Real estate rates rise everywhere in states where cannabis is legal
Leading Economist Says America's Hottest Real Estate Markets Have Something Unique in Common ... Could Marijuana Be Responsible for Rising Real Estate Rates?
In an interview with Jonathan Roth of RiskHedge, Barry Habib, the founder and CEO of MBS Highway, discusses the impact of rising interest rates on the US real estate market. In addition, he claims a real estate boom in all states where pot is legal ...
“I don't know what is the reason,” says Habib, “but wherever marijuana is legal all of these markets are on fire… Seattle, Portland, and Denver are where these markets are hottest. ! "
Recently awarded the Zillow Crystal Ball Prize for his record of property forecasting, Habib is not ashamed to discuss ideas that have yet to hit the mainstream. Despite the anticipation of the markets, and the fact that interest rates will rise slowly over time. Habib establishes a realistic scenario where rates could actually fall ...
“If the Fed gets too aggressive in rates… and they start draining money out of the stock market, interest rates could actually go down,” Habib said.
Denver City Industrial Real Estate Boom
For example, the legalization of the sale of cannabis for "recreational" purposes in the US state of Colorado triggered an industrial real estate boom in the city of Denver in 2014. Indeed, consumption and sale of cannabis for "recreational" purposes are legal in the US state of Colorado. A decision that generated a real real estate boom in the city of Denver. The vacancy rate of industrial sites was "abnormally low at 3,1%".
Industrial housing is now rented five times more expensive than in 2009. Thus, the rental price has increased by 21% in 2014. The facts are reported by Colliers International, the state real estate firm.