Investors are seeing home prices rise in Opportunity Zones, according to the new Q3 2019 Opportunity Zones Report from ATTOM Data Solutions. The report found that about half the zones saw median home prices rise more than the national increase of 8.3% from the third Q3 2018 to the Q3 2019.
The report also shows that 79% of the zones had median home prices in the third quarter of 2019 that were less than the national median of $270,000—almost the same percentage as in the second quarter of 2019. Some 46% of the zones had median prices of less than $150,000, also roughly the same as in the prior quarter.
“The nationwide home-price surge in the third quarter spread through so-called Opportunity Zones, much as it did the rest of the country,” said Todd Teta, chief product officer with ATTOM Data Solutions. “Despite sitting in some of the nation’s poorest areas, Opportunity Zones were hardly immune from a housing boom heading into its ninth year. That’s encouraging news for people living in those communities as well as investors looking to take advantage of the Opportunity Zones program.”
Among the 3,658 Opportunity Zones with sufficient data to analyze, median prices rose in 48% of the zoned areas by more than the national rate of gain from Q3 2018 to Q3 2019. The national year-over-year increase was 8.3%.
Among the 3,658 Opportunity Zones with sufficient data to analyze, California had the most Opportunity Zones, with 477, followed by Florida (332), Texas (293), Pennsylvania (176) and North Carolina (170). Of the tracts analyzed, 46% had a median price in the third quarter of 2019 of less than $150,000 and 17% ranged from $150,000 to $199,999. Another 16% ranged from $200,000 up to the national median of $270,000, 21% were more than $270,000. All percentages were similar to those in the second quarter of 2019.
The Midwest continued to have the highest rate of Opportunity Zone tracts with a median home price of less than $150,000 (71%), followed by the South (56%), the Northeast (47%) and the West (12%).