately after voters approved the legalization of medical marijuana in June 2018. 

Cambridge University’s Journal and Agricultural and Applied Economics conducted a study. It found home prices in Oklahoma rose by 25% since 2018. 

Zillow shows some homes are now selling for double their 2018 value.

These increases were also higher than in comparable counties in Kansas or Texas where marijuana is not legal. 

However, The Frontier reported counties with high numbers of dispensaries did not show a similar trend to those with a high number of growers.

Woody Guthrie’s Hometown Is Booming Thanks To Marijuana

Okemah, Oklahoma is a town of just over 3,000 residents. 

Okemah has seen it’s Zillow Home Value index rose from $72,500 in 2018 to a staggering $120,158 by June 2023. 

The number of dispensaries in Oklahoma surpassed 2,000 in early 2020. This is more than double the number in Colorado which legalized marijuana in 2014.

The study also stated that Oklahoma also had the most dispensaries in the country. 

The study pointed out that high-growers are the one responsible for skyrocketing housing prices. This suggests that the marijuana farming industry is primarily responsible for driving up housing values. 

In 2022, Oklahoma created ‘tiers’ of fees for growing facilities. The state wanted to control the amount of growers in the state. As a result, the state increased the fees. They raised them from $2,500 for up to 2.5 acres to $50,000 for between 40 and 50 acres.

A bill was also passed in 2023 also banned foreigners from buying land in Oklahoma farming marijuana.

Yet, it remains a concern that the damage from lack of regulation upon the drugs legalization will be irreversible.

Now, the impacts are seen displayed on the housing market.

Properties valued at around $3,000 an acre sell in 2019, now sell for closer to $10,000 an acre.

Read More About Real Estate Values On MFI-Miami.com