If you have yet to hear about the Opportunity Zone (OZ) program, you’re probably living under a rock. Here are a few quick talking points you can use to impress at your next networking event.
Since 2017, investors have been eager to take advantage of the Opportunity Zone Program, a federal initiative that incentivizes investment in economically depressed American communities through significant tax breaks on capital gains.
With over 6 million properties located in OZs throughout the country, the supply of these assets is demonstrably vast. Below is an interactive map, illustrating the proportion of commercial assets located within Opportunity Zones in each state, followed by our 4 biggest takeaways.
Takeaway 1: Opportunity Zones and temperature – both are hot in Arizona.
Over 23% of Arizona’s commercial assets are located in Opportunity Zones – the highest of any state.
Takeaway 2: Nebraska – lots of corn, not so much opportunity.
Under 5% of Nebraska’s commercial assets are located in Opportunity Zone areas, which is the lowest of any state. Similarly, many other midwestern states such as Wisconsin, Iowa, South Dakota, North Dakota and Indiana all have less than 9% of their total commercial assets located in OZs.
Takeaway 3: Everything’s bigger in Texas – including the supply of OZ assets.
Texas has the largest supply of OZ properties, with just under 1 million assets existing in qualified OZs. Texas also has the largest supply of total commercial assets in the United States, with over 4.9 million spread across its massive surface area.
Takeaway 4: The Southwest region takes advantage.
Texas, Oklahoma, New Mexico and Arizona have some of the highest proportions of commercial assets located in Opportunity Zone.
Looking to read more about Opportunity Zones? We’ve got you covered:
- Everything You Need to Know About Opportunity Zones and How to Invest
- Overview of Opportunity Zone Funds
- Opportunity Zone Investing in the 5 Major Markets
- How to Invest in Opportunity Zones Outside of the Major Markets
- 8 Step Guide to Investing in Opportunity Zones
- Opportunity Zone breakdown in…