Cannabis retailers found to be more concentrated in disadvantaged neighborhoods

A novel study reveals a significantly higher concentration of recreational (nonmedical) cannabis retailers in socioeconomically disadvantaged areas and neighborhoods with greater proportions of populations of color across 18 US states in which cannabis use is legal for adults. The study, appearing in the American Journal of Preventive Medicine, published by Elsevier, offers critical insights for policymakers and public health officials, underscoring the need for strategies to ensure equitable distribution of cannabis retailers.

Using 2023 US state agency lists, researchers identified 5,586 recreational cannabis retailers and geocoded address data in 18 states with recreational cannabis legalization laws. These states included Alaska, Arizona, California, Colorado, Connecticut, Illinois, Maine, Massachusetts, Michigan, Missouri, Montana, Nevada, New Jersey, New Mexico, Oregon, Rhode Island, Vermont, Washington where recreational cannabis sales were legalized between 2012 and 2022. Multilevel logistic and negative binomial Poisson regression was used to model the relationship between neighborhood deprivation and extreme concentration indices with census tract cannabis retailer presence.

Lead investigator Lindsay L. Kephart, PhD, MPH, Department of Social and Behavioral Sciences, Harvard T.H. Chan School of Public Health, says, "The most significant finding of our study was that cannabis retailers were located in just over 10% of census tracts in legalized states, with the most disadvantaged neighborhoods consistently showing higher cannabis retailer presence. Neighborhoods with high concentrations of low-income Black residents had 2.53 times the number of cannabis retailers compared to high-income, predominantly White neighborhoods, and those with high concentrations of low-income Hispanic residents had 2.67 times the number. This pattern held across different conceptualizations of disadvantage and was observed across 18 states with legalized adult-use cannabis, regardless of US regional location or the timing of legalization."

A well-established body of research shows that tobacco and alcohol retailers are located more often in neighborhoods with higher proportions of lower-income residents and communities of color. With the legalization of adult-use recreational cannabis across a growing number of US states, cannabis has become another product that is legally sold through storefront retailers, much like alcohol and tobacco. Researchers of the current study found that cannabis retailers are following the same distribution patterns.

Dr. Kephart explains, "This kind of spatial patterning may not always be intentional, but it can contribute to disproportionate substance use exposure among communities that are already marginalized—often shaped by historical zoning and land use policies that concentrate undesirable land uses in disadvantaged areas. The persistence of this pattern seems to be driven by structural factors such as Not-In-My-Backyard (NIMBY) policies, which place such businesses away from more privileged communities."

A sensitivity analysis of the data suggested that the relationship between racial disadvantage (independent of income) and cannabis retailer availability was not significant. This implies that socioeconomic factors may be more influential than race alone.

Dr. Kephart adds, "However, neighborhood racial demographics should still be considered, especially when combined with low income, as these neighborhoods with the greater proportions of low-income residents of color had the highest likelihood of cannabis retailers and thus greater cannabis availability."

Cannabis is among the most commonly used drugs in the US, with nearly 19% of people aged 12 or older reporting use in the past year. As of November 2024, 24 US states have legalized the sale of cannabis for recreational adult use.

Dr. Kephart notes, "The growing community presence of recreational cannabis retailers may play a critical role in driving individual cannabis use through pathways such as increased accessibility, lowered perceptions of health risks, and the promotion of novel products that appeal to youth. On the other hand, there may also be benefits such as reduced demand for illicit cannabis, a regulated supply for adult use, and increasing home values."

Existing research suggests a link between recreational cannabis legalization and rising home values, particularly in early-adopting states like Colorado and Washington. While the exact causes are still under study, potential drivers include increased housing demand due to job growth tied to the cannabis industry as well as higher consumer spending that contributes to local economic development. "Legalization may also reduce stigma and concerns about crime, making neighborhoods more appealing. In some communities, tax revenue from cannabis sales is being reinvested into infrastructure and public services, which could potentially drive up property values as areas become more desirable to homebuyers," Dr. Kephart explains.

In conclusion, Dr. Kephart emphasizes, "Evidence-based research can empower communities to make informed decisions about strategies to ensure equitable distribution of cannabis retailers, maintaining a safe and controlled supply for adults. Additionally, it highlights the potential for local policies, such as capping or zoning regulations, to limit exposure near youth."