Median Home Prices Saw Double-Digit Growth In 61% of Opportunity Zones In Q1

Median home prices in opportunity zones increased in the first quarter of 2021 compared to Q1 in 2020, according to new data from ATTOM Data Solutions (ATTOM)

• 75% of homes in opportunity zones saw the median home price jump in Q1 2021 compared to Q1 2020.

• 61% of homes in opportunity zones saw median home prices jump by at least 10% from Q1 2020 to Q1 2021.

NOTE: Opportunity Zones are defined as census tracts in or along side low-income neighborhoods that meet various criteria for redevelopment.

Todd Teta, chief product officer with ATTOM Data Solutions, said in a statement, “Some of the country’s poorest neighborhoods continued riding the long national boom in home prices during the first quarter of the year, reaping increases that pretty much matched those in more-affluent areas.”

The Wall Street Journal reported on this very issue last week. Ben Eisen reported on new data that showed that the surging housing market was boosting some of the cheapest homes…

• “…ZIP Codes where the median home cost less than $100,000 in early 2018 have had a 42% rise in prices in the three years since then, according to a CoreLogic Inc. analysis for The Wall Street Journal. ” (WSJ)

CoreLogic, early this week, reported on high-end rental properties hitting a 14-year high, but it was the exact opposite for low-end properties…

“Rent prices for the low-end tier, increased 3.2% year over year in March 2021, down from 3.8% in March 2020.” (CL)

I know a lot of people are worried about our current housing market because they are worried about lower-income individuals being priced out of the market. While that is something to be concerned about, this current housing situation is benefiting many low-income individuals. If you own a house, the value has shot up almost exponentially. If you can’t buy and are looking to rent, rent prices are seeing the slowest appreciation in years. From a housing perspective, it has never been a better time to be in the lower income tier.