ATTOM Data Solutions found 45% of opportunity zones saw median-home prices rose by more than the national average of 11.3% annually during Q1 2020.
This is down slightly from the 47% of the opportunity zones that had home prices rise more than the 9.4% average from Q4 2018 to Q4 2019.
Additionally, 78% of opportunity zones had median prices during Q1 2020 that were less than the national average of $265,900. Homes in 36% of opportunity zones saw prices decline or stay the same.
“Home prices in designated opportunity zones around the country keep showing strong gains, tracking the housing market boom now in its ninth year. Nearly half did even better in the first quarter of 2020 than the nation as a whole—a notable trend in some of the country’s most distressed neighborhoods,” said Todd Teta, Chief Product Officer with ATTOM Data Solutions. “As with other recent ATTOM reports, this one needs to be taken in the context of the looming impact of the Coronavirus pandemic, which could cut the legs out from under the housing market. For now, though, home prices are going strong in opportunity zones, which offers significant hope to current and potential homeowners and investors.”
Of the 3,010 opportunity zones in the report, California had the most with 389. Florida came in second at 295; Georgia had 148; Texas had 144; and North Carolina was home to 137 opportunity zones.
Forty-six percent of opportunity zones in the report had a median-home price during Q1 2020 that was $150,000, while 17% had average prices between $150,000 and $199,999.
The midwest had the highest rate of opportunity zones tracts with a median-home price less than $150,000, coming in at 76%. The south had 58% with homes below $150,000, the northeast was home to 45%, and the west had just 11%.
Teta said in a prior report that while home-price growth in opportunity zones is positive, there’s no guarantee they will last.
“These areas are among the most vulnerable to economic downturns,” he said. “As a result, the recent upswing could change on a dime if the broader housing market flattens out or sags.”
He added, “But for now, the price gains are a crucial measure that neighborhoods designated as Opportunity Zone tax breaks hold significant allure for potential residents.”