With many major asset classes at or near all-time highs, is a perfect storm brewing for Opportunity Zone investing?
Plus, a recap of recent Opportunity Zone events, and a preview of upcoming events.
Opportunity Zone News & Events
- High Asset Prices: SPY | BTC | GOLD
- Lumber Prices Are Flashing a Warning Sign for the U.S. Economy (WSJ)
- Scaramucci Struggles to Spin a Trump Tax Break Into Profit for Clients (Bloomberg)
- OZ Insiders Fort Worth Dinner
- OZ Insiders calendar of upcoming events
- HUD Innovative Housing Showcase
- OZ 2.0 Cheat Sheet
- OZ Pitch Day - November 13, 2025
About OZ NewsHour
OZ NewsHour covers the key stories happening right now in the world of Opportunity Zones. Hosts Andy Hagans and Jimmy Atkinson discuss the powerful trends that investors, fund managers, real estate developers, and industry professionals need to know. If it's a must-know development in the Opportunity Zone world, we cover it here.
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Episode Summary
With the stock market, crypto, and commodities all trading near record highs—and interest rates beginning to fall—are we entering a “perfect storm” for Opportunity Zones? In this September 2025 edition of OZ NewsHour, co-hosts Andy Hagans and Jimmy Atkinson dig into the macro environment, investor psychology, and the unique moment the industry faces as OZ 1.0 sunsets and OZ 2.0 begins.
Andy frames the conversation with his theory: the ingredients that Opportunity Zone investing requires are suddenly aligning. On the one hand, investors and family offices are sitting on large unrealized gains across multiple asset classes. On the other hand, developers are beginning to see projects “pencil” again thanks to lower lumber costs and the expectation of further rate cuts. Together, these two forces may collide in 2026, creating ideal conditions for OZ investing.
Jimmy acknowledges the strong tailwinds and pushes Andy to define what he means by “perfect storm.” Andy explains that even though the economy shows some shakiness in the jobs report, investors are wealthier on paper than they were six months ago. Stock portfolios are up. Bitcoin is near all-time highs. Gold has outpaced Bitcoin year-to-date. For many investors, regardless of their asset class preferences, 2025 has been a winning year. That means capital gains are abundant and ready to be harvested.
On the developer side, Andy points out that costs have been a major barrier in recent years. While high interest rates were painful, the bigger hurdle was runaway inflation in materials and labor. Lumber and other key inputs are now trending downward. Wage growth is softening along with a weakening labor market. Developers who previously shelved projects may find that deals are beginning to pencil once again.
Jimmy adds historical context: Opportunity Zones lost some of their original luster when the 10% and 15% basis step-ups expired after 2021. That timing coincided with the inflationary, higher-interest-rate environment that made development more difficult. Investor appetites soured, not only because the incentives were weaker, but because the macro environment was far less favorable. If those headwinds continue to ease, OZ activity may rise again in 2026—even without OZ 2.0.
The hosts then ask: will investors wait until 2027, when OZ 2.0 formally launches with new benefits, or will they act sooner? Andy argues for what he calls the “both/and strategy”—deploying some capital in 2026 and holding some for 2027. Jimmy jokingly reminds Andy that he had earlier dubbed it “OZ double dipping.” Andy runs with the analogy, calling it the “surf and turf” strategy: order one of everything on the menu. Trigger some gains in 2026, invest in OZ 1.0 deals while they last, then do more in OZ 2.0 when it arrives.
Jimmy lays out three key reasons not to wait until 2027:
- Starting the 10-year clock sooner. The earlier you invest, the earlier you can hit the 10-year mark for tax-free appreciation.
- Not letting the tax tail wag the dog. If rebalancing into real estate makes sense now, don’t delay just for tax reasons.
- Certainty over the current map. The 2018-designated zones are known today, but the 2027 map remains unknown. Investing now avoids the risk that your preferred areas aren’t designated next time.
Andy underscores that for many investors, this is not an either/or decision. With gains spread across different asset classes, they may have enough to invest now and again later. As he puts it, “I’m a both/and guy.”
The conversation shifts to the recent Bloomberg article on Anthony Scaramucci’s SkyBridge Opportunity Zone REIT, which carried the headline: “Scaramucci’s bet on fund targeted at poor areas turns into bust for clients.” The article noted that instead of raising $3 billion, the fund raised under $50 million, and instead of a diversified portfolio, it invested in just one project: a Virgin Hotel property in New Orleans. That project has underperformed to date.
Jimmy characterizes the piece as a “hit job,” likely political in nature, but acknowledges it raises a fair point. Even high-profile OZ funds can disappoint. Real estate development is risky, and the OZ tax benefit only matters if the deal makes money. “Buyer beware” applies, even with celebrity-backed sponsors. Andy agrees, noting that illiquid alternative investments must be evaluated over a full cycle, often 10 years, before declaring success or failure. Still, the reminder is useful: Opportunity Zones are powerful, but they are not magic.
Next, the hosts celebrate the OZ community. Jimmy highlights OZ Insiders’ recent private dinner in Fort Worth, TX, held at the Hotel Drover with 11 attendees from across the ecosystem, including investors, developers, consultants, and attorneys. He previews the next dinner in December in Las Vegas, the night before the Novogradac OZ Summit. Andy also spotlights the upcoming slate of OZ Insiders masterclasses, including:
- Rural incentives under OZ 2.0 with Mr. Ashley Tison (the “OZ Sherpa”).
- Preparation strategies for QOFs.
- How to lobby effectively for OZ 2.0 designations.
The episode also shines a spotlight on Jill Homan, an OZ Insiders member who spoke on a panel at HUD’s Innovative Housing Showcase on the National Mall. Jill joined Alfonso Costa, Jiran Smith, and HUD Secretary Scott Turner to discuss innovative housing solutions and the role of Opportunity Zones in expanding the capital stack for housing projects nationwide. Jimmy applauds Jill for representing the OZ industry so well on a national stage.
In the Pick of the Month segment, Jimmy introduces his new OZ 2.0 Cheat Sheet—a one-page downloadable reference comparing OZ 1.0 and OZ 2.0 provisions. It lays out the five major differences and provides a simple comparison table. He encourages listeners to print it out, tape it to their wall, or keep it handy at their desk. Andy highlights Jimmy’s 93-minute OZ 2.0 deep dive masterclass, available on-demand to OZ Insiders members, calling it “cornerstone content” for anyone preparing for OZ 2.0.
Finally, the hosts engage with live audience questions. For newcomers like Mark, who only just learned about OZs, Jimmy points to the free OZ Investing Guide on OpportunityZones.com and encourages registration for OZ Pitch Day on November 13, 2025. Green Street will headline with its Brooklyn multifamily project, alongside many other sponsors presenting deals and educational content.
The episode wraps with Andy and Jimmy reflecting on where the industry stands: OZ 1.0 winding down, OZ 2.0 gearing up, and a macroeconomic environment that could unleash unprecedented levels of activity. If 2026 is indeed the “perfect storm,” Opportunity Zone investors and developers may be heading into one of the most pivotal years yet.