ATTOM has published its analysis of qualified low-income Opportunity Zones, which were designated by Congress for economic revitalization through the Tax Cuts and Jobs Act of 2017. These zones, as defined in the legislation, encompass census tracts located in or adjacent to low-income communities that fulfill specific criteria for redevelopment across all 50 states, the District of Columbia, and U.S. territories.
According to the latest report, approximately 52% of Opportunity Zones across the country experienced either stable or decreased median prices for single-family homes and condos between Q4 of 2022 and Q1 of 2023. In nearly half of these zones, prices dropped by at least 3%. Conversely, around 40% of the markets saw an increase of at least that magnitude.
These diverse trends closely mirrored the patterns observed in neighborhoods outside the Opportunity Zones. The national housing market, which had enjoyed nearly uninterrupted growth for a decade, experienced a slowdown starting in the latter half of 2022. This deceleration continued into 2023.
Based on a significant indicator, Opportunity Zone markets demonstrated relatively better resilience compared to other neighborhoods across the country in Q1 of 2023. In these areas, median prices were more frequently elevated compared to the point in time when the overall U.S. market started to level off last year.
Similar to previous periods, the average home values in Opportunity Zones remained significantly lower than those in the majority of neighborhoods across the nation in the first quarter of 2023. In approximately 79% of Opportunity Zones, the median prices during Q1 were below the U.S. median of $321,135, which is consistent with earlier periods throughout the past year. Furthermore, in 55% of the analyzed zones during Q1 of 2023, median prices remained below $200,000.