Home Price Trends in Opportunity Zones Continue to Lag Behind National Growth in Q2 2025
In the recent report from ATTOM, which specializes in land and real estate analytics, the second-quarter analysis for 2025 highlights mixed results regarding home price increases in U.S. Opportunity Zones. These zones were designated under the Tax Cuts and Jobs Act of 2017, aiming to stimulate economic redevelopment in underprivileged areas. This report analyzes 3,838 Zones across the country, focusing on areas with sufficient data available, specifically census tracts showing at least five home sales from April to June 2025.
The findings reveal that 57.3% of Opportunity Zones experienced an uptick in median home and condo prices from the first to the second quarter. However, this growth is relatively slower compared to broader trends in the national housing market, as only 50.5% of these Zones saw annual price increases, a figure that pales in comparison to the 56% seen outside the Opportunity Zones.
Despite the slow overall growth, some areas have shown promising trends. Notably, 39% of Opportunity Zones reported price increases exceeding 10% year-over-year. Additionally, about 8.4% of these Zones hit their highest median prices since at least 2008. Yet, for many of the zoned areas with lower priced homes, growth remains challenging; only 39% of those with median sales prices under $125,000 noted any rise, underscoring the difficulties these communities face.
Rob Barber, CEO of ATTOM, commented on the findings, noting that most Opportunity Zones see their home values shifting in line with national trends. However, he cautions that significant volatility still exists, especially in lower-priced neighborhoods, partly due to limited inventory which nudges buyers towards economically distressed areas.
The Midwest stands out as a region with more robust growth, with states like Wisconsin showing the strongest increases—where 68% of its Opportunity Zones saw home prices rise year-over-year. Other states such as Indiana and Iowa also reported similar growth rates of 65%. This trend highlights the distinct regional dynamics impacting price trajectories across different Opportunity Zones.
In stark contrast to these findings, a majority of Opportunity Zone census tracts—around 79.9%—continue to register median home prices below the national median of $369,000. Nearly half of these zones, 49.6%, have medians under $225,000. This gap further emphasizes the economic challenges faced by these communities as they strive for improvement amidst uneven recovery patterns.
The ATTOM report utilizes data from recorded sales deeds to draw conclusions and recognizes that data for previous quarters is revised periodically, ensuring accuracy as new information emerges. The analysis represents home sales in census tracts designated as Opportunity Zones by the IRS and is crucial for understanding the real estate landscape in economically targeted areas. As such, it serves as a vital tool for stakeholders looking to navigate the complexities of housing trends, investments, and the ongoing quest for equitable development in America's underserved neighborhoods.
In essence, while there are pockets of resilience and growth within Opportunity Zones, the overarching narrative is one of caution. Many communities remain in the grasp of economic challenges, and as the national housing market continues to push forward with substantial price gains, the journey toward recovery for these zones may require further strategic interventions to ensure they do not fall further behind. Understanding and addressing the nuanced factors affecting these areas will be essential in forming policies that foster sustainable growth and investment opportunities.
The findings reveal that 57.3% of Opportunity Zones experienced an uptick in median home and condo prices from the first to the second quarter. However, this growth is relatively slower compared to broader trends in the national housing market, as only 50.5% of these Zones saw annual price increases, a figure that pales in comparison to the 56% seen outside the Opportunity Zones.
Despite the slow overall growth, some areas have shown promising trends. Notably, 39% of Opportunity Zones reported price increases exceeding 10% year-over-year. Additionally, about 8.4% of these Zones hit their highest median prices since at least 2008. Yet, for many of the zoned areas with lower priced homes, growth remains challenging; only 39% of those with median sales prices under $125,000 noted any rise, underscoring the difficulties these communities face.
Rob Barber, CEO of ATTOM, commented on the findings, noting that most Opportunity Zones see their home values shifting in line with national trends. However, he cautions that significant volatility still exists, especially in lower-priced neighborhoods, partly due to limited inventory which nudges buyers towards economically distressed areas.
The Midwest stands out as a region with more robust growth, with states like Wisconsin showing the strongest increases—where 68% of its Opportunity Zones saw home prices rise year-over-year. Other states such as Indiana and Iowa also reported similar growth rates of 65%. This trend highlights the distinct regional dynamics impacting price trajectories across different Opportunity Zones.
In stark contrast to these findings, a majority of Opportunity Zone census tracts—around 79.9%—continue to register median home prices below the national median of $369,000. Nearly half of these zones, 49.6%, have medians under $225,000. This gap further emphasizes the economic challenges faced by these communities as they strive for improvement amidst uneven recovery patterns.
The ATTOM report utilizes data from recorded sales deeds to draw conclusions and recognizes that data for previous quarters is revised periodically, ensuring accuracy as new information emerges. The analysis represents home sales in census tracts designated as Opportunity Zones by the IRS and is crucial for understanding the real estate landscape in economically targeted areas. As such, it serves as a vital tool for stakeholders looking to navigate the complexities of housing trends, investments, and the ongoing quest for equitable development in America's underserved neighborhoods.
In essence, while there are pockets of resilience and growth within Opportunity Zones, the overarching narrative is one of caution. Many communities remain in the grasp of economic challenges, and as the national housing market continues to push forward with substantial price gains, the journey toward recovery for these zones may require further strategic interventions to ensure they do not fall further behind. Understanding and addressing the nuanced factors affecting these areas will be essential in forming policies that foster sustainable growth and investment opportunities.
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