• Opportunity zones were created as part of the Tax Cuts and Jobs Acts of 2017 to stimulate long-term private investments in low-income urban and rural communities. By providing tax benefits, opportunity zone investments promote economic growth.

• Qualified opportunity zones have generated an enormous amount of economic activity nationwide.

• Independent, third-party analysis has revealed the dramatic impact of opportunity zone developments.

The success of nine OZ developments is a case study for the nation.

FTI Consulting, a global business consulting leader, assessed the fiscal impacts of nine Capital Square multifamily development projects built in opportunity zones designated by state governors following the Tax Cuts and Jobs Act of 2017.

The analysis summarized the potential economic benefits resulting from the construction and operational phases of the projects, with projected results including:

• 2,010 jobs supported annually during the construction phases of the projects

• $197 million in GDP annually during the construction phases of the projects

• $41 million in total tax revenues annually during the construction phases of the projects

• 345 jobs projected to be supported annually from ongoing operations

• $81 million in GDP projected annually from ongoing operations

• $17 million in total tax revenues projected annually from ongoing operations

Furthermore:

• OZs across the nation have delivered a significant housing boost: An increase of 313,000 new residential addresses in designated communities from Q3 2019 to Q3 2024 can be attributed to opportunity zone incentives.

• OZs have created cost efficiencies: The subsidy cost for new housing directly attributable to OZs was a fraction of traditional housing programs’ costs.

Why Invest in OZs Now?

• TAX ADVANTAGES THAT GROW WITH TIME - Qualified opportunity zone fund (QOF) investments can provide tax deferral and the potential for permanent elimination of capital gains taxes if held for at least 10 years.

• A GATEWAY TO REAL ESTATE INVESTMENT - Capital gains from the sale of any type of appreciated asset can be reinvested in a QOF to achieve tax deferral and exclusion of capital gains taxes. This includes sales from stocks, bonds, mutual funds, real estate, businesses, art, cryptocurrency and more.

• AN ANSWER TO THE HOUSING CRISIS - Multifamily rental demand is skyrocketing across the United States, and opportunity zones are answering that demand. Moreover, amid the creation of new housing, not a single resident has been displaced by OZ development work.

• DEMAND FOR QOFs REMAINS HIGH - Don’t wait on Congress to determine the future of OZs. The program has proven its success. Qualified opportunity zone funds experienced a robust start to 2025, and the momentum is in investors’ favor.

What’s Next for Opportunity Zones?

While the original Act is set to expire in 2026, legislation has been introduced to not only extend but also to expand the demonstrated effects of the Tax Cuts and Jobs Act.

Members of the Capital Square team have been active voices in industry groups and government conversations, sharing the successes of our opportunity zone program as well as recommendations for further empowering the legislation.

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This article originally appeared on Capital Square's website.