June 3, 2019 by Margaret Jackson

Bisnow Survey: Opportunity Zones Will Not Help With Affordable Housing Crisis

Photo: Courtesy of Cushman & Wakefield

Opportunity zones will do little to create affordable housing in metro Denver and likely will cause gentrification in some of the city’s older, low-income neighborhoods, according to the majority of respondents in a recent Bisnow poll.

The poll revealed that 70% of respondents believe opportunity zones will cause gentrification in low-income neighborhoods, while 35% said they will not help to create affordable housing. Even though respondents do not think opportunity zones will result in affordable housing, 77% said the projects most likely to take advantage of opportunity zones will be multifamily.

Fidelity National Title Group Vice President and National Commercial Account Manager Erin Kelley, who responded that she plans to invest in an opportunity fund, said opportunity zones can help revitalize low-income areas.

“A multifaceted approach where private and public sectors work in concert to revitalize otherwise ignored areas improves poverty levels, invigorates businesses and empowers members of the community,” she said.

While most respondents don't believe that opportunity zones will help with the region’s affordable housing crisis, 80% think they will help create jobs in Denver’s low-income neighborhoods. One respondent said OZs will allow new capital to move into communities that never had it before.

Though 88% of respondents said they think opportunity zones are a realistic way for investors to defer capital gains, just 33% plan to invest in an opportunity fund and only 11% plan to create a fund. Eighteen percent of respondents said they plan to seek funding for a project in an opportunity zone.

“Hopefully this will allow some equity and inclusion into our city,” NINE dot ARTS co-founder and Studio Chief Molly Casey said.