HOUSING MARKETS IN OPPORTUNITY REDEVELOPMENT AREAS CONTINUE TO FOLLOW NATIONAL PRICE INCREASES |


IRVINE, Calif., February 17, 2022 /PRNewswire/ — ATTOM, a leading nationwide real estate data curator for land and real estate data, today released its Fourth Quarter 2021 Special Report analyzing the qualified low-income opportunity areas targeted by Congress for the economic redevelopment in the Tax Cuts and Jobs Act 2017 (see full methodology below). In this report, ATTOM looked at 5,180 areas nationwide with enough data to analyze, meaning they had at least five home sales in Q4 2021.

The report found that median prices for single-family homes and condos increased from the third quarter of 2021 to the fourth quarter of 2021 in 56% of opportunity zones across the country and increased by at least 20% annually in nearly half.

While the pace of increases slowed a bit in the fourth quarter, median values ​​still rose in about half of the areas more than the 16.1% gain seen nationally from the fourth quarter of 2020 to the fourth. quarter of 2021.

Typical homes in Opportunity Zones continued to cost only a fraction of those in most other neighborhoods nationwide in the fourth quarter of 2021. Median prices in the fourth quarter were below the national median of $315,648 in 76% of Opportunity Zones, about the same as in previous periods last year.

Typical values ​​also remained below $200,000 in 51% of areas during the fourth quarter of 2021. But this has improved from 53% in the third quarter of 2021 and 61% a year earlier, as markets in some of the poorest communities in the countries have improved despite the continued threat of the coronavirus pandemic which hit these regions hardest when it hit in 2020.

A sign of even stronger growth, price spikes of at least 25% between the fourth quarter of 2020 and the same period in 2021 have occurred in a greater part of the opportunity zones than in the other neighborhoods of the country.

Opportunity zones are defined in tax law legislation as census tracts in or adjacent to low-income neighborhoods that meet various criteria for redevelopment in all 50 states, District of Colombia and US territories. Census tracts, as defined by the US Census Bureau, cover areas that have between 1,200 and 8,000 people, with an average of about 4,000 people.

Prices inside opportunity zones continued to grow in the fourth quarter of 2021 as a decade-long price surge in United States continued to spread to all parts of the country, including low-income communities.

The trend continued both because of and despite the pandemic, as a surge of buyers continued to search for a tight supply of homes for sale. The shopping glut propelled the market amid a combination of historically low mortgage rates and a desire by many households to trade life in congested areas, often in apartment buildings, for relative safety and greater space for work-from-home lifestyles offered by homes or condominiums.

“Neighborhoods in and around some of the poorest areas of United States continued to benefit from the boom in the domestic housing market in the fourth quarter of last year, just as they have done throughout 2021. The pace of price increases has slowed, which is common over the last months of each year. But the gains in the opportunity zones again roughly matched what was happening elsewhere and even beat the rest of the market in some respects,” said Todd Teta, product manager at ATTOM. “While Opportunity Zone markets remained depressed, the increases likely reflected the trickle-down effect of buyers out of more expensive neighborhoods. The gains also represented a continued sign of vitality in lower-income areas. – something that raises the bar for investors looking to take advantage of Opportunity Zone tax breaks.”

The report’s high-level findings include:

  • Median prices for single-family homes and condominiums increased from the third quarter of 2021 to the fourth quarter of 2021 in 2,688 (56%) of the opportunity zones with enough data to analyze, and increased from the fourth quarter of 2020 to the same period last year in 3,360 (77%) of these areas. In comparison, median prices increased quarterly in 55% of census tracts outside opportunity zones and annually in 81%. (Of the 5,180 Opportunity Zones included in the report, 4,843 had enough data to generate usable median price comparisons from Q3 to Q4 2021; 4,379 had enough data to draw comparisons between Q4 quarter of 2020 and the fourth quarter of 2020). 2021).
  • Measured year over year, median home prices increased by at least 20% in the fourth quarter of 2021 in 1,997 (46%) of the opportunity zones with sufficient data. Prices rose as much during this period in 41% of other census tracts across the country.
  • Opportunity Zones did even better comparing areas where prices rose at least 25% from the fourth quarter of 2020 to the fourth quarter of 2021. Measured year-over-year, median home prices increased as much in 1,655 (38%) of Opportunity Areas but in only 31% of Census Tracts elsewhere in the country.
  • Typical single-family home values ​​in 51% of all Opportunity Zones rose annually in the fourth quarter of 2021 by more than the jump in the overall national median home price. Nationally, the figure increased by 16.1%, year over year. Measured quarterly, prices in Opportunity Zones rose at a slower pace than at the start of 2021. But 52% of Zones still saw quarterly improvements larger than the national rise of 1.4%.
  • Among the states that had at least 25 Opportunity Zones with enough data to analyze during the fourth quarter of 2021, those with the largest portion of the Zones where the median price rose year over year were in the West. They were led by Idaho (median prices up, year on year, in 96% of areas), Nevada (95 percent), Utah (92%), Oregon (91%) and Washington (91 percent).
  • Of the 5,180 areas in the report, 1,803 (35%) still had Q4 2021 median prices below $150,000 and 856 (17%) had medians ranging from $150,000 for $199,999.
  • Median values ​​in the fourth quarter of 2021 ranged from $200,000 for $299,999 in 1,176 Opportunity Zones (23%) as they exceeded the national median of $315,648 out of 1,219 (24%).
  • The Midwest continued in the fourth quarter of 2021 to have the bulk of the Opportunity Zone plots with a median home price below $150,000 (61%), followed by the South (40%), the Northeast (36%) and the West (4%).
  • Median household incomes in 87% of Opportunity Zones analyzed were lower than the medians of the counties where they were located. Median incomes were less than three-quarters of county-level figures in 55% of areas and less than half in 16%.

Report methodology

ATTOM Opportunity Zone analysis is based on home sale price data derived from registered deeds of sale. Statistics from previous quarters are revised with each new report as more data on acts become available. ATTOM’s analysis compared median home prices in census tracts designated as opportunity areas by the Internal Revenue Service. Unless otherwise specified, sectors were used for analysis if they had at least five sales during the fourth quarter of 2021. Median household income data for sectors and counties are from surveys conducted by the US Census Bureau (www.census.gov) from 2015 to 2019. The list of Designated Qualified Opportunity Zones can be found at US Department of Treasury. Regions are based on Census Bureau designations. Hawaii and Alaskawhich the office designates as part of the Pacific region, have been included in the West region for this report.

On ATTOM

ATTOM offers a premium property data to power products that enhance transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-source property tax, deed, mortgage, seizure, environmental risk, natural hazard, and neighborhood data for more than 155 million residential and commercial properties in the United States covering 99% of the country’s population. A rigorous data management process comprising more than 20 steps validates, standardizes and improves the real estate data collected by ATTOM, assigning each ownership record a unique and persistent identifier – the ATTOM ID. The 20TB ATTOM Data Warehouse powers innovation across multiple industries, including mortgage, real estate, insurance, marketing, government, and more, with flexible data delivery solutions that include bulk file licensing, Property Data API, real estate market trends, property reports and more. We’re also introducing our latest innovative solution, which provides immediate access and streamlines data management – ATTOM cloud.

Media Contact:

Christine Stricker

949.748.8428

christine.stricker@atomdata.com

Data and Reports License:

datareports@atomdata.com

Show original content to download multimedia:https://www.prnewswire.com/news-releases/housing-markets-in-opportunity-zone-redevelopment-areas-continue-to-keep-up-with-national-price-increases-301484432.html

ATTOM SOURCE

Previous Entergy will publish its 2021 financial results on February 23
Next Keith Urban explains how he was asked to replace Adele in Vegas