P
roperty values in Okemah, Oklahoma have skyrocketed since the legalization of marijuana in 2018. The town's proximity to large-scale grows has driven up demand for land, making it difficult for locals to afford homes in their own neighborhoods. A study published by Cambridge University found that house prices rose by 20-25% over five years after legalization, with some homes now selling for double their pre-legalization value.

    The study's authors were surprised by the general support for the marijuana industry among Okemah residents, who saw dispensaries as a positive force in the community. However, researchers noted that counties with high numbers of grows did not show similar trends to those with high numbers of dispensaries. This suggests that the marijuana farming industry is primarily responsible for driving up local housing values.

    In Okfuskee County, where Okemah is located, the inflation-adjusted Zillow Home Value index rose from $72,500 at the time of legalization to $120,158 by June 2023. Had medical marijuana not been legalized in the area, the index was estimated at $96,125.

    Local officials have proposed policy changes to address concerns about outside speculators driving up property prices and taxes. However, loopholes in current regulations allow growers to use "straw" or "ghost" owners to circumvent ownership requirements. A 2022 law created tiers of fees for growing facilities, but it remains unclear whether this will effectively control the number of growers in the state.

    The impacts of marijuana legalization on housing prices are now being felt across Okemah, with some homes selling for exorbitant prices. For example, a four-bedroom home that was valued at $99,500 in 2018 is currently listed for $198,000. Another property, a two-bed home worth $55,300 in 2018, is now listed for $189,000 and comes with a convenience store.

    Okemah Mayor Ron Gott attributes the area's broader house and land price increase to buyers searching for marijuana farming land, often paying far more than market value. Local buyers are struggling to keep up with these prices, which have been driven up by foreign investors, including those from China.