Jacksonville is currently a seller’s real estate market. Jacksonville’s 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. The median price of Jacksonville properties (Duval County) increased by 4.8% to $325,000 in November 2022. Over the last decade, the total cumulative rate in Jacksonville has been 148.53 percent, placing it in the top 10% nationally.
This translates to an annual average gain rate of 9.53 percent for Jacksonville homes, according to NeighborhoodScout’s data. In the last twelve months (2021 Q2 – 2022 Q2), Jacksonville’s home price appreciation rates have remained among the highest in the country, at 24.89 percent, which is greater than the appreciation rates in 96.33% percent of the nation’s cities and towns.
According to the past twelve months, Jacksonville has been a haven for short-term real estate investors. Jacksonville’s home price appreciation rates were 6.32 percent from 2022 Q1 – 2022 Q2, equating to a 19.46 percent annual appreciation rate. However, interest rates do affect house prices, and there’s typically an inverse relationship between the two. Higher mortgage rates tend to slow home price appreciation and may weigh on housing demand if they continue to rise in 2023. Let’s take a deep look at the latest Jacksonville housing market trends.
Jacksonville Housing Market Trends
Jacksonville is Florida’s biggest city and the largest city by area in the contiguous United States. It serves as the county seat of Duval County. The following housing market trends in Duval County are based on single-family, condo, and townhome properties listed for sale on realtor.com. Land, multi-unit, and other property types are excluded. This data is provided as an informational resource only.
Duval County is a balanced real estate market, indicating that the supply and demand of homes are about the same. In November 2022, the median listing home price in Duval County, FL was $319.9K, trending up 12.2% year-over-year. The median listing home price per square foot was $194. The median home sold price was $290K.
Homes in Duval County, FL sold for approximately 2% below the asking price on average in November 2022. Ideally, a buyer would prefer a sale-to-asking price ratio that’s closer to 90%. The sellers have managed to hold good leverage in these negotiations in the past month. A seller would always prefer scenarios that can yield a ratio of 100% or higher.
As of November 2022, Neptune Beach has a median listing home price of $760K, making it the most expensive city in this county.
Baldwin is the most affordable city, with a median listing home price of $112.5K.
The median listing home price in Jacksonville City was $314K, trending up 12.1% year-over-year.
The median home sold price in Jacksonville was $285K last month.
The median rent of active rentals for sale on realtor.com is $1,440.
There are 196 neighborhoods in Jacksonville.
Golden Glades-The Woods has a median listing home price of $535K, making it the most expensive neighborhood.
Mid-Westside is the most affordable neighborhood, with a median listing home price of $119K.
Let us analyze data from another real estate company, Redfin, which says that the Jacksonville housing market is somewhat competitive. Based on the market trends of the last three months, only some homes for sale in Jacksonville are getting multiple offers, and typically take weeks to sell.
The average homes sell for about 3% below the list price and go pending in around 39 days.
A hot listing on Redfin can sell for around the list price and go pending in around 17 days.
In November 2022, Jacksonville home prices were up 3.2% compared to last year, selling for a median price of $289K.
On average, homes in Jacksonville sell after 43 days on the market compared to 28 days last year.
There were 975 homes sold in November this year, down from 1,763 last year.
42.3% of homes were sold with Price Drops in November.
Sale-to-List Price was 96.6%.
NEFAR (Northeast Florida Association of REALTORS®) offers three categories of market statistics reports. Their monthly market reports provide an in-depth summary of NEFAR’s entire market area in addition to area-level breakout reports for numerous submarkets. Below is the latest market report for Duval County containing data for the 13 regions for November 2022.
New Listings were down 2.1% from last year.
Closed Sales were down 49.2% from last year.
The Median Sales Price rose by 4.8% to $325,000.
The percentage of the original list price received was 96.7 percent, down 2.8 percent from the previous year.
The percentage of properties sold over the list price was 13.1 percent, a 63.8 percent decrease.
Median Days on the Market was 40, a jump of 107.9%.
The inventory of available homes increased by 127.6 percent.
Months Supply of Inventory increased by 348.2% to 4.0 months.
Months Supply of Inventory (MSI) is a calculation that quantifies the relationship between supply and demand in a housing market.
Historically, six months of supply is associated with moderate price appreciation, and a lower level of months’ supply tends to push prices up more rapidly.
The Median Sales Price in Jacksonville Beach increased by 27.7 percent year over year to $705,500, while home sales decreased by 75.8%.
The Median Sales Price in West Jacksonville increased by 22.2 percent year over year to $323,000, while home sales decreased by 51.8%.
The Median Sales Price in Jacksonville North increased by 29.9 percent year over year to $318,526, while home sales decreased by 58.2%.
Jacksonville Rental Market Trends
As of December 25, 2022, the average rent for a 1-bedroom apartment in Jacksonville, FL is $1,335. This is a 10% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Jacksonville remained flat. The average rent for a 1-bedroom apartment increased by 3% to $1,335, and the average rent for a 2-bedroom apartment remained flat.
The average rent for a 2-bedroom apartment in Jacksonville, FL is currently $1,495, a 7% increase compared to the previous year.
The average rent for a 3-bedroom apartment in Jacksonville, FL is currently $1,795, a 0% increase compared to the previous year.
The average rent for a 4-bedroom apartment in Jacksonville, FL is currently $2,095, a 2% increase compared to the previous year.
Jacksonville Real Estate Market Forecast 2023
What are the Jacksonville real estate market predictions for 2023? Let us look at the price trends recorded by Zillow over the past year. Since the last twelve months the typical home value in Jacksonville, FL has appreciated by around 19.6% (Zillow Home Value Index). The typical value of homes in Jacksonville is currently $312,635. Jacksonville has been a seller’s real estate market – indicating that there are more real estate buyers in the market than there are sellers.
The Jacksonville metropolitan area is the 40th largest in the country and the fourth largest in the State of Florida, behind the Miami, Tampa, and Orlando metropolitan areas. Jacksonville MSA consists of five counties — Duval County, St. Johns County, Clay County, Nassau County, and Baker County. The Fed has indicated that more interest hikes are on the way in 2023. Therefore, looking at the current trends, Zillow predicts that home values in the Jacksonville MSA may rise by only 0.8% over the next twelve months ending November 2023.
Duval County home values have gone up 19.5% to 322,378 over the past year.
St. Johns County home values have gone up 20.8% to $544,552 over the past year.
Clay County home values have gone up 22.2% to $367,888 over the past year.
Nassau County home values have gone up 27.4% to $500,952 over the past year.
Baker County home values have gone up 23.4% to $308,205 over the past year.
Graph Credits: Zillow
Jacksonville Real Estate Investment Overview
Now that you know where Jacksonville is, you probably want to know why we’re recommending it to real estate investors. Is Jacksonville a Good Place Real Estate Investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead. We have already discussed the Jacksonville housing market forecast for answers on why to put resources into this market. Purchasing an investment property in Jacksonville real estate is a little different from shopping for your car or primary residence.
While you still want to get the most for your money, if you are looking to make a profit, you don’t want to buy the most expensive property on the Jacksonville real estate market and expect to make a good profit on rents. Perhaps you are looking for a slightly different hold-over, a turnkey investment property in Jacksonville that you might move into or sell at retirement in the future! Either way, knowing your profit potential and purpose is the first thing to consider.
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 Neighborhoodscout.com, a real estate data provider, three and four-bedroom single-family detached homes are the most common housing units in Jacksonville. Other types of housing that are prevalent in Jacksonville include large apartment complexes, duplexes, rowhouses, and homes converted to apartments. 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 2022 and beyond.
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 females – 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 a 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 148.53% over the last 10 years.
Which amounts to an average annual home appreciation rate of 9.53%.
The typical home value is $312,635 – ZHVI.
+0.8% 1-yr price forecast – ZHVF.
Jacksonville rental real estate market remains healthy and affordable for most renters.
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.
A Growing Population
Without people, there’s no real estate. As the population grows, more people need a place to live. This means that over the long term, population growth drives increased demand for housing, and therefore a strong property market. Population growth also affects the property market by impacting the economy. At the same time, the supply of housing influences housing prices. When the supply does not meet the demand, property prices rise.
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. With a 2020 population of 1,064,658, it is the largest city in Florida and the 12th largest city in the United States. Jacksonville is currently growing at a rate of 1.22% annually and its population has increased by 12.12% since the most recent census, which recorded a population of 949,611 in 2020. Spanning over 875 miles, Jacksonville has a population density of 1,424 people per square mile.
Jacksonville Metro Area Population Trends
The current metro area population of Jacksonville in 2022 is 1,314,000, a 1.31% increase from 2021.
The metro area population of Jacksonville in 2021 was 1,297,000, a 1.33% increase from 2020.
The metro area population of Jacksonville in 2020 was 1,280,000, a 1.35% increase from 2019.
The metro area population of Jacksonville in 2019 was 1,263,000, a 1.53% increase from 2018.
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.
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 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 the 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 just under a hundred thousand dollars to buy and revamp a property. This amount is only two-thirds of 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.
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.
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.
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.
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 5.5% (on or after 1/1/2022) in the state of Florida, you can see why it’s attractive to businesses.
Florida’s economy is expected to grow 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.
Supply and Demand
As said earlier, the Jacksonville populace is growing. However, the real estate stock is plunging. This an unmistakable sign that demand, may, in one way or another supersede supply in Jacksonville real estate market. The rate of building homes and properties here has dependably been low over the years which has created a supply vacuum in the city. Security is one major factor influencing real estate and property development at any place and at any time.
If 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. 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. In Jacksonville, the crimes have gone down. In 2021, Jacksonville’s homicide total dropped 30 percent. Despite all the difficult news in 2021, there was a positive trend in Jacksonville — the city’s homicide numbers went significantly down for the first time in years. According to News4JAX data, homicides dropped by 28% from 2020 to 2021, while the number of people shot was down 22%.
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. 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 its 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 Jacksonville real estate.
1. Riverside
Riverside is an urban neighborhood (based on population density) located in Jacksonville, Florida. Riverside 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. Most of the residential real estate is renter occupied
Riverside’s median real estate price is $434,894, which is more expensive than 57.0% of the neighborhoods in Florida and 61.7% of the neighborhoods in the U.S. The average rental price in Riverside is currently $1,717, based on NeighborhoodScout’s exclusive analysis. Rents here are currently lower in price than in 79.7% of Florida neighborhoods.
2. Isle of Palms
Isle of Palms is a suburban neighborhood (based on population density) located in Jacksonville, Florida. 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. Most of the residential real estate is occupied by a mixture of owners and renters.
Isle of Palms’ median real estate price is $726,109, which is more expensive than 88.4% of the neighborhoods in Florida and 85.8% of the neighborhoods in the U.S. The average rental price in Isle of Palms is currently $1,971, based on NeighborhoodScout’s exclusive analysis. Rents here are currently lower in price than in 66.0% of Florida neighborhoods.
3. Jacksonville North Beach
North Beach is an urban neighborhood (based on population density) located in Jacksonville, Florida. It 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. Most of the residential real estate is occupied by a mixture of owners and renters
North Beach median real estate price is $305,997, which is more expensive than 39.8% of the neighborhoods in Florida and 51.0% of the neighborhoods in the U.S. The average rental price in North Beach is currently $1,973. Rents here are currently lower in price than 65.9% of Florida neighborhoods.
4. East Mayport / Mayport
East Mayport / Mayport is a suburban neighborhood (based on population density) located in Jacksonville, Florida. This is a coastal neighborhood (i.e., is on the ocean, a bay, or inlet). It is primarily made up of medium sized (three or four bedroom) to large (four, five or more bedroom) townhomes and single-family homes. Most of the residential real estate is renter occupied.
East Mayport / Mayport median real estate price is $233,260, which is less expensive than 76.2% of Florida neighborhoods and 62.3% of all U.S. neighborhoods. The average rental price in East Mayport / Mayport is currently $2,940, based on NeighborhoodScout’s exclusive analysis. The average rental cost in this neighborhood is higher than 80.1% of the neighborhoods in Florida.
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 areas, 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 the 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.
References
Latest Market Trends & Forecasts
https://www.nefar.com/market-stats
https://www.zillow.com/jacksonville-fl/home-values/
https://www.neighborhoodscout.com/fl/jacksonville/real-estate
https://www.redfin.com/city/8907/FL/Jacksonville/housing-market/
https://www.zumper.com/rent-research/jacksonville-fl
https://www.realtor.com/realestateandhomes-search/Jacksonville_FL/overview
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
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