Multifamily development: A bright spot in opportunity zone initiative
While transaction volumes do not appear to have an impact on aggregate demand, demand has shifted around in some ways and there are meaningful localized impacts, including the rise in development site acquisitions since the start of the opportunity zone program, reported CBRE.
Total investments in opportunity zones since the creation of incentives (Q1 2018) have accounted for 10.5 percent of overall U.S. transaction volume.
The share of volume in these zones remains largely unchanged compared with the 18 months prior to the program (10.7 percent). Furthermore, annual volume growth in opportunity zones has been quite reflective of the broader market throughout the entire cycle, even during the past 18 months (6.7 percent vs 7.2 percent) when compared with the preceding 18 months.
Multifamily site investment accounted for 35.1 percent of all development site buying in first quarter 2018 through second quarter 2019. In the prior 18-month period, multifamily represe