Home-Price Trends in Opportunity Zones

Home-Price Trends in Opportunity Zones: What Q1 2025 Means for Investors and Agents
Posted May 22, 2025 | KW Default Solutions

Opportunity Zones—low-income census tracts targeted for economic revitalization—continue to mirror national housing trends, even as the broader real estate market settles into a slower winter rhythm. According to the latest report from ATTOM, nearly half of all Opportunity Zones saw price increases in the first quarter of 2025, with 59% seeing annual appreciation.

At KW Default Solutions, we pay close attention to these areas. Many of the neighborhoods we work in—especially those with distressed properties and motivated sellers—overlap with designated Opportunity Zones. For agents, investors, and community-minded buyers, these zones remain vital indicators of where market activity, value, and risk converge.

 
📈 Key Takeaways from Q1 2025
48% of Opportunity Zones nationwide saw quarterly home price gains, despite overall U.S. prices remaining flat.
59% saw year-over-year increases, slightly outperforming the national average of 8% annual appreciation.
42% of zones experienced double-digit annual growth, particularly in mid-tier and higher-value Opportunity Zones.
However, only 47% of the lowest-priced zones (under $125K) saw year-over-year growth—highlighting persistent vulnerability in the most distressed areas.
 
🏘️ Opportunity Zones vs. the National Market
One of the most consistent findings from ATTOM’s multi-year tracking is that Opportunity Zone price patterns closely track national trends—regardless of whether the market is booming, correcting, or cooling. This is a critical point for KW agents and investors working in these neighborhoods.

Even with price volatility driven by low sales volume in some tracts, the big picture is clear: low-income zones are not being left behind. In fact, in many cases, they’re outperforming the broader market.

“Home-value patterns inside Opportunity Zones remain pretty much in lock-step with the rest of the country,” says Rob Barber, CEO of ATTOM. “The buyer activity flowing into these areas suggests strong potential for revitalization—especially for those leveraging Opportunity Zone tax incentives.”
 
🗺️ Markets to Watch
Among states with significant data, these stood out for the highest percentage of zones with annual growth:

Indiana – 75% of zones saw price gains
New York – 72%
Missouri – 70%
Colorado – 69%
New Jersey – 65%
Meanwhile, states like Nevada (44%), Florida (49%), and Tennessee (52%) saw fewer Opportunity Zones with positive trends—though this could present entry points for smart acquisitions at the ground level.

 
💡 What This Means for KW Default Solutions Members
Opportunity Zones offer a unique cross-section of affordability, appreciation potential, and community revitalization. Whether you're helping distressed homeowners, connecting investors with undervalued assets, or leveraging the 1031 exchange and tax-deferral benefits of Opportunity Zone investment, these trends reinforce our mission:

Support economic development
Create win-win solutions for sellers and investors
Stay data-informed to spot emerging opportunities
 
🏁 The Bottom Line
The Q1 2025 Opportunity Zone report underscores a clear truth: these neighborhoods are no longer fringe markets—they are foundational to the housing story. For agents and investors in the KW Default Solutions community, staying active and engaged in these areas is key to long-term success.

We’ll continue to track these trends and bring you actionable insights.

– KW Default Solutions

Explore more insights, data-driven strategies, and tools to help distressed homeowners and REO clients at www.KWDefaultSolutions.com