By Anayat Durrani 

Median single-family home and condo prices rose from the third quarter of 2021 to the fourth quarter of 2021 in 56% of Opportunity Zones nationwide and spiked by at least 20% annually in almost half, according to a report by ATTOM a leading curator of real estate data nationwide for land and property data. 

The data show that housing markets in opportunity zone redevelopment areas are keeping up with national price increases. 

“The Q4 2021 Opportunity Zone sales data brought more welcome news all around - for homeowners, potential investors and even buyers – in neighborhoods sorely in need of it,” says ATTOM Chief Product Officer, Todd Teta. 

The pace of increases slowed a bit in the fourth quarter, however, median values went up in about half the zones by more than the 16.1% gain seen nationwide from the fourth quarter of 2020 to the fourth quarter of 2021, the report said. 

“Investors can look at that and see more money continuing to flow into areas targeted for Opportunity Zone tax breaks. While many redevelopment projects still mainly remain in the planning stages, rising home values strongly suggest greater economic potential for using the program,” says Teta. 

Housing report indicates stronger growth in Opportunity Zones Typical homes in Opportunity Zones continued to cost a fraction of those in most other neighborhoods nationwide in the fourth quarter of 2021. Median fourth-quarter prices were below the national median of $315,648 in 76% of Opportunity Zones, about similar in earlier periods in 2021. 

The report said one indicator of stronger growth, includes price spikes of at least 25% from the fourth quarter of 2020 to the same period in 2021 in a larger portion of Opportunity Zones than in other neighborhoods around the country. 

Prices inside OZs continued to grow during the fourth quarter of 2021 as a decade-long price boom in the US continued to spread nationwide, including lower-income communities. 

The trend has continued due to and in spite of the pandemic buyers continuing to pursue a tight supply of homes for sale, due to historically low mortgage rates and a desire of many households to trade life in congested areas, for safer and larger spaces to accommodate work-at-home lifestyles, the report said. 

In the fourth quarter of 2021 the Midwest continued to have the highest portion of Opportunity Zone tracts with a median home price of less than $150,000, followed by the South, the Northeast and the West. 

“Mortgage rates, while inching up lately, remain very low. The pandemic remains a powerful force affecting buyer demand. Employment and wages are up. Despite recent dips, the stock market is still strong, which provides buyers with resources for down payments. And supplies of homes for sales continue to be tight,” says Teta. 

“It’s reasonable to expect that price trends in opportunity zones generally should keep following the national scenario.”

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