Opportunity Zones are really areas in the country that can provide tax incentives “to investors (corporations and individuals) with capital gains to invest (those capital gains) in low-income and undercapitalized communities,” according to the Tax Policy Center.
Opportunity Zones were created in the 2017 Tax Cuts and Jobs Act to benefit both distressed communities and individuals and/or corporations with capital gains to invest. Depending upon the length of that investment in low-income communities, either increases to that investment or no taxes on the profits would be levied.
12% of all US census tracts are designated by the Treasury Department as Opportunity Zones. Opportunity Funds can finance a wide range of projects and activities such as housing, commercial/industrial real estate projects, infrastructure and existing or start-up businesses. Here are the top ten Opportunity Zone census tracts with median home prices of either +$500,000 or -$200,000.
Top 10 Opportunity Zone Census Tracts with Median Home Prices +$500,000
San Jose-Sunnyvale-Santa Clara $950,000
San Luis Obispo-Paso Robles-Arroyo Grande $965,750
San Francisco-Hayward-Oakland $970,000
Los Angeles-Long Beach-Anaheim $988,750
San Jose-Sunnyvale-Santa Clara $995,000
New York-Newark-Jersey City $999,999
San Francisco-Hayward-Oakland $1,075,000
Los Angeles-Long Beach-Anaheim $1,100,000
Santa Cruz-Watsonville $1,245,000
Huntsville AL $1,450,000
Top 10 Opportunity Zone Census Tracts with Median Home Prices -$200,000
Merced CA $198,000
Dallas-Fort Worth- Arlington $198,412
Brevard NC $198,500
Greenville-Anderson-Maudlin SC $199,000
Las Vegas-Henderson-Paradise $199,000
Merced CA $199,000
Riverside-San Bernardino-Ontario $199,500
Spokane-Spokane Valley $199,900
Show Low AZ $199,900
According to the Tax Policy Center, 80% of Opportunity Zones during Q2 2019 had median home prices that were below the national median figure of $266,000. 50% had median prices of less than $150,000.
Also according to the Tax Policy Center, these are the states with the highest percentages of census tracts meeting Opportunity Zone requirements:
- Wyoming – 17%
- Mississippi – 15%
- Alabama – 13%
- North Dakota – 12%
- New Mexico – 12%
The District of Columbia had 14% of its census tracts meet Opportunity Zone requirements.
Nationwide, 10% of all census tracts meet Opportunity Zone requirements.