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As Opportunity Zones continue to shape the U.S. housing market, understanding the uneven recovery in these areas is crucial for lenders navigating both risks and rewards. Defined in the 2017 Tax Cuts and Jobs Act, “Opportunity Zones” are low-income areas designated to receive specific tax incentives aimed at fostering long-term investments that stimulate economic development, job creation, and growth in distressed communities. Opportunity Zones show mixed results in the housing market, so lenders must consider these disparities when assessing risk because some areas are experiencing notable growth while others are facing ongoing challenges.
According to ATTOM’s Q2 2025 report, home prices increased in more than half of the country’s Opportunity Zones – with some seeing their highest median prices since 2008. However, these gains are not uniform across all zones. Lower-priced Opportunity Zones continue to face economic challenges, resulting in slow home price growth and market volatility that lenders need to account for in their risk assessments.
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If you have questions about this publication, please contact Adam Friedman, Ralph Vartolo or Michael DeRosa,
Friedman Vartolo LLP, 1325 Franklin Avenue, Suite 160, Garden City, NY 11530, Phone: (212) 471-5100 | Fax: (212) 471-5150.
