Opportunity Zones In Spotlight As Trump Takes Office

By ERIN FLYNN JAY
As President Donald Trump starts his second term, there is a renewed interest in Opportunity Zones.
Opportunity Zones are defined as census tracts in or alongside low-income neighborhoods that meet various criteria for redevelopment in all 50 states, the District of Columbia, and U.S. territories.
Enacted through the Tax Cuts and Jobs Act, these zones attract developers and investors due to the tax incentives, which can be used for commercial and industrial real estate, housing, infrastructure, and existing or start-up business investments. The program is set to sunset in 2026, but there is hope the administration will extend and potentially expand it with congressional approval.
U.S. Sen. Tim Scott, R-S.C., authored the bipartisan initiative. He brought up Opportunity Zones as he questioned Scott Bessent, Trump’s nominee to serve as U.S. Treasury Secretary, at his confirmation hearing last week.
“So many folks, mayors around the country, said for the first time, because of Opportunity Zones, they’re seeing affordable housing in their downtown areas,” Scott said. “I hope that the administration will spend some time encouraging and supporting the next iteration of Opportunity Zones.”
Scott said that $84 billion has been committed and invested in Opportunity Zones. There are 8,764 Opportunity Zones in the United States.
Jake Murphy, deputy communications director to Scott, told The Mortgage Note that by the end of 2023, investments in Opportunity Zones had created 172,000 new apartment units across 972 developments nationwide. Hundreds of thousands more units are on their way.
“Scott is looking forward to working with President Trump and his Republican colleagues to broaden and extend the Opportunity Zones program to continue driving economic development in the communities that need it most,” said Murphy.
Investments in Opportunity Zones can improve property values for homeowners in these communities.
ATTOM’s Q3 2024 report estimates that median single-family home and condo prices increased from the second quarter in 53% of Opportunity Zones around the country with enough data to measure.
For the report, ATTOM looked at 3,857 zones around the United States with sufficient data to analyze, meaning they had at least five home sales in the third quarter.
Among states that had at least 25 Opportunity Zones with enough data to analyze, the largest portions of zones where median prices increased annually were in Nevada (medians up in 81% of zones), Wisconsin (75%), Indiana (72%), Ohio (69%) and Utah (69%).
“State-level home-price trends in Opportunity Zones show mixed results, with the Midwest and West seeing the highest gains,” said Rob Barber, CEO at ATTOM. “However, looking at data by region and price clusters reveals clearer patterns, especially for understanding specific markets within Opportunity Zones.”
Regionally, Barber said the Midwest and Northeast are improving the most: 70% of Opportunity Zones in the Midwest and 72% in the Northeast saw median home prices rise year-over-year in Q3, compared to 63% in the South and 64% in the West.
Analyzing price clusters reveals further insight, showing more vulnerability at the lowest end of the market.
“Year-over-year in Q3, median home prices rose in just 54% of zones with values under $125,000, compared to increases in 67% to 73% of more expensive clusters,” said Barber. “Together, this suggests that while Opportunity Zones generally align with broader U.S. market trends, the most distressed areas are seeing the weakest growth, particularly in the South and West.”
In Utah, one of the states where median home prices increased annually, there is interest from investors in Opportunity Zones.
Mike Roberts, co-founder of City Creek Mortgage, said there’s a lot of growth in the tech sector in Utah and demand for housing is through the roof.
“People are moving here for jobs, outdoor activities, and a better quality of life,” said Roberts. “We’ve got a strong economy, and with that comes a lot of competition for homes.”
Interest in Opportunity Zones is there, Roberts said.
“I’m seeing a lot of interest from investors who want to take advantage of the tax incentives associated with these zones. They see an opportunity not just to buy low, but to hold onto properties that will appreciate over time,” said Roberts.
That said, some of the lowest-priced neighborhoods aren’t seeing the same level of growth as others.
“As an investor, you have to keep an eye on the specific areas you’re interested in because the landscape can vary quite a bit,” added Roberts.
Resources and maps of Opportunity Zones in each state can be found here.
Editor Kimberley Haas contributed to this report.