Home prices in many designated Opportunity Zones are rising in line with home prices in the broader market but, as always with real estate, it’s a matter of location, location, location.
A new report from ATTOM highlighted the levels of distress in such zones. “Median household incomes in 86 percent of the Opportunity Zones analyzed were less than the medians in the counties where they were located. Median incomes were less than three-quarters of county-level figures in 52 percent of those zones and less than half in 13 percent.”
Nevertheless, the national trend of rising home prices impacted many of these zones as well.
Recommended For You
The report found that between the third and fourth quarters of 2024, single-family home and condo prices rose in 49% of QOZs analyzed. Prices were up year-over-year in 61% of those zones, consistent with the spike in home prices that is occurring nationwide. The report is based on an analysis of 3,783 QOZs nationwide that had at least five home sales in 4Q 2024.
In almost half of them, median home prices rose more than 10% annually. However, the degree by which prices increased varied according to the property location – whether in a higher-priced zone or in vulnerable ones at the lowest price levels.
In QOZs where homes sold for less than $125,000 in 4Q 2024, only 47% of homes experienced higher prices. The Midwest was especially affected, with 59% of zones there showing median home prices below $175,000. The South followed with 42%, the Northeast with 41%, and the West with just 5%.
In 60% to 70% of QOZs with more expensive homes, prices climbed. States with the largest portion of zones that saw median price increases in 4Q 2024 were Indiana, Missouri, Wisconsin, Kentucky and New Jersey. Median home values tended to rise most often in Kentucky, Colorado, Wisconsin, Utah and Arizona.
Still, median 4Q 2024 prices in four out of five zones fell below the $360,000 U.S. median. In almost half the zones, homes listed for less than $200,000. Median prices fell below $150,000 in 30% of QOZs studied – fewer than in previous years. In 15% of zones, medians ranged from $150,000 to $199,000. In only 20% of zones were prices higher than the nationwide median.
Still, there are hopeful signs.
“We are seeing notable levels of economic potential in these areas that have long been in need of revival. This keeps happening as rising values and tight supplies of homes for sale push many buyers on limited budgets into areas they may not have considered a few years ago,” said ATTOM CEO Rob Barber.
“The big takeaway is that significant money is flowing into these locations, which can provide a stepping stone for the investment that the Opportunity Zone legislation is intended to spur.”
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
