Home Values in Opportunity Zones Continue to Rise

Home prices continue to rise in "opportunity zones," or low-income areas designated for economic redevelopment under the 2017 Tax Cuts and Jobs Act. According to a recent report from property data provider ATTOM, home prices rose in 49% of these areas from Q3 to Q4 2024 and increased annually in 61% of them. Nearly half of the zones saw home prices grow by over 10% year-over-year. With home prices rising across the nation, these increases in opportunity zones mirrors broader housing market trends. In general, property values in opportunity zones have closely followed national price shifts over the past three years.

Despite overall upswings inside Opportunity Zone markets, the fourth-quarter trends again were mixed, with typical values rising more in higher-priced zones than in the very lowest-priced neighborhoods. That continued to reveal how the very bottom of the U.S. housing market is benefitting less from the national run of price increases, and could be more vulnerable if the broader market surge levels off or reverses.

Nevertheless, the latest patterns mark yet another sign that some of the most distressed communities in the nation are showing economic strength, or limited weakness, compared to other markets around the country. Read more