Median home prices rose in nearly half of U.S. Opportunity Zones in the first quarter of 2025, reflecting continued housing market momentum even in some of the nation’s most economically distressed communities, according to a new report from property data provider ATTOM.
Based on ATTOM’s latest Opportunity Zones Report, 48% of the 3,120 zones analyzed saw quarterly gains in single-family home and condo prices compared to the fourth quarter of 2024. This occurred while the national median home price held steady at $355,000. On a year-over-year basis, 59% of Opportunity Zones posted price increases–closely mirroring broader market trends despite their lower-income demographics.
“Home-value patterns inside Opportunity Zones remain pretty much in lock-step with the rest of the country,” said Rob Barber, CEO of ATTOM. “While volatility exists in the lowest-priced areas, overall we continue to see steady price appreciation, likely driven by tight inventory and increased buyer interest in more affordable neighborhoods.”
Key Report Findings:
- Strong Annual Growth: Nearly 60% of Opportunity Zones recorded year-over-year price increases. In 42% of zones, values rose more than 10%, outperforming the 37% of similarly strong growth areas outside the zones.
- Persistent Affordability: Despite the gains, 80% of Opportunity Zones still had median home prices below the national median of $355,000. Nearly half had medians below $200,000.
- Volatility Remains: Roughly 75% of zones experienced price swings of at least 5%–up or down–between Q4 2024 and Q1 2025, often due to lower transaction volumes in these areas.
- Geographic Disparities: The Midwest continues to host the greatest share of lower-priced zones, with 61% of tracts there showing median home values below $175,000. In contrast, just 6% of Opportunity Zones in the West were under that threshold.
- Leading States: Indiana, New York, Missouri, Colorado, and New Jersey led the nation with the highest share of Opportunity Zones showing annual price increases–ranging from 65% to 75% of all zones in each state.
- Struggling Low-End Markets: Only 47% of zones where homes typically sold for under $125,000 saw annual gains, suggesting persistent weakness at the very bottom of the housing market.
Opportunity Zones, created under the Tax Cuts and Jobs Act, are designated census tracts aimed at revitalizing economically challenged areas through tax incentives for long-term investments. These areas typically host between 1,200 and 8,000 residents and are present across all U.S. states and territories.
Barber emphasized the continued potential for long-term transformation: “The home-buyer money flowing into these communities shows enduring potential for them to turn around, providing solid foundations for investors looking to use the Opportunity Zone incentives.”
Despite headwinds, the Q1 2025 data highlights that many Opportunity Zones are not just keeping pace with the broader housing market — they’re in some cases outperforming it, offering new hope for communities long marked by disinvestment.
