Alabama has the highest share of Opportunity Zones in Q2 2019
With new tax cuts aimed at promoting growth in Opportunity Zones, nearly half of homes in these low-income areas had median prices below $150,000.
In the 3,100 zones analyzed, approximately 80% posted median home prices below the national average of $266,000 in the second quarter, according to a new report from ATTOM Data Solutions. Specifically, 47% had a median price that was less than $150,000, while 17% ranged from $150,000 to $199,999, and 16% varied from $200,000 to $266,000. Only 19% went above the national median.
The report also revealed that homes in one out of four Opportunity Zones cost less than half the typical value in the metropolitan statistical area (MSA) where they’re located. Twenty-six percent had sale prices less than 50% of the median in the MSA.
Meanwhile, 86% had median sales prices that were less than the median prices of surrounding MSAs. Merely 14% had prices that were equal to or above the median in the MSA.
"Opportunity Zones are among the poorest areas of the country, with some of the lowest home prices. This should come as no surprise because the zones are designed to be in or alongside economically distressed neighborhoods," said ATTOM Chief Product Officer Todd Teta. "But the differences between these and other areas in most parts of the nation are stark. The numbers provide key benchmarks for how much room there is for these areas to grow and how much new investment they need."
The states with the highest percentage of Opportunity Zones with a median price less than half the MSA were Alabama (55%), Pennsylvania (53%), Illinois (51%), Ohio (47%) and Georgia (45%). Those with the lowest share, on the other hand, included Washington (1%), Nevada (3%), Oregon (4%) Colorado (4%), and Indiana (4%).
