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OPPORTUNITY ZONE REDEVELOPMENT ZONES CONTINUE TO TRACK NATIONALLY HOME PRICE INCREASES IN SECOND QUARTER

Half of the analyzed areas see median house prices increase by at least 5% from the first to the second quarter of 2022, and by at least 20% per year in half of all areas

IRVINE, Calif., August 112022 /PRNewswire/ — ATTOMone of the main curators of real estate data nationwide for land and real estate data, today released its second quarter 2022 report analyzing the qualified low-income opportunity areas targeted by Congress for economic redevelopment in the 2017 Environmental Cuts Act. taxes and employment (see full methodology below). In this report, ATTOM examined 5,198 areas around United States with enough data to analyze, meaning they had at least five home sales in the second quarter of 2022.

The report found that median prices for single-family homes and condos increased from the first quarter of 2022 to the second quarter of 2022 in 63% of opportunity zones across the country and increased by at least 5% in approximately the half of the analyzed areas with enough data. . Typical values ​​have also increased by at least 20% per year in about half of the Opportunity Zones with enough data to analyze across all quarters.

Additionally, median values ​​rose in about half of the opportunity zones more than the 8.8% quarterly gain and 15.3% annual gain seen for all markets nationwide in the spring of 2022.

These gains extended similar trends seen over the past year, as home prices in distressed neighborhoods across the country continued to track gains in the broader national housing market.

Typical home values ​​in Opportunity Zones remained lower than most other neighborhoods across the country in the second quarter of 2022. Median prices in the second quarter fell below the national median of $346,000 in 77% of Opportunity Zones, about the same as in previous periods over the past year. Considerable price volatility also continued in these markets, with median values ​​falling quarterly in 37% of them, likely reflecting the small number of sales in many areas.

“Homes in most opportunity areas represent affordable options for real estate investors and homebuyers in a market where home prices and mortgage rates have risen,” said Rick Sharga, Executive Vice President of Business Intelligence at ATTOM. “With home prices up 15% from a year ago and mortgage rates nearly doubling, investors and homebuyers may find the lower purchase prices of homes available in areas of very attractive opportunities.”

Median prices were also lower $200,000 in 49% of areas during the second quarter of 2022. But this percentage under $200,000 was down from 58% in the second quarter of 2021 and 52% in the first quarter of 2022.

In another continued sign of market strength, prices rose at least 25% between the second quarter of last year and the same period this year in more of the opportunity areas than in other parts 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, the 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.

The continued price spikes inside the opportunity zones in the second quarter were one of the latest signs of how strong buyer demand, coupled with the tight supply of homes for sale in the United States, was able to move many households out of more upscale neighborhoods into lower priced markets. Demand continued through the spring buying season, even as mortgage rates rose in the second quarter to nearly 6%, gasoline and other fuel costs soared, l inflation has reached 40-year highs and economic uncertainty across the country has increased.

High level conclusions of the report:

  • Median prices for single-family homes and condominiums increased from Q1 2022 to Q2 2022 in 2,928 (63%) of opportunity zones in the United States with enough data to analyze, while decreasing by 37%. They increased from the second quarter of 2021 to the same period this year in 3,692 (77%) of these areas. In comparison, median prices increased quarterly in 69% of census tracts outside opportunity zones and annually in 82%. (Of the 5,198 Opportunity Zones included in the report, 4,654 had enough data to generate usable median price comparisons from Q1 to Q2 2022; 4,793 had enough data to make comparisons between the second quarter of 2021 and the second quarter of 2022).
  • Measured year over year, median home prices increased by at least 25% in the second quarter of 2022 in 1,883 (39%) of the opportunity zones with sufficient data. Prices rose as much during this period in only 34% of all other census tracts outside of Opportunity Zones across the country.
  • Of the states that had at least 25 Opportunity Zones with enough data to analyze in the second quarter of 2022, those with the largest portion of the Zones where median prices rose year over year were in the West. They were led by Utah (median prices up, year on year, in 97% of areas), Arizona (93 percent), Nevada (93 percent), Oregon (89%) and Idaho (88 percent).
  • Of the 5,198 areas in the report, 1,763 (34%) still had Q2 2022 median prices below $150,000. That was down from 41% of those areas a year earlier. Another 778 areas (15 percent) had medians in the second quarter of this year ranging from $150,000 at $199,999.
  • Median values ​​in the second quarter of 2022 ranged from $200,000 at $299,999 in 1,118 Opportunity Zones (22%) as they topped the national median for the second quarter of $346,000 out of 1,172 (23%).
  • The Midwest continued in the second quarter of 2022 to have the highest portion of the cheapest opportunity zones, with median home prices below $175,000 (69%), followed by Northeast (45%), South (45%) and West (6%).
  • 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 56% 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 for 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 the analysis if they had at least five sales during the first quarter of 2022. Median household income data for sectors and counties are from surveys conducted by the US Census Bureau (www.census.gov) from 2016 to 2020. The list of designated qualified opportunity areas can be found at US Department of Treasury. Regions are based on Census Bureau designations. Hawaii and Alaskathat the office designates as part of the Pacific region, have been included in the West region for this report.

About 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.

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