Disproportionate Presence of Cannabis Retailers in Economically Disadvantaged Neighborhoods

A recent study published in the American Journal of Preventive Medicine highlights a notable trend: recreational cannabis stores are predominantly located in socioeconomically disadvantaged areas and neighborhoods with higher populations of racial minorities in 18 U.S. states where adult-use cannabis is legal. Researchers analyzed geocoded data from state licensing lists, identifying over 5,500 retailers across states like California, Colorado, Illinois, and Washington, among others, that have legalized recreational cannabis from 2012 to 2022.

The study employed advanced statistical models to explore how neighborhood deprivation correlates with cannabis retailer density. Findings reveal that cannabis outlets were present in just over 10% of census tracts within these states, with a disproportionately higher concentration in low-income areas. Specifically, neighborhoods with high numbers of Black residents had 2.53 times more retail outlets compared to wealthier, predominantly white areas, while Hispanic-majority neighborhoods showed a 2.67-fold increase.

Lead researcher Dr. Lindsay L. Kephart from Harvard T.H. Chan School of Public Health explained that structural factors, such as zoning policies and NIMBY (Not-In-My-Backyard) attitudes, may unintentionally drive these disparities. She emphasized that although racial and income disadvantages are interconnected, socioeconomic factors might play a more significant role in determining retail location patterns.

This distribution pattern is consistent with trends seen with tobacco and alcohol retailers, which tend to cluster in lower-income and minority communities. The implications of such spatial patterns include increased exposure to cannabis and related harms among marginalized populations, potentially perpetuating health disparities. Dr. Kephart noted that these patterns are typically shaped by historical land use policies and land zoning, rather than deliberate targeting.

The study underscores the importance of considering socio-economic and racial demographics when crafting policies for cannabis retail licensing. While some benefits of legalization—like reduced illicit sales and economic growth—are promising, it is crucial to ensure equitable access and minimize disproportionate impacts on vulnerable communities. Regulations such as zoning limits and retail caps could help mitigate these disparities.

Furthermore, the increasing availability of legal cannabis is associated with broader community effects, including rising property values and economic development in early-adopting states like Colorado and Washington. However, the potential for increased substance use through greater accessibility and changing perceptions remains a concern that warrants ongoing attention.

In summary, this research emphasizes that current patterns of cannabis retail distribution in legalized states tend to favor disadvantaged neighborhoods, raising important questions about equity, public health, and regulatory strategies to promote fair and health-conscious legalization frameworks.

Source: https://medicalxpress.com/news/2025-06-higher-cannabis-retailers-income-neighborhoods.html