The Coming Opportunity Zone Investment Surge

New survey data indicates a likely surge in Opportunity Zone investing in 2027. What else is coming down the pike? Plus, the long-awaited 2025 OZ Holiday Gift Guide!

On this month’s episode of OZ NewsHour, Jimmy Atkinson and Andy Hagans break down the latest news and trends shaping the OZ landscape — including a thorough review of the Annual Opportunity Zones Survey Report for 2025.

Opportunity Zone News & Events

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

In this episode of OZ NewsHour, Andy Hagans and Jimmy Atkinson deliver their end-of-year program, covering brand-new proprietary survey data, OZ 2.0 policy guidance, recent industry events, and the third annual OZ holiday gift guide. The episode opens with headline findings from the 2025 Annual Opportunity Zones Survey, followed by a discussion of new Opportunity Zones 2.0 designation guidance from the Economic Innovation Group, updates from OZ Insiders, and a wide-ranging holiday segment tailored specifically to Opportunity Zone professionals.

2025 Opportunity Zones Survey Results

Jimmy walks through the newly released 2025 Opportunity Zones Survey, which was conducted in fall 2025 and published before the holidays. The survey included 169 participants, representing a mix of investors, fund sponsors, developers, professionals, nonprofits, government participants, and financial advisors. About 46% of respondents had already placed capital into Qualified Opportunity Funds, with most of those investors committing $500,000 or more, and more than half investing at least $1 million.

Jimmy highlights three major takeaways. First, OZ investors remain largely satisfied, consistent with prior years. Approximately two-thirds of respondents said they are satisfied or very satisfied with their OZ investments so far, while 24% reported mixed feelings and only 9% expressed dissatisfaction. Second, the survey captured new sentiment around OZ 2.0 for the first time, since the prior year’s survey closed before the election and before passage of the One Big Beautiful Bill Act. Third, the data points toward a likely surge in OZ investment activity.

Tax advantages once again ranked as the primary reason respondents invest in Opportunity Zones. Roughly half of participants reported using a self-directed Qualified Opportunity Fund structure, with a significant portion also investing in third-party funds.

Jimmy also reviews sector data. Residential remains the dominant OZ sector, with 75% of investors reporting exposure. Mixed-use ranked second at 36%. Industrial showed the most notable year-over-year growth, doubling from 14% last year to 28% this year. Other sectors represented include hospitality, operating businesses, office, retail, infrastructure and energy, agriculture, mobile home parks, and self-storage. Within residential, multifamily remains the largest subsector, with meaningful participation in single-family rental and build-to-rent strategies.

OZ 2.0 Sentiment and Investment Outlook

For the first time, the survey measured investor sentiment around OZ 2.0. Sixty-three percent of respondents said they are satisfied or very satisfied with the legislation, about one-third reported mixed feelings, and only 3% said they are dissatisfied. Jimmy notes that mixed feelings are expected, given that not every desired provision made it into the final bill.

When asked about the most attractive new OZ 2.0 incentives, the rolling five-year deferral ranked first, selected by 46% of respondents. The enhanced rural incentives were also popular: 30% favored the 30% basis step-up for rural OZ investments, and 18% selected the reduced substantial improvement threshold for rural projects. Only 6% chose the new 10% basis step-up for non-rural investments as their top incentive.

The most disappointing outcome cited by respondents was the lack of an extension of the original deferral deadline beyond 2026 for existing OZ investors. Others expressed concern about tighter eligibility criteria under OZ 2.0.

The headline statistic from the survey is that 76% of respondents said OZ 2.0 is likely to increase their investment activity. Looking ahead, 34% said they are likely or very likely to invest in Opportunity Zones in 2026, while 53% said they expect to invest in 2027, supporting the view that a larger investment surge may occur once new zones are designated and in effect. Nearly three-quarters of respondents also said they are more likely to invest in rural areas because of the enhanced rural incentives.

Andy adds that while 2027 may see the largest surge, 2026 could still experience meaningful activity as investors take advantage of remaining OZ 1.0 rules before they sunset.

OZ Insiders Momentum and Upcoming Masterclasses

Jimmy and Andy discuss recent in-person engagement with the OZ community, including a 70-person OZ Insiders dinner held in Las Vegas the night before the Novogradac Opportunity Zones Summit. The group included attorneys, accountants, developers, entrepreneurs, and investors. Andy notes that OZ Insiders membership has nearly doubled over the past year, approaching 90 members.

They preview upcoming Masterclasses, including Jimmy’s OZ Outlook for 2026 on January 12, which will cover survey findings, key 2026 timelines, zone designation timing, and capital markets expectations. This will be followed by a February 9 Masterclass focused on maximizing OZ 1.0 deals. Andy emphasizes that the group is actively covering both OZ 1.0 and OZ 2.0 strategies.

EIG OZ 2.0 Designation Guidance for States

The episode then turns to newly released OZ 2.0 designation guidance from the Economic Innovation Group. Andy introduces the guide, authored by Kenan Fikri, John Lettieri, and Catherine Lyons, and notes its importance as states and governors prepare for the upcoming designation process.

Jimmy explains that the guide is already being used by state-level decision-makers and should be in the hands of every governor’s office. He summarizes the eight principles outlined in the guidance: getting a head start, setting a statewide economic vision, designating a lead coordinating entity, engaging local partners, balancing economic need and investment potential, combining quantitative and qualitative insights, embracing transparency, and aligning OZ nominations with supportive policy tools.

Both hosts stress that the OZ 2.0 designation process will differ significantly from OZ 1.0, which was rushed in late 2017 and early 2018. This time, states will have more lead time and a more informed stakeholder base. Andy encourages listeners to get involved at the state level, noting that individual voices can still have meaningful influence during the designation process.

2025 OZ Holiday Gift Guide

The episode closes with the third annual OZ holiday gift guide. Andy and Jimmy recommend several OZ-themed gifts, starting with Novogradac offerings, including conference registrations, the Opportunity Zones Working Group, and a subscription to the Novogradac Journal of Tax Credits. Jimmy describes the working group as a tool for “power users,” including attorneys, accountants, fund managers, and developers.

Andy recommends the book Building Small for developers working on projects under $10 million, highlighting its multidisciplinary approach to ground-up development. His travel pick for the year is the Seiko 5 GMT watch, which he describes as a practical, well-made mechanical GMT watch suited for frequent travelers.

Jimmy shares his picks for podcast studio equipment, including the Sony FX3 and Sony A7 III cameras, a Sigma 24–70mm f/2.8 lens, and the Shure SM7B microphone, which both hosts use. They conclude the gift guide with a recommendation to give the gift of OZ Insiders membership, noting that current members can lock in existing pricing before an increase next year.

Picks of the Year and Closing

For their final segment, Jimmy names a Novogradac Summit recap article written by Jason Watkins as his pick of the year, while Andy highlights a policy brief by Jill Homan for the America First Policy Institute focused on best practices for state-level OZ 2.0 implementation. Both emphasize transparency and stakeholder engagement as critical themes.

Merry Christmas and Happy New Year from all of us at OZ NewsHour!