Cannabis industry contributed to spike in home prices, housing shortages: survey

Cannabis industry contributed to spike in home prices, housing shortages: survey

Canada’s booming cannabis industry has led to a spike in housing prices and home shortages in some regions, according to a new report from RE/MAX. For example, Smiths Falls, Ont. — home to Canopy Growth, which Bloomberg dubbed the largest cannabis producer in the world — now employs 1,300 people. An unintended consequence of that employment growth is a shortage of available homes. RE/MAX states the surrounding Rideau-St. Lawrence region is in the midst of a housing shortage because of high demand. Home sales rose by 27.1 per cent year-over-year with average prices going up by 10.5 per cent. “I think the real story is that the cannabis industry is creating jobs and demand in the (housing) market,” Christopher Alexander, RE/MAX executive vice-president of the Ontario and Atlantic region told CTVNews.ca in a phone interview. But Smiths Falls is simply part of a larger boom. The report explains that “this trend is more pronounced in Eastern Canada, where there’s a greater number of large-scale cannabis producers.” Atlantic Canada, where these new operations have been setting up, has been experiencing an “economic renaissance,” the real estate company said. In cities like Wentworth, N.S. — which houses the Breathing Green Solutions facility — new and active listings are down and months of inventory dropped from 45 in 2018 to nine in 2019, according to the Nova Scotia Association of Realtors. The city’s September home sales have jumped exponentially year-over-year. One province over, in Atholville, N.B., which is home to Zenabis Global Inc.’s 420-person operation, the real estate market is similarly seeing a boom. Big producers have biggest effect on real estate But RE/MAX is seeing similar spikes in other markets further west such as Ontario’s Windsor-Essex area, where cannabis producer Aphia has set up a 1,000-employee facility in Leamington, Ont. In this…

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