Those areas are facing headwinds like broader housing market, ATTOM says
Median home prices in more than half of Opportunity Zones continued to rise in the first quarter of 2022 at a pace that mirrors the broader national housing market, a report by real estate data curator ATTOM revealed.
Opportunity Zones are qualified low-income areas targeted for economic redevelopment under the Tax Cuts and Jobs Act of 2017. ATTOM’s Q1 2022 report analyzed 5,092 of these areas across the country based on home sales price data derived from recorded sales deeds.
The report found that median single-family home and condo prices increased from Q4 of 2021 to Q1 of 2022 in 55% of Opportunity Zones. Prices also jumped by at least 20% annually in half of these areas, with gains following similar patterns over the last year.
This shows that while the pace of price increases slowed in Q1 of 2022 compared to peak periods recorded last year, median values still rose more than the 16.6% year-over-year gain nationwide, explained ATTOM.
“Home price trends in Opportunity Zones mirror what we're seeing elsewhere in the housing market,” said Rick Sharga, executive vice president of market intelligence at ATTOM. “Strong price growth has helped homeowners in these economically-challenged areas benefit from higher equity and should contribute to the ongoing redevelopment of these areas.”
Of all 5,092 zones included in ATTOM’s report, 35% still had median prices that were lower than $150,000 and 15% had prices ranging from $150,000 to $199,999. Additionally, 21% of zones saw median values between $200,000 and $299,999, while 24% topped the national median of $320,500.
“With so little entry level inventory on the market, homes in Opportunity Zones represent some of the few remaining affordable options for prospective homebuyers,” Sharga added. “This is especially important for first-time buyers, who typically have to stretch their finances in order to be able to afford a home.”