Home Prices Continue Rising In Two-Thirds Of Opportunity Zones In First Quarter Of 2020

IRVINE, Calif., May 14, 2020 /PRNewswire/ -- ATTOM Data Solutions, curator of the nation's premier property database and first property data provider of Data-as-a-Service (DaaS), today released its first-quarter 2020 special report analyzing qualified Opportunity Zones established by Congress in the Tax Cuts and Jobs act of 2017 (see full methodology below). In this report, ATTOM looked at about 3,000 zones with sufficient sales data to analyze, meaning they had at least five home sales in each quarter from 2005 through the first quarter of 2020.

The report found that 45 percent of the zones saw median home prices rise by more than the national increase of 11.3 percent from the first quarter of 2019 to the first quarter of 2020, where sufficient data was available. That was down slightly from the 47 percent of zones that bested the 9.4 percent annual change from the fourth quarter of 2018 to the same period in 2019.

The report also shows that 78 percent of the zones had median home prices in the first quarter of 2020 that were less than the national median of $265,900.

Data in the report forms the last snapshot of Opportunity Zone home prices before the major economic impact of the worldwide Coronavirus pandemic.

"Home prices in designated Opportunity Zones around the country keep showing strong gains, tracking the housing market boom now in its ninth year. Nearly half did even better in the first quarter of 2020 than the nation as a whole – a notable trend in some of the country's most distressed neighborhoods," said Todd Teta, chief product officer with ATTOM Data Solutions. "As with other recent ATTOM reports, this one needs to be taken in the context of the looming impact of the Coronavirus pandemic, which could cut the legs out from under the housing market. For now, though, home prices are going strong in Opportunity Zones, which offers significant hope to current and potential homeowners and investors."

High-level findings from the report include:

• Median prices rose from the first quarter of 2019 to the first quarter of 2020 in 64 percent of Opportunity Zones with sufficient data to analyze. In 36 percent of zones, they declined or stayed the same. Of the 3,010 zones included in the report, 2,584 had enough data to generate usable median prices in both the first quarter of 2019 and first quarter of 2020.
• Median prices in 45 percent of Opportunity Zones with sufficient data to analyze rose by more, year over year, than values increased nationally. The national median home price increased from the first quarter of 2019 to the first quarter of 2020 by 11.3 percent.
• Among all 3,010 Opportunity Zones in the report, California had the most, with 389 zones, followed by Florida (295 zones), Georgia (148 zones), Texas (144 zones) and North Carolina (137 zones).
• Of all zones in the report, 1,384 (46 percent) had a median price in the first quarter of 2020 that was less than $150,000 and 502 (17 percent) had medians ranging from $150,000 to $199,999. Another 467 (16 percent) ranged from $200,000 up to the national median price of $265,900 while 657 (22 percent) were more than $265,900. All percentages were similar to those in the fourth quarter of 2019.
• In Metropolitan Statistical Areas with sufficient sales data to analyze, 86 percent of Opportunity Zones had median first quarter 2020 sales prices that were less than the median values for the surrounding MSAs. Some 25 percent had median sales prices that were less than half the figure for the surrounding MSAs. Fourteen percent of the zones had median sales prices that were equal to or above the median sales price of the broader MSAs.
• The Midwest continued to have the highest rate of Opportunity Zone tracts with a median home price of less than $150,000 (76 percent), followed by the South (58 percent), the Northeast (45 percent) and the West (11 percent).

Report methodology
The ATTOM Data Solutions Opportunity Zones analysis is based on home sales price data derived from recorded sales deeds. Statistics for previous quarters are revised when each new report is issued as more deed data becomes available. ATTOM Data Solutions compared median home prices in census tracts designated as Opportunity Zones by the Internal Revenue Service. Except where noted, tracts were used for the analysis if they had at least five sales in each quarter from 2005 through the first quarter of 2020. Median household income data for tracts and counties comes from surveys taken the U.S. Census Bureau (www.census.gov) from 2014 through 2018. The list of designated Qualified Opportunity Zones is located at U.S. Department of the Treasury. Regions are based on designations by the Census Bureau. Hawaii and Alaska, which the bureau designates as part of the Pacific region, were included in the West region for this report.

About ATTOM Data Solutions
ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, property data APIs, real estate market trends, marketing lists, match & append and introducing the first property data delivery solution, a cloud-based data platform that streamlines data management – Data-as-a-Service (DaaS).

Media Contact:
Christine Stricker
949.748.8428
[email protected] 

Data and Report Licensing:
949.502.8313
[email protected]

SOURCE ATTOM Data Solutions

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