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Classified in: Science and technology, Business
Subject: SVY

OPPORTUNITY ZONE HOME PRICES MIXED BUT STILL KEEPING UP WITH NATIONWIDE PRICE TRENDS


Median Home Values Rise During First Quarter of 2024 in Only Half of Opportunity Zones Targeted for Economic Redevelopment Around U.S.; But Price Trends Inside Zones Again Reflect National Market Patterns; By Some Measures, Opportunity Zone Changes Surpass Nationwide Gains

IRVINE, Calif., May 23, 2024 /PRNewswire/ -- ATTOM, a leading curator of land, property, and real estate data, today released its first-quarter 2024 report analyzing qualified low-income Opportunity Zones targeted by Congress for economic redevelopment in the Tax Cuts and Jobs Act of 2017 (see full methodology below). In this report, ATTOM looked at 3,512 zones around the United States with sufficient data to analyze, meaning they had at least five home sales in the first quarter of 2024.

The report found that median single-family home and condo prices increased from the fourth quarter of 2023 to the first quarter of 2024 in just 49 percent of Opportunity Zones around the country. But they were still up annually in almost two-thirds of Opportunity Zones with enough data to measure.

Those trends, in and around low-income neighborhoods where the federal government offers tax breaks to spur economic revival, continued a long-term pattern of home values inside Opportunity Zones moving alongside broader nationwide shifts for at least the last three years.

The mixed first-quarter price patterns hit harder in the very lowest-priced areas, with declining values posing a warning sign in those markets. Nevertheless, the overall picture inside Opportunity Zones revealed ongoing measures of economic strength, or limited weakness, inside some of the country's most distressed communities compared to other markets around the country. That scenario has remained in place even as a decade-long housing market boom has slowed in Opportunity Zones and elsewhere, with relatively modest price increases over the past year.

By one key measure, Opportunity Zones price trends even showed continued signs again of doing somewhat better than the nation as a whole during the early months of 2024. For example, changes in typical home values across more than half of Opportunity Zones were better than nationwide price movements both quarterly and annually.

"Another quarter, same result. That's the takeaway yet again inside Opportunity Zones around the U.S., where home prices still lag far behind national numbers, but gains and losses mostly keep tracking overall market patterns," said Rob Barber, CEO for ATTOM. "Clearly, there are exceptions, especially at the lowest end of the price scale. Nevertheless, the latest data shows Opportunity Zone housing markets continuing to attract considerable interest among home buyers pushed out of higher-priced areas in a market with very limited supplies of homes for sale. That again points to the kind of economic viability needed to lure investors who may want to take advantage of the redevelopment incentives aimed at revitalizing those communities."

Opportunity Zones are defined in the Tax Act legislation as census tracts in or alongside low-income neighborhoods that meet various criteria for redevelopment in all 50 states, the District of Columbia and U.S. territories. Census tracts, as defined by the U.S. Census Bureau, cover areas that have 1,200 to 8,000 residents, with an average of about 4,000 people.

Amid economic limitations, most Opportunity Zones again had typical home values that fell well below those in other markets around the nation in the first quarter of 2024. Median first-quarter prices inside 78 percent of the zones were less the U.S. median of $330,000. That was about the same portion as in earlier periods over the past three years. In addition, median prices remained under $200,000 in about half the zones.

High-level findings from the report:

Report methodology
The ATTOM Opportunity Zones analysis is based on home sales price data derived from recorded sales deeds. Statistics for previous quarters are revised when each new report is issued as more deed data becomes available. ATTOM's analysis compared median home prices in census tracts designated as Opportunity Zones by the Internal Revenue Service. Except where noted, tracts were used for the analysis if they had at least five sales in the first quarter of 2024. Median household income data for tracts and counties comes from surveys taken the U.S. Census Bureau (www.census.gov) from 2018 through 2022. The list of designated Qualified Opportunity Zones is located at U.S. Department of the Treasury. Regions are based on designations by the Census Bureau. Hawaii and Alaska, which the bureau designates as part of the Pacific region, were included in the West region for this report.

About ATTOM
ATTOM provides premium property data to power products that improve transparency, innovation, efficiency, and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes, and enhances the real estate data collected by ATTOM, assigning each property record with a persistent, unique ID ? the ATTOM ID. The 30TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include ATTOM Cloud, bulk file licenses, property data APIs, real estate market trends, property navigator and more. Also, introducing our newest innovative solution, making property data more readily accessible and optimized for AI applications? AI-Ready Solutions.

Media Contact:
Megan Hunt
[email protected]

Data and Report Licensing:
[email protected]

SOURCE ATTOM


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