“Home prices still lag far behind national numbers, but gains and losses mostly keep tracking overall market patterns,” ATTOM chief executive officer Rob Barber said in the report. “The latest data shows opportunity zone housing markets continuing to attract considerable interest among home buyers pushed out of higher-priced areas in a market with very limited supplies of homes for sale.”
While most opportunity zones had typical home values well below the US median of $330,000 in Q1 2024, nearly 60% of zones saw larger annual price increases than the 3.1% gain nationwide.
However, areas with the lowest home values faced challenges, with only 45% of opportunity zones where homes typically sold for less than $100,000 experiencing annual price increases. This contrasts with higher-priced zones, where prices climbed in 60% to 70% of cases.
“Clearly, there are exceptions, especially at the lowest end of the price scale,” Barber said.
Among states with at least 25 qualifying zones, Kentucky, New Jersey, Tennessee, Arizona, and Minnesota saw the highest percentage of zones with quarterly price increases. Meanwhile, Utah, New York, Virginia, South Carolina, and Alabama experienced the lowest percentage of increases.
