Jacksonville, FL, is the 12th most populous city in the country, with an estimated population of 1,330,000 as of 2023 with a 1.22% annual growth rate.
This makes it an attractive destination for real estate investors, homebuyers, and renters alike. But what are the current trends in its real estate market? And how can you take advantage of them to achieve your goals?
Keep reading for answers.
Home Prices and Sales Moderate but Remain High
Jacksonville home values rose 10.2% year-over-year in July 2022, according to the S&P Case-Shiller home price index. Appreciation slowed from a peak of 21% in February 2022. The median sale price also moderated to $315,000 in July.
However, the sale price remained 11% higher than the previous year.
While sales dipped 13% from 2021, they remain in line with pre-pandemic levels. Moderating demand gives buyers more choices, but prices remain elevated.
Inventory Is Low
The supply of homes for sale in Jacksonville, FL, is not keeping up with the demand. The inventory of active listings in 2021 was 59.4% lower than the last year. The median days on the market were 29 days, down from 46 days last year.
This means sellers have more leverage and can negotiate higher prices and better terms. On the contrary, buyers must act fast and compete with multiple offers.
Rental Demand Is High
The rental market in Jacksonville, FL, is also booming as more people are moving to the city for work, education, or lifestyle reasons. According to RentCafe, the average rent in Jacksonville, FL, was $1,266 as of August 2021, up 15% from the previous year. The occupancy rate was 96%, indicating a strong demand and a low vacancy rate.
This means rental property owners can enjoy higher income and lower turnover rates. On the downside, those looking to rent have to pay more for their housing and face limited options.
Investment Opportunities Are Abundant
The Jacksonville, FL, real estate market offers a variety of opportunities for investors looking for cash flow, appreciation, or both. The city has a diverse economy, a significant military presence, and a growing population. It also boasts a favorable tax climate.
Jacksonville also has a high quality of life. Residents enjoy easy access to beaches, parks, cultural attractions, and sports venues. These factors make it appealing to both local and out-of-state investors looking to drive high returns. All they'd need is the right housing marketing strategy.
Strong Local Economy Supporting House Values
Major employers like financial services, military, logistics, and healthcare provide stability. The unemployment rate sits at just 2.1% as of December 2022. High-paying jobs and business expansions attract new residents.
With a solid economic foundation, the real estate frenzy does not appear to be a bubble. Price and rent increases are supported by employment growth.
This is a positive signal for a real estate investor looking to invest in a market with sustained values. If the economy remains resilient, the market will stay healthy long-term.
Tailored Advice on the Jacksonville, FL, Real Estate Market
Navigating Jacksonville's competitive real estate market takes expertise. As a leading property management company, Jacksonville Property Management tracks real estate market trends to best serve our clients. This allows us to give our clients a competitive edge in the local market.
Get in touch with our team for tailored advice on buying, selling, or renting in Jacksonville, FL.