Single-family home and condo prices increased from the second quarter of 2021 to the third quarter of 2021 in 62% of Opportunity Zones around the country. In 47% of the areas, prices rose by at least 20% annually, according to ATTOM’s third-quarter 2021 special report analyzing qualified low-income Opportunity Zones established by Congress in the Tax Cuts and Jobs Act of 2017.
“The third quarter of 2021 was just like the second, which was pretty much like the first when it came to home prices in some of the more distressed neighborhoods around the United States. Values in markets scattered through so-called Opportunity Zones kept rising at around the same pace seen in more upscale areas, as the housing-market boom kept lifting fortunes just about everywhere,” said Todd Teta, chief product officer with ATTOM. “Home values in Opportunity Zones are still very low relative to other areas. But the ongoing gains showed that lots of households are buying in those areas – something that should lure the attention of investors looking to take advantage of Opportunity Zone tax breaks.”
In its report, ATTOM looked at 5,402 zones around the United States with at least five home sales in the third quarter of 2021.
Prices spiked by at least 25% in the third quarter, measured year over year, in four of every 10 Opportunity Zones, compared to three of every 10 communities in the rest of the country.
Home values in most Opportunity Zones did again trail well behind values in most other neighborhoods around the U.S. in the third quarter of 2021.
About three-quarters of zones with enough data to analyze had typical third-quarter prices below the national median of $310,500. That was about the same as in earlier periods over the past year.
Median values also remained under $200,000 in 53% of Opportunity Zones in the third quarter of this year. But that was down from 57% in the second quarter of 2021 and 63% a year earlier.
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