Source: Urban Land Magazine

Date Published: 09.22.2025

Link: What’s Next for Opportunity Zones: A Brighter Future for U.S. Multifamily Development

Congress has extended the Opportunity Zone (OZ) program beyond 2026, reinforcing its role in addressing the U.S. housing shortage by channeling private capital into economically distressed areas. Created under the 2017 Tax Cuts and Jobs Act, OZs offer investors long-term tax incentives that have already driven over $100 billion into multifamily development, accounting for 20% of new units nationwide in 2023. Developers like Milhaus demonstrate how OZs deliver housing more cost-effectively than traditional subsidies while revitalizing underutilized neighborhoods, creating jobs, and expanding local tax bases. Although many projects are market-rate rather than strictly “affordable,” their scale boosts overall housing supply, easing affordability pressures and stimulating broader community development. This market-driven, public–private model highlights OZs as a sustainable tool for long-term urban revitalization and equitable growth.