Opportunity Zone Home Price Trends Outpace Shaky Housing MarketBy RISMedia Staff
Median single-family home and condo prices rose from Q2 to Q3 2022 in 51% of Opportunity Zones around the country, and went up at least 3% in almost half, according to a new report from ATTOM.
The Q3 2022 report analyzed qualified low-income Opportunity Zones targeted by Congress for economic redevelopment in the Tax Cuts and Jobs Act of 2017. The report found that median prices fell below the nationwide median of $339,815 in 79% of Opportunity Zones, about the same portion as in earlier periods over the past year. In addition, median prices remained below $200,000 in 50% of the zones, down from 56% last year. Key highlights:
The report stated that the relative strength of Opportunity Zone markets continued in the third quarter even amid a series of forces that threatened to stall or derail an 11-year boom that nearly has tripled home prices nationwide and has trickled down to the nation’s lowest-price neighborhoods. More drops in home values could have an especially harsh effect on Opportunity Zones if those drops make other areas more affordable to buyers. “The combination of higher home prices and mortgage rates that have doubled over the past few months has made affordability a real challenge for both traditional homebuyers and investors,” said Rick Sharga, executive vice president of market intelligence at ATTOM. “For many prospective buyers, the solution to worsening affordability is to look for less expensive homes, and it seems like homes in Opportunity Zones might represent a relative bargain for buyers who’ve been priced out of other markets.” For the full report, click here. |
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