Cities, states grappling with cannabis dispensary oversaturation

Deeply blue cities Santa Fe, New Mexico and Missoula, Montana are about the same population. 

New Mexico's capital city ranks exceptionally high for cannabis retail density, with roughly 43 to 45 active licensed dispensaries serving a population of about 89,000 residents. This translates to an estimated 48 to 50 dispensaries per 100,000 residents, or roughly 1 shop for every 2,000 people. A year ago the NM cannabis excise tax reached 13% and will increase 1% each year until July 2030 when it will hit 18% as set in state statute. On Tuesday an interested party paid $65 in Santa Fe for an ounce of flower containing almost 31% THC as competition weeds out the weak. 

Missoula also maintains one of the highest concentrations of cannabis dispensaries per capita in the United States, peaking at a reported 30.7 dispensaries per 50,000 residents. State statistics confirm there are 54 active dispensaries operating within Missoula city limits. In February the city council mandated that any new dispensary be at least 1,000 feet away from another dispensary keeping additional location restrictions in place but assured that existing dispensaries are grandfathered in under the new rules. But just recently, Missoula chose to enact a prohibition on new cannabis licenses to address a range of concerns while public health officials suggest that the city should have no more than twelve dispensaries based on current population.

They've taken over former sandwich shops, coffee shops and other small retail outlets in nearly all corners of Missoula. [Missoula Current]

Signed into law by Governor Tina Kotek in March 2024 after lawmakers passed House Bill 4121 the state established a strict, permanent population-based cap on new cannabis licenses or a maximum of one license per 7,500 residents.