Real estate professionals in Jacksonville, FL consider it such a good market for real estate investors because its underpinnings are solid. All major indicators point to strong gains in jobs, rising rents, low vacancies and household growth. Each of these components of a real estate market would be enough to attract investor interest, but when all four come together, the signs clearly point to solid opportunities in the residential real estate sector.
Jacksonville Investment Property: Key Market Characteristics
- Job growth. The Florida Department of Economic Security reported in August 2016 that nonagricultural jobs grew by 22,900 from July 2015 to July 2016, after a regional increase of 22,200 from 2014 to 2015, for a one-year job growth of 3.9 percent. Total nonagricultural jobs stood at 666,600 in the Jacksonville area as of July 2016.CSX, Fidelity National Financial and FIS have their headquarters in Jacksonville, and other major employers include the U.S. Department of Navy with two naval stations and the Fleet Readiness Center, Bank of America and the Mayo Clinic. Johnson and Johnson, Visionworks and Anheuser-Busch are ramping up employment in the area, which will increase demand for rental housing.
- Population growth. Between 2010 and 2015, the population of Jacksonville increased from 821,784 to 868,031. The median age in 2010 was 35.5, compared to 40.7 for all of Florida. The average family size in Florida was 3.01, and 3.05 in Jacksonville.
- Housing sales. Sales activity in Jacksonville has increased over the last three-year period, and more importantly, so have median sales prices, up from $175,000 in 2013 to $195,000 in 2015 for detached products. The median attached home sales price in 2013 was $115,000, and it had risen to $128,000 in 2015. The Census Bureau’s estimate of owner-occupied home value stood at $139,000 in 2013.
- Vacancies, rental rates and housing prices. Vacancy rates indicate the demand for rental housing, and in 2016, Marcus & Millichap reported it stood at 4.5 percent for apartments in Jacksonville, down six percent over the last five years. Such steep declines are rarely seen in such a short period, and indicate the depth of demand for rental housing.Apartment rental rates reached $917 in 2016, after rising 5.2 percent from 2015. The Census Bureau reported that 38 percent of the households in the area rented their homes in 2010.
Jacksonville Investment Property Solutions and Support
As one of the leading states for tourism and seasonal housing, realtors in Florida and Jacksonville have a high degree of familiarity with the seasonal and second home markets. While these segments are normally part-time only, appealing to and providing services for them is similar to the ways that turnkey property management companies help their clients.
From finding the best locations and properties with the most potential as investment properties, turnkey companies simplify property ownership for local and absent owners. Their experts understand the dynamics of the local housing market and the best locations. They know the property enhancements that will increase the perceived value among potential tenants,
Markets that have such a solid base in the economic fundamentals that support real investments with such strength are hard to come by. If you’ve been searching for a place to start or grow your investment portfolio, Jacksonville could be the right place.
See also Why Jacksonville for Investment Property?
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