The latest news on the Jacksonville property market is that rental prices in this city place it among the top 13 overpriced markets in the country.
While this is bad news for the thousands of people who move to Jacksonville every year, it's a promising prospect for investors looking for lucrative properties to add to their portfolios.
If you're toying with the idea of Jacksonville real estate investing, these five facts will help you make up your mind.
1. Low Real Estate Prices
The average price of a house in Jacksonville is $321,000 compared to the national average of $428,700, despite recent price increases due to low inventory.
Coupled with high rentals, this makes investing in Jacksonville real estate a good option for most investors.
2. Excellent Home Price Appreciation
Jacksonville home prices show exceptionally consistent appreciation levels. Since 1991, home prices have appreciated by an average of 4.3% per year.
Even during the Great Recession, the city saw a 4% increase in home appreciation. According to Redfin, home prices increased by 10% during the recent 2020 to 2022 property boom.
3. A Growing Job Market
Jacksonville is firmly pro-development and embraces business-friendly policies to strengthen its economy. As such, it's a major attraction for job seekers and business owners alike.
Recently, the unemployment rate in Jacksonville has declined to 2.2%, thanks to rapid growth in the following sectors:
- financial activities
- hospitality and leisure
- business and professional services
Already, Jacksonville is home to major employers like Baptist Health, Bank of America, Mayo Clinic, and Southeastern Grocers.
4. High Demand for Rentals
The influx of businesses and job seekers to Jacksonville means there's a growing demand for rentals, despite the high prices.
Almost half the population of Jacksonville already rents their housing, and the city boasts consistent rental occupancy rates of 95%. So, as a landlord, you'll find no shortage of tenants willing to pay top dollar to rent your property.
5. Jacksonville Has a Bright Future
Jacksonville is growing steadily at a rate of 1.33% per year, adding over 130,000 people to its population over the last ten years. Forecasters predict that the city will grow by at least another 80% by 2060, accommodating over 2 million people.
Positive population growth, a low cost of living, a good quality of life, and a growing job market are the major reasons people choose to move to Jacksonville. There is $1 billion worth of active construction projects in the pipeline for the city, and it aims to become a center of business, innovation, and arts in due course.
These positive aspects make Florida's largest city by area a promising place to invest in real estate.
Get the Best Returns on Jacksonville Property
Low prices, high appreciation, and escalating rentals are the perfect combination for savvy buyers on the lookout for great investment properties.
We can help you find a Jacksonville property that ticks all these boxes for you and assist with managing it most profitably.
We specialize in Jacksonville property management, including finding and screening tenants as well as property maintenance. Get in touch for assistance with maximizing your Jacksonville real estate investments.