Median home prices rose in 66 percent of Opportunity Zones nationwide during the fourth quarter, according to an analysis by ATTOM Data Solutions.
In 20 states, year-over-year median price increases in at least half the Opportunity Zones beat the national 9.4 percent average increase. Opportunity Zones are generally lower-income areas designated by Congress to receive tax advantages for certain investments.
“Home prices in thousands of Opportunity-Zone neighborhoods targeted for revival across the United States continued to ride the tide of the national housing market boom in the fourth quarter of 2019, marching along with broad trends and even doing better in many areas,” ATTOM Chief Product Officer Todd Teta said.
“These areas are among the most vulnerable to economic downturns. As a result, the recent upswing could change on a dime if the broader housing market flattens out or sags,” Teta said. “But for now, the price gains are a crucial measure that neighborhoods designated as Opportunity Zone tax breaks hold significant allure for potential residents.”
Of the zones analyzed, 1,776 (48 percent) had a median price of less than $150,000 in the fourth quarter of 2019 and 594 (16 percent) had medians ranging from $150,000 to $199,999. Another 529 (14 percent) ranged from $200,000 up to the national median price of $257,000, while 817 (22 percent) were more than $257,000.
ATTOM’s analysis found the Midwest had the highest rate of Opportunity Zone tracts with a median home price of less than $150,000 (73 percent); followed by the South (58 percent); the Northeast (51 percent); and the West (12 percent).
States with the highest percentage of census tracts meeting Opportunity Zone requirements were Wyoming (17 percent); Mississippi (15 percent); Alabama (13 percent); North Dakota (12 percent); and New Mexico (12 percent).