Opportunity Zone Magazine Volume 1, Issue 3 - Page 24
24 OPPORTUNITY ZONE MAGAZINE | VOLUME 1 • ISSUE 3
WHY NUMBERS SHOW OPPORTUNITY IN OPPORTUNITY ZONES
OZs HAVE PLENTY OF LOCAL AMENITIES
Finally, OZs are not without their fair share of local
attractions and amenities. For instance, 4,300 OZs contain
a park or recreation area, including 339 OZs have golf
courses. Some 820 OZs have a shopping center, 688 OZs
contain a college or university 5 . These types of amenities
are drivers of long-term value creation and can serve as
catalysts for rapid change.
Overall, the locational attributes of OZs – strong
employment options, high quality infrastructure, growing
rent and income, local amenities, and plenty of young
people – make OZs increasigly attractive investment
locations. These locational strengths can help you be more
confident about OZ investment for you and your partners.
In the end, finding the right OZ to invest in will require
some education about what these locations really are – not
their perception but their reality. The reality is that there
are a lot of positives about these places. It’s time we start
letting people know.
OZs are within 1 mile of a major highway, which benefits
office and industrial businesses. Over 4,800 OZ tracts
have rail access, either passenger or freight. And there
are more than 9,000 transit stops – ferry, bus, and rail –
within OZs, providing non-auto travel options for both
residents and workers. Overall, the level of transportation
More than half of all OZs are
within 1 mile of a major highway,
which benefits office and industrial
businesses.
access in OZs is better than non-OZ tracts. As more
businesses and residents desire strong transportation access,
OZ’s transportation benefits are positioned to be a strong
attractor of growth and supporter of economic activity.
OZs HAVE A LOT OF YOUNG PEOPLE
OZs have a higher proportion of residents aged 18-34 than
non-OZs. This cohort accounts for 27% of the population in
OZs compared to only 23% elsewhere. Young people are much
more likely to rent, and are attractors of entertainment, retail
and food service businesses. Additionally, younger people
generally have lower incomes but relatively more disposable
income. So, while incomes in OZs are still low, perhaps
purchasing power is a bit higher.
Jeremy Goldstein, is a market analyst and the founder of
Foundation residential real estate forecasts, a data service
providing neighborhood-scale housing price forecasts. Goldstein
also works with public and private sector clients on a range of
market analyses, including regional population and employment
forecasting, and business gap analyses. Goldstein writes regularly
on issues related to Opportunity Zones and residential real estate.
He is particularly interested in the potential for Opportunity Zones
to tap the potential of traditionally underinvested communities
throughout the U.S.
Sources:
1
Rent and rent growth data from US Census American Community Survey, 2010 – 2018,
https://data.census.gov/cedsci
2
Employment data from Census Longitudinal Employer-Household Dynamics Origin-
Destination Employment Statistics, 2017, https://lehd.ces.census.gov/data/
3 Income data from US Census American Community Survey, 2013-2018, https://data.census.
gov/cedsci
4 Population and age data from US Census American Community Survey, 2013-2018, https://
data.census.gov/cedsci
5 Local attractions and amenities count are based on a geospatial analysis using ESRI
landmarks dataset, https://www.arcgis.com/home/item.html?id=6ffa5cb05c3b4978bd96b8a4
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