Exploring the quantitative impact of medical marijuana dispensaries on residential sale prices in Oklahoma

Abstract Medical marijuana was legalized in Oklahoma as recently as 2018, and since then Oklahoma has rapidly grown to have the largest number of medical marijuana dispensaries of any states in the USA. What have been the impacts of this rapid proliferation of legalized medical marijuana? We use a hedonic pricing model to assess how legalized marijuana dispensary activity (both distance to the nearest dispensary and the number of nearby dispensaries) has impacted residential property values. The dataset spans six different counties from across the State of Oklahoma, and we explore a variety of different regression specifications to rigorously explore the effects of dispensary activity on local residents. While we find evidence of some heterogeneity in the dispensary effects, one broad finding is that residents prefer not to live in immediate proximity to a dispensary but prefer access to dispensaries moderately distanced from their home. Understanding these broad trends and the localized heterogeneity in effects are important for residents and policymakers alike in Oklahoma and in other states that may be considering similar legislation.