Jacksonville Investment Property Market

Jacksonville Investment Property Market Overview

Jacksonville is the 40th largest U.S. metro area, spanning 5 counties with an estimated population of 1.4 mm people. The market has experienced significant recovery since the recession, with home values increasing over 45% since 20121. However, home values still remain over 15% below the prior peak and are expected to increase an additional 12% by 20192. This puts Jacksonville near the top of the list in terms of home price appreciation (HPA) potential over the next 4 years.

Affordable Homes, Strong HPA Forecasts and Top 10 Market for Household & Employment Growth

Despite significant moves in the housing market since the recession, homes in Jacksonville remain affordable relative to other Florida markets and the rest of the U.S. The average home price in Jacksonville is $168,300, which is nearly 30% lower than the average home price in the U.S.3

In addition to strong HPA forecasts, Jacksonville ranks among the top 10 markets for household and employment growth in the U.S. In 2015, household growth in Jacksonville was 2.3%, which is ahead of the national average of 1.4%, and employment growth was 3.6% vs. the national average of 1.7%4.

Another factor that makes Jacksonville a great Single-Family Rental (SFR) investment market, is that it has above average gross rental yields relative to other U.S. SFR markets. Gross yields in Jacksonville averaged 10.3%, which is well above the national average of 9.2%5.
  • HPA and rent growth: Some of the strongest home price appreciation and rent growth forecasts in the nation
  • Gross yields: Above average, relative to other U.S. markets
  • Decreasing foreclosures: Home foreclosures in Jacksonville decreased by 39% over the last 12 months6, supporting increasing home values in local neighborhoods
  • High negative equity rate: 23.18% of homes in the Jacksonville market have negative equity, which is higher than the national average7.
  • Jacksonville is the largest city in the continental U.S. with over 840 square miles
  • The Mayo Clinic opened the doors to its Jacksonville campus in 1986
  • 1 Zillow
  • 2 John Burns Real Estate Consulting, March 2016
  • 3 Zillow
  • 4 John Burns Real Estate Consulting, March 2016
  • 5 John Burns Real Estate Consulting, March 2016
  • 6 Findthehome.com, January 2016
  • 7 Findthehome.com, January 2016

Real Estate Investment Insights

Investment Style: High Yield
While each property will differ, this market is more likely to have properties where the rental income is high relative to the value of the property.
Inventory:
Home Value *
$176,400
$193,800
National Avg
Home Value Growth (YoY)
7.8%
6.8%
National Avg
Rent **
$1,280
$1,403
National Avg
Source: Financial data from Zillow includes single family, condo & cooperative homes, updated on 12/31/2016
Job Growth (YoY)
3.6%
1.6%
National Avg
Household Growth (YoY)
2.0%
0.9%
National Avg
Estimated Months of Resale Supply
3.9%
4.0%
National Avg
Household Income
$55,100
$57,943
National Avg
Supply, Demand & Affordability data includes single family homes only, updated on 1/13/2017
  • Arrows indicate the directional change since the last update. No arrow indicates that there was no change in the data or no previous data is available.
  • * Home Value: includes all types of housing, including primary resident, condos, investment properties, etc.
  • ** Rent: includes all rental properties, including Single-Family Homes, multi family units, etc.
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