Cannabis Dispensaries Were More Likely Located in Neighborhoods With Higher Black and Hispanic Populations | Research

The takeaway

A national analysis found cannabis dispensaries were disproportionately located in census tracts with higher percentages of Black residents, Hispanic residents, and people living below the poverty line.

Policymakers designing cannabis zoning regulations and communities affected by dispensary placement decisions.

Neighborhoods with the most Black residents had 2.07x odds of having a dispensary; highest homeownership areas had 0.21x odds

What the researchers found

Census tracts with the highest percentage of Black residents had 2.07 times the odds of having a dispensary compared to those with the lowest. Similar patterns emerged for Hispanic/Latine residents and poverty levels. In contrast, areas with the most homeowner-occupied housing had only 0.21 times the odds of having a dispensary. These patterns held across all 18 states analyzed.

Why it matters

Cannabis legalization was partly intended to address racial disparities from prohibition. This finding that dispensaries cluster in minority and low-income neighborhoods raises questions about whether the commercial cannabis market is replicating rather than correcting existing inequities.

The numbers in context

3,167 dispensaries across 18 states. Highest vs lowest Black population quintile: OR=2.07 (95% CI: 1.70-2.52). Highest vs lowest homeownership quintile: OR=0.21 (95% CI: 0.17-0.26). Similar patterns for Hispanic/Latine population and poverty levels.

How the study worked

National analysis using dispensary locations from Weedmaps (November 2021, N=3,167) merged with US Census sociodemographic data for 18 states with legal recreational cannabis. Census tracts were categorized into quintiles, and generalized linear mixed models examined associations with dispensary presence.

What this study cannot tell us

Weedmaps may not capture all dispensaries. Cross-sectional November 2021 snapshot may not reflect current distribution. Census tract-level analysis cannot capture within-tract variation. Does not measure whether dispensary proximity affects use patterns.

How to read the evidence

Moderate: national dataset with 18 states and robust statistical modeling, though cross-sectional and limited by Weedmaps data completeness.

When this study was published

2025 study using November 2021 data.

The bigger picture

This mirrors patterns seen with alcohol outlets and tobacco retailers, which are also disproportionately located in minority and low-income neighborhoods. As cannabis retail expands, these disparities could contribute to unequal health outcomes across communities.

Questions still open

Are local zoning laws driving dispensary placement toward minority neighborhoods? Does dispensary proximity increase problematic use in these communities? Should cannabis licensing include equity considerations for dispensary placement?

Common questions

Why are dispensaries more common in minority neighborhoods?

The study did not determine causation but suggests zoning laws, commercial real estate patterns, and lower community opposition in some areas may contribute. The pattern mirrors alcohol and tobacco retail disparities.

Does having a dispensary nearby increase cannabis use?

This study did not measure use patterns, only dispensary location. Previous research suggests availability can influence use, but the relationship is complex and varies by community.

Read the original research

Neighborhood Sociodemographic Correlates of Cannabis Dispensary Availability in States with Legalized Adult Recreational Use, United States, 2021.

Cannabis and cannabinoid research, 10(6), 739-745

View on PubMed ↗Publisher’s paper ↗

Citation

Lowery, Bryce C; Swayne, Madison R E; Kong, Amanda Y. (2025). Neighborhood Sociodemographic Correlates of Cannabis Dispensary Availability in States with Legalized Adult Recreational Use, United States, 2021.. Cannabis and cannabinoid research, 10(6), 739-745. https://doi.org/10.1089/can.2024.0065