Amazon’s HQ2 Opportunity Zones: Single-Family Homes By The Numbers
"The newly announced Amazon HQ2 markets certainly qualify as being in the path of progress."
ATTOM Data Solutions has analyzed the Opportunity Zones in the three markets selected for some portion of Amazon’s second headquarters: Long Island City, Crystal City and Nashville.
The analysis found that homes located in Opportunity Zones nationwide and in each of these three markets consistently were sold at a discount but also have appreciated in value more quickly over the past five years compared to homes outside of Opportunity Zones.
“The new Opportunity Zones created by the tax reform legislation passed in December 2017 provide real estate investors with prime, tax-incentivized investing opportunities, particularly if they can find zones that are in the path of progress,” said Daren Blomquist, senior vice president with ATTOM Data Solutions. “The newly announced Amazon HQ2 markets certainly qualify as being in the path of progress.”
The ATTOM analysis looked at housing characteristics, home values and price appreciation for 7.4 million residential properties and 259,000 home sales in more than 3,000 Opportunity Zones. Specifically in the Amazon HQ2 headquarter markets, ATTOM analyzed 80 Opportunity Zones in the Washington, D.C. metro area 65 in the New York metro area and five in the Nashville metro area.
It found that the average home price in Opportunity Zones so far in 2018 through September is $163,746, 43% below the average home price of $287,150 outside of Opportunity Zones. This trend plays out in the local Amazon HQ2 markets, illustrating that real estate investors who buy in these zones are realizing a substantial discount below home prices in surrounding areas of the market.
The Opportunity Zone Advantage
Even though homes in Opportunity Zones are selling at a discount, they have been appreciating faster over the last five years. Nationwide, prices for homes in Opportunity Zones are up 72% over the last five years compared to 46% appreciation for homes outside of Opportunity Zones during the same period. This trend also holds true in the local Amazon HQ2 markets.
Higher Share of Non-owner-Occupied Homes
ATTOM also looked at the share of non-owner-occupied homes in Opportunity Zones and found that nationwide, 37% of single family homes and condos in Opportunity Zones are nonowner-occupied, compared to 24% outside of Opportunity Zones.
Property Tax Advantage
ATTOM also analyzed average property taxes for home inside and outside Opportunity Zones. Nationwide, the average property tax for single family homes and condos in Opportunity Zones is $1,918, 41% below the average property tax of $3,248 for single family homes and condos not in Opportunity Zones.
Average property taxes for homes inside Opportunity Zones were substantially lower than average property taxes for homes outside of Opportunity Zones in each of the three Amazon HQ2 markets.