As Canada nears recreational legalization, Canadian cannabis consumers that don't want to buy product through the government or through licensed producers like Aurora Cannabis Inc. (TSX:ACB) (OTC:ACBFF) were hopeful that they could grow it at home.
Under Bill C-45, the bill to legalize adult-use marijuana in Canada, Canadians will be allowed to grow up to four marijuana plants in their home at a time. The Canadian Real Estate Association, a.k.a. "CREA", doesn't like this at all. The potential cannabis yields from four plants at a time year round could "damage property, endanger at-risk populations and increase housing costs, especially for lower income Canadians.”
Recently, CREA announced that it is pushing forth an amendment to Canadian Bill C-45 that would result in a ban on at-home cultivation of marijuana until the government can fully determine the rules and regulations for the entire country.
The suggested moratorium would stop home grows until each of the individual provinces have time to enact their own rules and regulations. The proposal also suggests that Ottawa provides the provinces with guidance on how to cultivate cannabis at home safely.
“We know fire chiefs are concerned about fires; police organizations are concerned with increased crime; municipalities have concerns about safety and cost; health authorities are concerned about vulnerable people exposed to fungus and mold," commented Michael Bourque, CEO of the Canadian Real Estate Association.
Representing over 125,000 real estate agents and brokers, CREA is primarilly concerned with how these legislative changes could affect home sale prices and liquidity.
"Damaged homes sell for less and take longer to sell," noted Massachusetts-based real estate sales specialist Susan Ellman. "As at-home cultivation has been legalized in Massachusetts for some time now, I've seen more than my fair share of destroyed basements."
As an aside, Ms. Ellman noted that the marijuana legalization phenomenon did in fact increase residential as well as retail and industrial real estate demand in certain regions as West Coast cultivators and dispensary operators moved East to take advantage of new opportunities.
This move by CREA is a windfall for Canadian Licensed Producers under ACMPR. With home grows off the table, cannabis consumers will have nowhere else to go.
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