Census tracts with higher socioeconomic deprivation and greater concentrations of low-income Black or Hispanic residents had 2.0-2.5 times the odds of having a cannabis retailer.
Cannabis equity advocates, policymakers, urban planners, public health researchers
2.0-2.5x higher odds of retailers in most disadvantaged tracts
What the researchers found
Across 18 legalized states, 11% of census tracts had at least one recreational cannabis retailer. Tracts with the greatest concentration of low-income Black or Hispanic residents had 2.0-2.5 times the odds of retailer presence compared to more advantaged tracts, even after adjustment.
Why it matters
Cannabis legalization was partly justified by reducing racial disparities in enforcement. If retailers then cluster in disadvantaged communities of color, it raises questions about whether legalization is replicating existing patterns of unequal exposure to substance retail.
The numbers in context
5,586 retailers across 18 states; 11% of census tracts had at least 1 retailer; 2.0-2.5x higher odds in most disadvantaged tracts.
How the study worked
Cross-sectional analysis of 5,586 geocoded recreational cannabis retailers from 2023 state agency lists across 18 states. Used multilevel logistic and negative binomial regression with neighborhood deprivation index and index of concentration at the extremes.
What this study cannot tell us
Cross-sectional design captures a single point in time as markets are still maturing. Cannot determine causation or direction of effects. State-level variation in licensing and zoning rules not fully accounted for.
How to read the evidence
Large cross-sectional analysis using validated deprivation indices across 18 states, though causal inference is limited.
When this study was published
2025 publication with 2023 retailer data
The bigger picture
This pattern mirrors historical patterns with alcohol and tobacco retailers. Equity provisions in cannabis legislation were meant to address this, but retail clustering in disadvantaged areas suggests market forces may override policy intentions.
Questions still open
- Are equity-focused cannabis licensing policies effectively preventing retailer clustering in disadvantaged areas?
- Does cannabis retail density in a neighborhood affect local consumption patterns?
Common questions
Are cannabis stores more common in low-income neighborhoods?
Does cannabis retail location affect racial equity?
Read the original research
The Unequal Geography of Recreational Cannabis Retailers in the U.S.
American journal of preventive medicine, 69(2), 107643
Citation
Kephart, Lindsay L; Rees, Vaughan W; Giovenco, Daniel P; Subramanian, Sankaran V. (2025). The Unequal Geography of Recreational Cannabis Retailers in the U.S.. American journal of preventive medicine, 69(2), 107643. https://doi.org/10.1016/j.amepre.2025.107643