2024 Opportunity Zones Survey Reveals Investor Satisfaction, And The Need For A Program Extension

The 2024 Annual Survey Report On Opportunity Zones, conducted by OpportunityZones.com, reveals significant optimism and satisfaction among investors in the OZ program. With responses from 251 participants — including investors, developers, government officials, and other stakeholders — the survey provides insights into investor motivations, investment structures, sectors receiving investment, and the need for program reform and extension.

 

 

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“Opportunity Zones have proven their value, delivering real returns for investors and transformative development in communities that need it most,” said Jimmy Atkinson, founder and CEO of OpportunityZones.com. “This year’s survey results highlight a strong desire to invest more, yet ongoing legislative uncertainty remains a hurdle. Extending the program would send a powerful signal, enabling more investors to confidently fuel projects that benefit both their portfolios and the neighborhoods they touch.”

High Satisfaction Among Investors

A substantial 64% of investors reported being satisfied or very satisfied with their Opportunity Zone investments so far. This satisfaction largely stems from the tax advantages OZs offer, a benefit cited as the primary reason for investment by nearly two-thirds of investors. In addition, the survey highlighted that almost half of investors have committed at least $1 million to OZs, and nearly two-thirds have invested at least $500,000. This level of financial commitment underscores the strong confidence in OZs as a vehicle for compelling after-tax returns, portfolio diversification, and social impact.

Investment Trends and Preferences

Residential real estate emerged as the leading sector for OZ investments, with 67% of investors directing funds into this sector. Within residential investments, multifamily properties are the preferred subtype, attracting 81% of residential real estate investors. The popularity of residential projects reflects a broader trend of OZs contributing to community development and housing availability in economically distressed areas. Other favored sectors include mixed-use developments, hospitality, and operating businesses, demonstrating the program’s diverse appeal.

Challenges And The Need for Reform

Without an act of Congress, the Opportunity Zone tax policy is scheduled to sunset after 2026. Despite the positive sentiment, this uncertainty around the future of the Opportunity Zones program poses a barrier to new investments.

Survey participants indicated that their two biggest reasons for being hesitant about making new OZ investments were: 1) uncertainty about the program’s future; and 2) the current deferral period ending in 2026 is too short. Both of these concerns would be addressed by reform legislation to extend the OZ program by at least two years.

An overwhelming 76% of respondents expressed that they would likely make new OZ investments if such an extension were to be enacted. This finding highlights the potential for legislative reform to enhance the program’s effectiveness and longevity.

“Opportunity Zones continue to be one of the most impactful incentives available for investors seeking both solid returns and meaningful community revitalization,” said Andy Hagans, host of OZ NewsHour. “This year’s survey confirms that OZ investors are highly satisfied with the program’s tax benefits and potential for social impact, but the message is clear — certainty around the program’s future is crucial. Extending the OZ deadlines would not only unlock more capital but also empower investors to drive sustained growth and transformation in underserved areas all around this great country of ours.”

Conclusion

The 2024 Annual Survey Report On Opportunity Zones shows that while the OZ program enjoys strong support and satisfaction among current investors, further growth may hinge on addressing legislative uncertainties. With reforms extending timelines and solidifying tax benefits, Opportunity Zones could continue to attract substantial investment, driving both economic development and community revitalization across the United States.

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