IRVINE, Calif., Nov. 15, 2018 /PRNewswire/ -- ATTOM
Data Solutions, curator of the nation's premier property database,
today released an analysis of Opportunity Zones in the three
markets selected for some portion of Amazon's second headquarters,
dubbed HQ2: New York, Washington, D.C., 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 with a total of
263,889 single family homes and condos and a total of 3,031 home
sales in 2018 year-to-date; 65 Opportunity Zones in the
New York metro area with a total
of 129,826 single family homes and condos and a total of 1,442 home
sales YTD in 2018; and 5 Opportunity Zones in the Nashville metro area with a total of 28,381
single family homes and condos and 367 home sales YTD in 2018.
New York Opportunity Zone Heat Map
Washington, D.C., Opportunity Zone
Heat Map
The Opportunity Zone Discount
The analysis found that
the average home price in Opportunity Zones so far in 2018 through
September is $163,746, 43 percent
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.
Average home prices and discounts by 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 percent over the last five
years compared to 46 percent appreciation for homes outside of
Opportunity Zones during the same period. This trend also holds
true in the local Amazon HQ2 markets, suggesting that real estate
investors in these areas have been able to have their cake and eat
it too.
5-year home price appreciation by market
Higher Share of
Nonowner-Occupied Homes
ATTOM also looked at the share of
nonowner-occupied homes in Opportunity Zones since that provides
insight into what real estate investing strategy may be most
appropriate -- home flipping or buying single family rentals.
Nationwide, 37 percent of single family homes and condos in
Opportunity Zones are nonowner-occupied, compared to 24 percent
outside of Opportunity Zones. The numbers varied within the three
local markets selected for some slice of Amazon HQ2 (see chart
below).
Share of nonowner-occupied homes by market
Lower Property Taxes
Lastly, ATTOM analyzed average
property taxes for home inside and outside Opportunity Zones.
Property taxes are typically the second highest cost of home
ownership — behind the actual sales price of the home — and as such
should be factored into any real estate investing decisions.
Nationwide, the average property tax for single family homes and
condos in Opportunity Zones is $1,918, 41 percent 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.
Average property taxes by market
About ATTOM Data Solutions
ATTOM Data Solutions
provides premium property data to power products that improve
transparency, innovation, efficiency and disruption in a
data-driven economy. ATTOM multi-sources property tax, deed,
mortgage, foreclosure, environmental risk, natural hazard, and
neighborhood data for more than 155 million U.S. residential and
commercial properties covering 99 percent of the nation's
population. A rigorous data management process involving more than
20 steps validates, standardizes and enhances the data collected by
ATTOM, assigning each property record with a persistent, unique ID
— the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in
many industries including mortgage, real estate, insurance,
marketing, government and more through flexible data delivery
solutions that include bulk file licenses, APIs, market trends,
marketing lists, match & append and more.
Media Contact:
Christine
Stricker
949.748.8428
christine.stricker@attomdata.com
Data and Report Licensing:
949.502.8313
datareports@attomdata.com
View original content to download
multimedia:http://www.prnewswire.com/news-releases/opportunity-zones-offer-favorable-real-estate-investing-options-in-amazon-hq2-markets-according-to-attom-analysis-300750890.html
SOURCE ATTOM Data Solutions