Is Jacksonville The Hottest Real Estate Market For Investment?

Will real estate prices decrease in Jacksonville, FL? The answer is no. At this moment there is an enormous development going on in the Jacksonville real estate market. The median price of Jacksonville properties has increased by roughly 6.2% over the past year. This is a significant increase in home values for real estate owners who have invested in Jacksonville real estate.

It is currently a hot seller’s real estate market. Jacksonville housing market has an ideal environment for investors, especially for turnkey real estate investments. Experts predict a positive trend in the near future and buying a property in Jacksonville appears to be a profitable investment.

Florida’s economy is expected to grow this year at a rate faster than the nation’s overall. There are also strong indicators of low property vacancies, rising rents, and single-family rental unit developments in Jacksonville. These factors are known to attract real estate investors into a city.

There are more than 500 neighborhoods within the area of Jacksonville. As with much of Florida, tourism is also important to the Jacksonville economy, particularly related to golf. The greater Jacksonville area can realistically aspire to become the “highest performing economy in the country” over the next five years, according to an Elevate Northeast Florida report.

In the last 12 months, the Jacksonville real estate has appreciated at over 6%, and this is a strong signal for real estate investors looking to invest in the city. This year’s real estate appreciation rate is predicted to hover around 2%. On the other hand, the home prices are expected to flatten nationwide, increasing by just 0.8%, and buyers will continue to move to affordability, benefiting mid-sized markets.

Let’s learn more about Jacksonville and find out why one should invest in this affordable and sizzling real estate market. These things make Jacksonville real estate market stand out when it comes to choosing a place to invest in 2020 and beyond.

Table of Contents Why Is Jacksonville Real Estate Market So Hot For Investment?

ABOUT JACKSONVILLE, FLORIDA Jacksonville is the largest city in the continental United States with over 840 square miles. It is the most populous city in Florida as well as the southeastern United States. The Jacksonville metropolitan area is the fourth largest metropolitan area in Florida. Jacksonville is a major military and civilian deep-water port. Its estimated population is 903,889 according to the most recent United States census estimates. The current Jacksonville metro area population is 1.5 million. The overall median age is 35.8 years, 34.6 years for males, and 37.2 years for female – Worldpopulationreview.com Ranked #26 in Job Growth – Forbes. Ranked #22 in “Best Places for Business and Careers” – Forbes. JACKSONVILLE HOUSING MARKET STATISTICS The most prevalent building type in Jacksonville is single-family detached home. The city has a mixture of owners and renters, with 54.76% owning and 45.24% renting – “Neighborhoodscout.” There are more than 500 neighborhoods within Jacksonville’s vast area. Additionally, greater Jacksonville is traditionally divided into several amorphous areas, comprising large parts of Duval County. Jacksonville real estate has appreciated by 31.83% over the last 10 years. Which amounts to an average annual home appreciation rate of 2.8%. Median home value is $195,692 – Zillow. The market is currently very hot – It is a seller’s real estate market. 17.8% Listings had a price cut in Jan 2020. 1.4% 1-yr forecast till March 2021. Average days on market is 84. Jacksonville rental real estate market remains healthy and affordable for most renters. The median rent price in Jacksonville is $1,345. Researchers are predicting there will also be a housing shortage in Jacksonville and other parts of Northeast Florida. JACKSONVILLE’S ECONOMIC & JOB GROWTH INDICATORS Jacksonville’s economic activity is diversified. Significant factors in the local economy include services such as banking, insurance, healthcare, information services, manufacturing, biomedical technology, and logistics. Leading port in the U.S. for automobile imports. Leading transportation and distribution hub in the state of Florida. Jacksonville is home to the headquarters of four Fortune 500 companies. The city’s manufacturing base provides 4.5% of local jobs, versus 8.5% nationally. Professional and business services are the fastest-growing sectors, followed by construction and mining and leisure and hospitality. Florida’s economy will grow this year at a rate faster than the nation’s overall – Forecast by University of Central Florida. Low unemployment rate of 3% as on Feb 2020 – U.S. Bureau of Labor Statistics. Average weekly wages for all industries in Jacksonville Metro Area are $958 (U.S. = $1,093).

Jacksonville Real Estate Market Forecast 2020 – 2021

What are the Jacksonville real estate market predictions for 2020? The Jacksonville real estate market forecast is that home prices will increase by 1.4% in the next twelve months.  Let us look at the Jacksonville price trends recorded by Zillow over the past few years. Since 2015 the median home price in Jacksonville has increased from $133,000 to $195,692, up by 47.14%.

The cumulative appreciation rate over the ten years has been 31.83%, which ranks in the top 40% nationwide. This equates to an annual average Jacksonville house appreciation rate of 2.80%. The home prices in Jacksonville are near the national average for all cities and towns in the United States.

Here is a snapshot that shows the median home values in some of the popular neighborhoods in or around Jacksonville.

NAME	MEDIAN PRICE (Zillow)
Southside	$255,900
Springfield	$151,800
Downtown Jacksonville	$98,200
29th and Chase	$66,100
East Jacksonville	$63,100
Mixon Town	$54,200
Phoenix	$54,000
Mid-Westside	$52,300
New Town	$52,000

Jacksonville is currently a seller’s real estate market – indicating that there are more real estate buyers in the market than there are sellers. When demand is higher than the supply, home prices increase, which benefits sellers.

Here is the Jacksonville real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 1.4% till March 2021.

Jacksonville Housing Market Trends

Analyzing real estate data from multiple sources gives us a much broader perspective of the direction in which a market is moving. We shall now discuss some of the most recent housing trends in the Jacksonville area from multiple sources and compare it with the past couple of years.

We shall mainly discuss about median home prices, inventory, growth and, neighborhoods, which will help you understand the way the local real estate market moves in this region.

Note: Currently, we are unable to predict what might be the impact from the ongoing pandemic on the real estate market. So we shall keep that factor aside as things are changing on an hourly basis. It is simply too soon to predict anything. 

Jacksonville is the 50th most walkable large city in the US. It has minimal public transportation and does not have many bike lanes. The most walkable Jacksonville neighborhoods are Downtown, Riverside and San Marco. Jacksonville has a mixture of owner-occupied and renter-occupied housing units. It is a big rental property market.

According to Movoto.com, Jacksonville’s current home resale inventory number is 3047, which has decreased by 2% since last year. The median list price per square foot in Jacksonville is $132. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in April 2020.

In terms of months of supply, the Jacksonville market can tip to favor buyers if the supply increases to less than six months of inventory. However, looking at the current trends, we don’t see things moving in that direction.

1. A Growing Population

Without people there’s no real estate. So, a steady population growth in Jacksonville, FL offers the perfect market for real estate investments. Jacksonville is the largest city in the state of Florida and the largest city by area in the contiguous U.S. It is 12th most populous city in the United States.

Jacksonville had the country’s seventh largest population growth last year, and the largest in Florida, new estimates of city population changes from the U.S. Census Bureau show.

The estimates say the city gained 12,153 people between July 2017 and last July, raising Jacksonville’s total population to 903,889. With this trend, Jacksonville faces a successful future for its businesses.

2. Long-Term Returns On Real Estate

Unlike stocks, real estate protects your money and offers long-term returns. Real estate in Jacksonville is getting tight thanks to its immense popularity and continuous growth. The inventory is dipping and there is a good chance to get property now at reasonable costs. This may be on ascent soon, so if there’s a better time to grab the opportunity in Jacksonville real estate market; it is now.

3. The Future of Jacksonville Looks Bright

In Jacksonville, the availability of jobs is set to increase by 42% in the next ten years. A wise move by investors in the Jacksonville real estate market would be to buy properties now to take advantage of that growth and rising housing need. More jobs in Jacksonville means more people would like to live in this city and therefore, they need good housing facilities.

4. Jacksonville Is A Great Place To Live For Families

In rental markets with numerous single grown-ups, rent turnover is generally high. In this way, property investors are likely to work more with renters and buyers with families since these people secure long-term leases. Jacksonville is one such city that pulls in and keeps families complete with top-notch schools, recreational facilities, high tech transport and other resources for the residents.

5. Jacksonville Real Estate Prices Are Affordable

Jacksonville consistently features in the rundown for real urban communities with a low cost of living. Housing, especially in a few territories, is stunningly affordable as compared with the numerous different urban areas on the East Coast. The cost of living isn’t just lower than the U.S. national average, but at the same time it’s lower than Florida average.

Ever since the recession, home prices in the country have generally reduced. This may be normal in other areas, but if you get in a tropical coastal region, you are lucky. In Jacksonville, people are investing with just under a hundred thousand dollars to buy and revamp a property.

This amount is only two thirds the revamping costs as well as the national median. There is hardly a probability that you’ll lose when you buy property at lower prices than the replacement cost, which is what is currently going on in Jacksonville real estate market.

6. Economic Growth

Jacksonville’s economy is completely diversified and just continues developing. Jacksonville is home to numerous fortune 500 organizations and different businesses which give employment to the present and future. This implies individuals can hold their rents and home loans under wraps.

Neither the state of Florida nor the city of Jacksonville has an income tax imposed. Furthermore, with a low-level corporate tax rate of just 4.458% (reduced from 5.5%) in the state of Florida, you can see why it’s attractive to businesses.

7. It Has Desirability

Given the same employment prospects, most people will go for a better way of life. A warm, green radiant urban community is more attractive than a cold grey city. And that is what Jacksonville, FL offers. Plus, with regards to the most alluring regions in the US, the Florida Coast is best of all and Jacksonville is no exception.

8. Supply and Demand

As said earlier, the Jacksonville populace is growing. However, the real estate stock is plunging. An unmistakable sign that demand, may, in one way or another supersede supply in Jacksonville real estate market. The rate of building homes and property here has dependably been low over the years which has created a supply vacuum in the city.

9. The City Is Safe

Security is one major factor influencing real estate and property development at any place and anytime. In the event that the place you choose to invest is brimming with crimes and catastrophic events, you wager you’re not going to get a decent market for your property.

Jacksonville is the direct opposite of this. In Jacksonville, the crimes have gone down. At the turn of the millennium, Jacksonville’s Duval county held the title of “murder capital” of Florida and did so for 11 years. Since then, crime has gone down, and Jacksonville is no longer the top offender in the state.

The good news is the point at which you contrast Jacksonville with different urban areas that are of similar size, the crime rate normalizes and it hovers near the average for every single other area of comparative size.

10. Employment Growth

Jacksonville records high employment rates due to the availability of good employers and more investors chipping in. Statistics show that the latest unemployment rate in Jacksonville is 3%. Lower unemployment rate going to continue even in the coming years, and it has a direct impact on population growth and economic stability which makes it perfect for real estate investments.

11. The Beach Factor

Who doesn’t love beaches? No matter where you live in Jacksonville you’re likely not much more than a hop and a skip from miles of beaches. Residents in most areas of the city can reach the beach in less than an hour, depending on traffic. This is one of the pros of living in Jacksonville, FL.

12. The Parks

The city of Jacksonville operates the biggest urban stop framework in the United States, with 262 assigned parks and more than 80,000 acres of land. Every one of the parks brings their own particular characteristics, from the quiet tranquility of the different parks in Riverside to the rich history of Downtown’s Hemming Plaza, the city’s first park.

Where To Invest In The Jacksonville Real Estate Market?

We took this data from Neighborhoodscout.com, to find out some of the best neighborhoods where you can invest in the Jacksonville real estate.

1. Riverside/Brooklyn Neighborhood in Jacksonville, FL

Riverside/Brooklyn is a neighborhood of Jacksonville, Florida, considered part of the downtown area. Originally a residential suburb, commercial uses became prominent during the 20th century, particularly along the St. Johns River and Riverside Avenue, and the area became included in Jacksonville’s central business district.

Riverside / Brooklyn median real estate price is $246,688, which is more expensive than 54.2% of the neighborhoods in Florida and 55.1% of the neighborhoods in the U.S. The average rental price in Riverside / Brooklyn is currently $1,226.  Riverside/Brooklyn real estate is primarily made up of small (studio to two bedroom) to medium sized (three or four bedroom) apartment complexes/high-rise apartments and single-family homes.

2. Isle of Palms Neigborhood in Jacksonville, FL

Isle of Palms median real estate price is $419,643, which is more expensive than 86.2% of the neighborhoods in Florida and 80.6% of the neighborhoods in the U.S. The average rental price in Isle of Palms is currently $1,211. Isle of Palms real estate is primarily made up of medium sized (three or four bedroom) to small (studio to two bedroom) single-family homes and apartment complexes/high-rise apartments.

3. Oak Harbor Neighborhood in Jacksonville, FL

Wonderwood/Oak Harbor median real estate price is $193,343, which is more expensive than 41.9% of the neighborhoods in Florida and 44.9% of the neighborhoods in the U.S. Wonderwood/Oak Harbor is an urban neighborhood (based on population density) located in Jacksonville, Florida.Wonderwood/Oak Harbor real estate is primarily made up of small (studio to two bedroom) to medium sized (three or four bedroom) single-family homes and apartment complexes/high-rise apartments.

4. Saint John’s Avenue in Jacksonville, FL

Saint Johns Ave / King St median real estate price is $500,870, which is more expensive than 91.3% of the neighborhoods in Florida and 86.1% of the neighborhoods in the U.S. The average rental price in Saint Johns Ave / King St is currently $1,180, based on NeighborhoodScout’s exclusive analysis.

Rents here are currently lower in price than 67.3% of Florida neighborhoods. Saint Johns Ave/King St real estate is primarily made up of small (studio to two bedroom) to medium sized (three or four bedroom) single-family homes and small apartment buildings.

5. Mayport Neigborhood in Jacksonville, FL

Mayport is a small community located between Naval Station Mayport and the St. Johns River in Jacksonville, Florida. It is part of the Jacksonville Beaches communities. The only public road to Mayport is State Road A1A, which crosses the St. Johns River Ferry to Fort George Island.

Mayport median real estate price is $160,545, which is less expensive than 67.0% of Florida neighborhoods and 67.0% of all U.S. neighborhoods. The average rental price in Mayport is currently $1,737, based on NeighborhoodScout’s exclusive analysis.

The average rental cost in this neighborhood is higher than 79.3% of the neighborhoods in Florida. Mayport real estate is primarily made up of medium sized (three or four bedroom) to large (four, five or more bedroom) townhomes and single-family homes.

Investing in Jacksonville Real Estate: Advice For New Buyers

Maybe you have done a bit of real estate investing in Jacksonville but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold. Should you consider investing in the Jacksonville real estate?

The Jacksonville real estate market is predicted to grow at a slower rate from what was seen last year. Overall, it seems like this year has started on a right side for property owners and Jacksonville real estate market. Affordably for first-time buyers combined with low stock makes it a good market for investors.

Let us also talk about the climate of Jacksonville, FL. It has an exceptionally tropical, warm climate with gentle winters. The city hasn’t seen a real heavy snow fall since 1989, and in January, you’ll think about whether it isn’t Fall. On the other side, Jacksonville is unimaginably sweltering and muggy amid the Summers.

Although Florida, in general, has a reputation for being a haven for hurricanes, Jacksonville’s tucked-away location in the northeast corner reduces the likelihood of the city being hit by a hurricane. In fact, the only hurricane to make landfall in Jacksonville was Dora, and that was back in 1964.

A good cash flow from Jacksonville rental property means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt. Therefore, finding a best investment property in Jacksonville in a growing neighborhood would be a key to your success.

If you invest wisely in Jacksonville real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate. The less expensive the Jacksonville investment property is, the lower your ongoing expenses will be.

When looking for the best real estate investments in Jacksonville, you should focus on neighborhoods with relatively high population density and employment growth. Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable. You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Jacksonville.

You should also join real estate investment clubs in Jacksonville and try to make connections with fellow investors. To be effective in the real estate industry, a concrete marketing design is vital. The real estate market is constantly changing in their methods on how to look for that right property.

Let Us Help You In Buying Your First Investment Property in Jacksonville

Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing and interest rates.

NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability. Consult with one of investment counselors who can help build you a custom portfolio of turnkey cash flow rental properties in the various growth markets across the United States.

All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching top real estate growth markets and structuring complete turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.

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References:

• Latest Market Trends & Forecasts
  https://www.movoto.com/jacksonville-fl/market-trends/
  https://www.zillow.com/jacksonville-fl/home-values/
  https://www.neighborhoodscout.com/fl/jacksonville/real-estate
  https://www.realtor.com/realestateandhomes-search/Jacksonville_FL/overview
• Foreclosures
  https://www.realtytrac.com/statsandtrends/fl/duval-county/jacksonville/
• Population
  https://www.jacksonville.com/news/20190530/jacksonville-growth-no-7-nationally-census-estimates-say
• Reasons to invest in Jacksonville
  http://www.jaxinvestments.com/why-jacksonville
  https://www.tripsavvy.com/pros-of-living-in-jacksonville-2021375
  http://www.jwbrealestatecapital.com/jacksonville-fl-perfect-investment-properties
  https://www.realpro.com/our-blog/post/jacksonville-floridas-hottest-property-investment-market
  https://www.forbes.com/sites/samanthasharf/2018/02/01/full-list-where-to-invest-in-housing-in-2018/#5f7abada627e