Understanding Home Prices in Opportunity Zones: Q2 Insights

Home Price Trends in Opportunity Zones

Price increases in Opportunity Zones, which are designated for economic redevelopment, have been noticeable, albeit lagging behind trends seen in the broader U.S. housing market. In a recent report released by ATTOM, which provides critical property data and analytics, it was revealed that during this period, 57% of Opportunity Zones saw median prices for single-family homes and condos rise from the first quarter to the second quarter.

A Closer Look at Market Dynamics

This analysis examined 3,838 Opportunity Zones across the country, vetting those with sufficient data, specifically those that recorded at least five home sales in the second quarter. Approximately 50.5% of these zones reported an increase in median home values year-over-year, contrasting with the broader report indicating a 56% rise in prices for areas outside these designated Opportunity Zones.

Home Price Movements in Opportunity Zones

The national home price surge during this period reached historical figures, with 8.4% of Opportunity Zones marking their highest median prices since 2008. Notably, around 39% of these zones witnessed annual home value increases of 10% or more. Yet, the slower growth in the zones with the lowest median sales prices highlights significant variability in price appreciation.

Market Volatility and Opportunities

Rob Barber, CEO of ATTOM, pointed out that while home values in most Opportunity Zones are closely following national trends, some zones still experience substantial volatility, particularly in lower-priced neighborhoods. Inventory constraints continue to drive prices up, nudging buyers toward more economically challenged areas. Barber remarked that despite a general upward trajectory, many Opportunity Zones are trailing in year-over-year gains, indicating an uneven recovery landscape.

Defining Opportunity Zones

Opportunity Zones are specific census tracts located in or near low-income neighborhoods. These areas are identified in the Tax Cuts and Jobs Act of 2017 to encourage investment and development. Each census tract typically houses between 1,200 and 8,000 residents, averaging around 4,000. Despite the similarities in price growth between areas within and outside Opportunity Zones, homes in the former generally remain more affordable, with nearly 80% of these tracts reporting median prices below the national average of $369,000.

Understanding Price Volatility

Opportunities for investment in these Zones are accompanied by notable price fluctuations. In fact, nearly 73% of the Opportunity Zone census tracts analyzed displayed median home price changes exceeding 5% year-over-year. This high volatility can largely be attributed to the small number of transactions in many zones.

Key Insights from ATTOM's Report

• 57.3% of the Opportunity Zone census tracts witnessed price increases from the first to the second quarter of 2025, while year-over-year increases were observed in 50.5% of tracts examined.
• The 50.5% of areas within Opportunity Zones that experienced price rises is lower compared to 56% of the surrounding areas.
• 39% of census tracts in Opportunity Zones registered annual price growth of 10% or more compared to only 32% of tracts outside these zones.
• Opportunity Zones with lower home values demonstrated significantly slower price growth, affecting 39% of areas where prices were below $125,000.
• The Midwest region has shown the strongest growth, with Wisconsin leading the pack in price increases among its Opportunity Zones.

Conclusion: The Path Ahead for Opportunity Zones

In conclusion, the current landscape for home prices in Opportunity Zones reflects both opportunities and challenges. Although some areas are aligning with national trends and experiencing higher valuations, several others continue to face hurdles. This underscores the importance of targeted investments and strategies to elevate home values and economic conditions in these communities.

Frequently Asked Questions

What are Opportunity Zones?

Opportunity Zones are census tracts defined under the Tax Cuts and Jobs Act of 2017, aimed at fostering economic growth in low-income areas through incentivized investments.

How did home prices perform in the recent report?

In the second quarter of 2025, 57% of Opportunity Zones saw increases in median home prices from the previous quarter.

Are home prices in Opportunity Zones lower than the national average?

Yes, the majority of Opportunity Zones have median home prices significantly lower than the national median of $369,000, with 79.9% reporting lower median prices.

What factors contribute to price volatility in Opportunity Zones?

Price volatility can be attributed to limited sales transactions within many zones, leading to swings in home values.

Which regions are performing best in terms of price growth?

The Midwest shows the strongest performance in home price growth among Opportunity Zones, particularly in states like Wisconsin and Indiana.

About The Author

Hi there, As a writer and financial specialist, Henry Turner is passionate about guiding people through the complex world of finance. Having worked in finance for many years, I am an expert at simplifying difficult financial ideas into understandable, useful insights for my blog and articles. My goal is to arm you with the confidence and information you need to make wise financial choices.

Writing for a number of financial blogs has allowed me to interact with readers from novice investors looking for fresh ideas to seasoned investors starting their financial journeys. My mission is to enable everyone to understand and access finance, so enabling you to confidently and clearly reach your financial goals. I appreciate you traveling with me toward success and financial literacy.

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