Jay Parsons: OZ overview and effectiveness
Fascinating new economic research shows Opportunity Zones have created far more housing than previously known (313,000 units) and at far cheaper subsidy cost than most people realize ($26k/unit) -- making OZs perhaps the most efficient, effective housing supply creation program in existence.
I suggest we double down on what actually works, eh?
The groundbreaking research was published yesterday by the Economic Innovation Group. The authors concluded that OZ are "dominating other housing tax incentives" in terms of production and efficiency. OZs provide capital gains tax benefits to incentivize long-term investments (10+ years) in designated lower-income neighborhoods. Among their findings:
1) Prior to the legislation, the neighborhoods that became Opportunity Zones had been "left behind" -- economically challenged areas seeing no housing supply growth for a decade. Since then, we've completed 313,000 new housing units across OZs nationally, with more still under construction.
See chart below for an absolutely wild visual of this impact.
2) Opportunity Zone neighborhoods now outpace the national average in creating new housing supply. This is another crazy stat because "these are genuinely distressed communities," as one of the authors, Adam Ozimek, noted. He added that some reporting suggesting otherwise has centered around an "unrepresentative handful of outlier anecdotes."
3) OZs account for 48% of new housing in designated tracts, 16% across all low-income communities, and 4% of all new housing nationally. One of the report's authors, John Lettieri, wrote that "these are astonishingly large results" impacting not only urban areas, but also suburban and rural and in between.
4) At a subsidy cost of just $26k/unit, co-author Benjamin Glasner noted that OZs are "vastly cheaper than traditional housing subsidies" for taxpayers. "The results underscore that flexible, market-driven tax incentives can mobilize private capital, unlocking significant investment potential in distressed communities."
5) Why are Opportunity Zones so effective and efficient? Unlike other programs, OZ projects have a "by-right" qualification with no bureaucratic pre-approvals. It's a federal tax benefit that doesn't require approval from cities to tap into (other than standard permits etc. to build) or special connections to access.
It turns out simpler is better and faster.
We should incentivize the creation of things we need more of as society. We need more housing. So let's lean heavily on programs that actually work. And OZs clearly work well. Encouraging to see that HUD Secretary Scott Turner -- along with policymakers on both sides of the aisle -- want to extend and expand Opportunity Zones. Perhaps even to include for-sale homes in addition to rental apartments.
Bottom line: Opportunity Zones, in Glasner's words, "may be the most effective pro-housing supply policy in America today."
Let's double down on what actually works.
The Next Big Idea in Multifamily Real Estate: What’s Shaping the Future?
The multifamily real estate market is evolving fast, and developers who think ahead will define the next decade. The biggest opportunities right now aren’t just about building more units—they’re about building smarter, financing strategically, and investing where the market is going, not where it’s been.
Here’s what’s shaping the future of multifamily:
Office-to-Residential Conversions: A Billion-Square-Foot Opportunity
Vacant office buildings are piling up. Housing demand keeps rising. The solution? Convert obsolete office space into much-needed apartments.
-Conversions are up 357% since 2021. Cities are offering tax incentives to speed the process.
-Investors get lower acquisition costs in prime urban locations.
- The challenge? Not every building converts easily. But for the right deals, the upside is massive.
2. Attainable Housing: The Market is Asking—Who’s Answering?
Workforce and middle-income housing are the most underserved segments in real estate. As rents rise and homeownership feels out of reach, the demand for well-priced multifamily has never been stronger.
-Public-private partnerships and tax credits are making these deals work.
-The key? Delivering cost-efficient, high-quality housing that meets market needs.
- Why now? This sector is recession-resistant and offers long-term, stable returns.
3. Smart, Sustainable Development: The New Standard
Sustainability and technology aren’t just “nice to have” anymore—they’re critical for long-term value and tenant retention.
- Smart buildings reduce operating costs & increase NOI.
- Green financing incentives are rewarding energy-efficient development.
- Tenants expect tech-enabled, sustainable living spaces.
Developers who future-proof their assets will outperform those who don’t.
4. Innovative Financing: Smart Capital Structures Win
With traditional financing tightening, developers need to get creative.
-Alternative capital sources like EB-5 (pending policy updates), private equity, and build-to-rent funds are changing how deals get done.
-Structuring deals with smart capital stacks reduces risk and increases investor returns.
-The firms that master non-traditional funding strategies will have a major advantage.
Where We See the Future at Zerosixthree Development
At Zerosixthree Development, we don’t follow trends—we build ahead of them.
We strategically develop in underbuilt, high-growth markets before they peak.
We integrate forward-thinking technology and sustainability to future-proof our assets.
We structure innovative financing strategies to create strong risk-adjusted returns for investors.
The next big opportunities aren’t where everyone is looking today. They’re where the market is headed tomorrow.
If you’re thinking about investing in the next evolution of multifamily real estate, let’s connect. The future belongs to those who see what’s next—before everyone else does.
#Multifamily #RealEstateDevelopment #Investing #FutureOfHousing #Zerosixthree
Trump’s $5M ‘Gold Card’ Visa: The End of EB-5 as We Know It?
Trump has proposed ending the EB-5 Immigrant Investor Program and replacing it with a $5 million "Gold Card" visa, offering wealthy investors a green card and pathway to U.S. citizenship without job creation requirements.
Why End EB-5?
Since 1990, EB-5 has granted green cards to foreign nationals investing $800K–$1M in job-creating U.S. businesses. Despite attracting billions in capital, critics cite fraud and mismanagement as key failures, prompting Trump’s move to scrap the program.
The $5M Gold Card Visa
Instead of directing funds into businesses, investors would pay $5 million directly to the U.S. government. Trump claims this will boost the economy and reduce national debt, while critics argue it prioritizes wealth over merit-based immigration and may face congressional approval challenges.
Legal & Policy Hurdles
Immigration law experts doubt whether Trump can unilaterally implement the Gold Card visa without congressional approval. Additionally, investors from countries with strict capital controls (e.g., China) may struggle to participate.
Conclusion
Trump’s plan marks a major shift toward pay-to-play immigration. While it could bring in billions, it raises equity concerns and legal obstacles. The future of EB-5 investors with pending applications remains uncertain, making legal guidance essential.
Now is the time to build
Denver’s multifamily market is at a turning point—current oversupply is temporary, and with construction starts down 50%, the window for securing high-quality assets at the right basis is now. Our projects are positioned to capitalize on today’s market dislocation while anticipating future supply constraints, ensuring strong risk-adjusted returns. If you’re looking for strategic, well-structured multifamily opportunities in a tightening market, let’s connect.Contact us here to learn more.
Denver’s Multifamily Rollercoaster: From Oversupply to a Severe Shortage
Right now, Denver is experiencing a temporary oversupply of multifamily units, with elevated vacancy rates and softening rents. But that relief won’t last long. By 2025, the market will flip as new supply dries up and demand outpaces deliveries.
Here's the outlook:
2025: ~7,500 units projected (down from the 9,000-10,000 average)
2026: ~5,000 units projected
2027: Even fewer
Even more concerning—construction starts are down by 50%, meaning the development pipeline is collapsing. We can’t approve projects or build fast enough to make up the difference.
What does this mean?
The current oversupply will burn off by late 2025
Rents will rebound sharply as demand outstrips supply
Affordability pressures will return—likely worse than before
How do we prevent a long-term crisis?
Streamline approvals so projects can break ground faster
Incentivize new development with tax abatements & public-private partnerships
Push for zoning reforms that allow higher density & mixed-use projects
Attract capital back to multifamily with creative financing structures
United HQ?
https://www.msn.com/en-us/video/news/united-airlines-signals-possible-headquarters-relocation/vi-AA1yHHPy?ocid=socialshare&t=10
United Airlines Takes Off in Denver: Watch the Exciting Expansion Unfold!
Fully Entitled
Nearly four years have passed since we initiated the first SDP submission for 61st and Tower. Thanks to perseverance and collaborative efforts, we have successfully secured approval for 1,048 units at PENA Station Next. This trio of projects encompasses ELIO, a mixed-use podium experience; ESTELLE, a sophisticated resort-inspired community; and CASSINI, a vibrant mixed-use development situated at Aviation Place, adjacent to the light rail station and a 1.7-acre park. We eagerly anticipate breaking ground on these developments in the near future!
Welcome to Ground Up Insights
United Airlines is expanding its presence near Denver International Airport with a new flight training center and potential campus. This strategic location, adjacent to ZeroSixThree’s developments located at PENA Station Next underscores the growing significance of the area. The expansion promises job creation and further infrastructure investments, benefiting both United Airlines and surrounding businesses. For 063, this proximity presents opportunities to collaborate on community-building and growth initiatives as the region strengthens its aviation and development sectors.
For more details, visit the full article.