No, you do not need to live in a Qualified Opportunity Zone (QOZ) to take advantage of the tax incentives. The tax incentives are available to any taxpayer who invests the amount of a recognized eligible gain in a Qualified Opportunity Fund (QOF) and elects to defer the tax on that gain. This means that you can benefit from these tax incentives even if you do not live, work, or have an existing business in a QOZ. The primary requirement is that the investment must be made in a QOF, which in turn invests in QOZ property.
Sources:
IRS Announces First Wave of Opportunity Zone Designations
Rev. Rul. 2018-29
FS-2020-13
Does FIRPTA Apply to Investments in Opportunity Zones?
Opportunity Zones: A New Tax Incentive for Investment in LICs