Median Home Values Increase in More Than Half
of Opportunity Zones Targeted for Economic Redevelopment;
Price Trends Inside Those Zones Continue to Closely Follow
National Market Patterns; Some Measures in Opportunity Zones
Again Outpace Nationwide Improvements
IRVINE,
Calif., Aug. 8, 2024 /PRNewswire/ -- ATTOM, a
leading curator of land, property, and real estate data, today
released its second-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 3,904 zones
around the United States with
sufficient data to analyze, meaning they had at least five home
sales in the second quarter of 2024.
The report found that median single-family home and condo prices
increased from the first quarter of 2024 to the second quarter of
2024 in 61 percent of Opportunity Zones around the country with
enough data to measure. They were up annually in 62 percent of the
zones analyzed.
Amid a nationwide price surge during the annual Springtime home
buying season, median prices inside nearly half of the zones
analyzed shot up more than 10 percent quarterly and annually.
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 parallel to broader nationwide shifts for at least the
last three years. That pattern has remained in place regardless of
whether prices have surged, grown modestly or ticked downward.
The second-quarter price spikes were mixed, raising fortunes
more so in higher-priced Opportunity Zones, while benefiting fewer
of the very lowest-priced neighborhoods. Nevertheless, the broad
picture remained one of ongoing economic strength, or limited
weakness, inside some of the country's most distressed communities
compared to other markets around the country.
By a few measures, Opportunity Zones price trends even showed
signs, yet again, of doing somewhat better than the nation as a
whole during the second quarter of 2024. For example, increases in
median home-values outpaced national gains in a slightly larger
portion of zones than elsewhere.
"The trickle-down impact of the extended housing market boom
across the U.S. continues to uplift many neighborhoods in need,
revealing their economic potential," said Rob Barber, CEO of ATTOM. "This pattern is
especially evident in Opportunity Zones as house hunters priced out
of more-expensive areas turn to places they can afford. While gains
inside these zones vary, many are experiencing price increases,
demonstrating the momentum necessary to attract the investments
that the Opportunity Zone model is designed to generate."
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 still had
typical home values that fell well below those in other markets
around the nation in the second quarter of 2024. Median
second-quarter prices inside 80 percent of the zones were less the
U.S. median of $365,000. That was
about the same portion as in earlier periods over the past three
years. In addition, median prices remained under $200,000 in almost half the zones.
High-level findings from the report:
- Median prices of single-family homes and condos increased from
the first to the second quarter of 2024 in 1,932 (61 percent) of
the Opportunity Zones around the U.S. with sufficient data to
analyze, while staying the same or decreasing in 39 percent.
Measured annually, medians remained up from the second quarter of
2023 to the same period this year in 2,140 (62 percent) of those
zones. (Among the 3,904 Opportunity Zones included in the report,
3,185 had enough data to generate usable median-price comparisons
from the first to the second quarter of 2024; 3,456 had enough data
to make comparisons between the second quarter of 2023 and the
second quarter of 2024).
- Opportunity Zones did even better than the rest of the nation
when comparing price changes to shifts in the national median home
price. Median values in 45 percent of Opportunity Zones went up
from the first to the second quarter of this year by more than the
9 percent annual gain nationwide. The same was true in slightly
less - 41 percent - of local housing markets outside the zones. (A
similar pattern emerged when comparing shifts in prices
annually.)
- However, median prices were up quarterly and annually in only
about 45 percent of Opportunity Zones where homes commonly sold for
less than $125,000 during the second
quarter of 2024. Prices climbed during that time frame in 60
percent to 66 percent of zones with higher home values.
- Among states that had at least 25 Opportunity Zones with enough
data to analyze during the second quarter of 2024, the largest
portions of zones where median prices increased quarterly were in
Massachusetts (medians up from the
first to the second quarter of 2024 in 73 percent of zones),
Maryland (68 percent),
Oregon (68 percent), New York (67 percent) and Virginia (65 percent). States where prices
were up quarterly in the smallest portion of zones included
Georgia (median prices up in 50
percent of zones), Louisiana (53
percent), Minnesota (56 percent),
Kentucky (56 percent) and
California (56 percent).
- States where median home values in Opportunity Zones remained
up most often year over year included New
Jersey (median prices up annually in 81 percent of zones),
Nevada (79 percent), Ohio (73 percent), New Mexico (69 percent) and Virginia (69 percent).
- Of the 3,904 zones in the report, 1,148 (29 percent) had median
prices below $150,000 in the second
quarter of 2024. That was down from 34 percent of zones with
sufficient data a year earlier and almost 60 percent five years
ago. Another 647 zones (17 percent) had medians in the second
quarter of this year ranging from $150,000 to $199,999.
- Median values in the second quarter of 2024 ranged from
$200,000 to $299,999 in 23 percent of Opportunity Zones,
while they topped the nationwide second-quarter median of
$365,000 in just 20 percent.
- The Midwest continued in the second quarter of 2024 to have
larger portions of the lowest-priced Opportunity Zone tracts.
Median home prices were less than $175,000 in 61 percent of zones in the Midwest,
followed by the Northeast (41 percent), the South (39 percent) and
the West (5 percent).
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 second 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
megan.hunt@attomdata.com
Data and Report
Licensing:
datareports@attomdata.com
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