Oklahoma’s legalization of medical marijuana has contributed to a sharp rise in housing prices, especially in rural areas, according to a new study published in the Journal of Agricultural and Applied Economics.
(Photo credit: Camoin Associates).
The study, led by researchers at Oklahoma State University, found that counties with a high concentration of licensed marijuana grow operations saw housing prices climb by 20% to 25% over a five-year period—far outpacing comparable counties in neighboring states where marijuana remains illegal. In contrast, counties with large numbers of dispensaries but fewer grow operations did not see the same increases.
The findings stem in part from a September 2023 community meeting in Okemah, a small city in Okfuskee County. Residents there raised concerns about rapidly rising property prices, attributing the trend to a flood of out-of-state growers making aggressive real estate purchases following the 2018 vote to legalize medical marijuana.
“We didn’t expect to see a big impact on the housing values,” said study coauthor and OSU professor Brian Whitacre. “But when we went to Okemah, people were telling us they can’t afford to buy a house in the place where they grew up.”
Okemah Mayor Ron Gott echoed the findings, pointing to foreign buyers—including some from China—paying inflated prices for land to grow marijuana. He said some properties that would have sold for $3,000 per acre were instead purchased for up to $10,000 per acre.
Home values in Okfuskee County jumped from $72,500 in 2018 to over $120,000 by mid-2023, according to Zillow data adjusted for inflation.
While the rise in land and home prices has made it harder for local residents to buy property, many community members also recognized the industry’s benefits. According to Whitacre, residents at the meeting voiced general support for the marijuana industry and held positive views of local dispensaries. Several dispensary owners attended the meeting and were reportedly well-regarded by attendees.
Still, the influx of cultivators has had a pronounced effect on the local real estate market. By 2021, marijuana grow operations in Oklahoma outnumbered the state’s traditional wheat and cotton farms. The state also ranked first nationwide for marijuana dispensaries per capita in 2024.
Longtime Okemah real estate agent Carl Alls said marijuana grows likely contributed to the spike in housing costs, but he noted that rising prices for lumber and construction materials also played a role.
“The prices were going up anyhow,” Alls said. “I’m seeing homes selling for more than they did, and all of that has more to do with the price of lumber than these grows.”
In recent years, Oklahoma has taken steps to crack down on illegal marijuana operations. Many smaller cultivators in Okfuskee County have since gone out of business, contributing to a decline in active grows across the region.
