“No drugs in my back yard:” The ambivalent reception of cannabis retailers

Can individuals’ aversion to drug markets curb the benefits of decriminalization? We investigate effect two policies on housing demand in Netherlands: distance-to-school criterion, which closed some cannabis shops a few cities; and zero-tolerance policy, banned within municipal jurisdictions. While small increase distance retailers raised house prices by 1–5%, substantial reduced them 1–6%. Both property crime, but was also related fewer jobs. Our findings reveal that cities benefit from having shops, households’ nuisances depreciates surrounding areas.