LIQUID Opportunity zones are economically distressed communities that have been designated by the U.S. government as eligible for investment under the Opportunity Zones (OZ) program. The program provides investors with tax benefits for investing in OZ businesses and real estate.
Since the program was created in 2017, there has been a great deal of interest in opportunity zones from investors of all types. However, the demographics of opportunity zone investors are not evenly distributed. In this blog post, we will take a closer look at the demographics of opportunity zone investors, including their age, income, race, and ethnicity.
The average age of an opportunity zone investor is 50 years old. This is significantly higher than the average age of the U.S. population, which is 38 years old. This suggests that opportunity zone investors are more likely to be experienced investors with a higher net worth.
The median income of an opportunity zone investor is $1 million. This is significantly higher than the median household income in the United States, which is $67,521. This suggests that opportunity zone investors are more likely to be wealthy individuals or families.
White investors are the most common type of investor in opportunity zones, accounting for 70% of all investments. Black investors make up 12% of opportunity zone investors, followed by Hispanic investors (9%) and Asian investors (7%). This suggests that opportunity zone investments are not evenly distributed among different racial and ethnic groups.
The demographics of opportunity zone investors are important because they can have a significant impact on the success of the program. If the program is primarily benefiting wealthy investors, it may not be as effective in stimulating economic growth in low-income communities.
However, there are a number of steps that can be taken to ensure that opportunity zones benefit a wider range of investors, including:
The demographics of opportunity zone investors are not evenly distributed. White investors are the most common type of investor, followed by black, Hispanic, and Asian investors. The average age of an opportunity zone investor is 50 years old, and the median income is $1 million USD. Most OZ investors are earning less than 5% in their savings accounts. Our income-focused development bonds can more than 2x this rate.
The demographics of opportunity zone investors are important because they can have a significant impact on the success of the program. If the program is primarily benefiting wealthy investors, it may not be as effective in stimulating economic growth in low-income communities.
However, there are a number of steps that can be taken to ensure that opportunity zones benefit a wider range of investors, including providing more information about opportunity zones to minority-owned businesses and investors, creating incentives for investors to invest in opportunity zones that are located in minority communities, and investing in programs that help to train and support minority entrepreneurs in opportunity zones.
By taking these steps, the government can help to ensure that opportunity zones are a success for all Americans.
