ATTOM, a leading curator of land, property, and real estate data, today released its fourth-quarter 2023 report analyzing qualified low-income Opportunity Zones targeted by Congress for economic redevelopment in the Tax Cuts and Jobs Act of 2017 (see full methodology below). In this report, ATTOM looked at 3,667 zones around the United States with sufficient data to analyze, meaning they had at least five home sales in the fourth quarter of 2023.
The report found that median single-family home and condo prices dropped from the third quarter of 2023 to the fourth quarter of 2023 in 52 percent of Opportunity Zones around the country with sufficient data to analyze, declining by more than 3 percent in close to half.
Those downturns, in and around low-income neighborhoods where the federal government offers tax breaks to spur economic revival, tracked closely with nationwide price trends as a decade-long boom in the U.S. housing market showed signs of slowing down. The latest trends also continued a long-term pattern of home values inside Opportunity Zones moving alongside broader nationwide gains and losses for at least the last three years. That marked an ongoing sign of economic tides rising or falling inside some of the country’s most distressed communities along with other markets around the country.
Opportunity Zones even showed signs again of doing slightly better than other neighborhoods around the country during the fourth quarter of last year. For example, while prices generally decreased, a slightly larger portion of Opportunity Zones saw significant price increases in the fourth quarter compared to other locations around the U.S.
“The fourth quarter of last year certainly wasn’t a great one for Opportunity Zone home values, with more losses than gains. But within the bigger picture, those areas keep riding national coattails, whether home values are going up or whether they are going down. Nothing jumped out as much worse than what happened…
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