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Is Jackson The Best Market For Cash Flow Real Estate Investment In 2019?

Jackson Mississippi Real Estate Market Predictions 2019

The best markets for real estate investment aren’t today’s hot markets. Instead, the best markets to invest in are those with the right market fundamentals and strong potential. And we’ve found such a market in Jackson. Jackson is the capital city of Mississippi and it is home to roughly 170,000 people. However, the Jackson Mississippi real estate market is larger than that. The Jackson metropolitan area is home to more than half a million people, a fifth of the state’s entire population. The Jackson Mississippi housing market saw modest growth up through 2006 due to population growth, but that has leveled off since then and slightly declined. Real estate investment is quite affordable in Jackson. You can buy a fully renovated investment property In Jackson starting from $75,000 with a good cash-on-cash return. Therefore, we consider Jackson as a high cash flow affordable market for real estate investment in 2019.

Jackson Mississippi Real Estate Market

Pic Credits: Architecturaldigest.com/story/why-i-moved-to-jackson-mississippi

Jackson Mississippi Real Estate Forecast 2019

Jackson real estate is resistant to the bubble concerns at this moment. Home prices in the whole Jackson metropolitan zone have increased far less than the national average for the last ten years. While list prices in the city of Jackson are up by 1.03% over the previous year, prices in rest of the metropolitan area are experiencing even less or no gains. The Jackson Mississippi real estate market forecast for 2019 is that it would continue to be driven by economic fundamentals, for example, interest rates, joblessness, and household income.

Jackson Mississippi Real Estate Prices

Graph Credits – Altosresearch.com

These trends, in any case, don’t point to enhanced market conditions in the city of Jackson. Rising interest rates can make housing more costly and mortgages more troublesome. This is mainly due to high unemployment rates in Jackson. While the Jackson Mississippi unemployment rate is slightly higher than the national average (4.1% versus 3.7% as of September, 2018), Jackson has better job prospects than the state of Mississippi. The Jackson area’s unemployment rate of 4.1% is better than the state average of 4.8%.

Unemployment Rate Trends — Jackson, MS

jackson mississippi unemployment trends

Graph Credits – Department of Numbers, Bureau of Labor Statistics, U.S.

The mix of service and civil service jobs along with manufacturing and other industries that are strong throughout the state only make it more attractive to those moving here for work. Considering all of these factors and comparing them with rest of the cities in the state of Mississippi, the Jackson real estate market should be your best bet for real estate investment in Mississippi in 2019 and upcoming years. Since the Jackson real prices are quite low, it is touted as one of the most affordable markets for cash flow real estate investment. However, that is true only if you buy investment properties in the best and affordable neighborhoods of Jackson which can give you good cash-on-cash returns. Looking at the current market conditions, the Jackson MS real estate market prediction is that a good rental property investment in 2019 can give you a cash flow of up to $600/mo. Investment properties for sale in Jackson Mississippi start from $75,000 and can go up to $100,000.

Jackson MS Real Estate Market Trends 2018

The data for Jackson real estate market is very limited. On Zillow, the median list price per square foot in Jackson is $77, which is lower than the Jackson Metro average of $114. The median price of homes currently listed in Jackson is $129,950. The median rent price in Jackson is $875, which is lower than the Jackson Metro median of $1,200. The percent of delinquent mortgages in Jackson is 2.9%, which is higher than the national value of 1.1%. In December 2017, 4.48 percent of loans in Mississippi were seriously delinquent (delinquent 90 days or more or in foreclosure). The national rate stood at 2.59 percent.

As per the report published on Stlouisfed.org, the share of seriously delinquent loans increased 42 basis points (bps) in Mississippi between September 2017 and December 2017. Loans that are delinquent 90 days or more increased 38 bps; foreclosures increased 3 bps. In the fourth quarter of 2017, house price indices for Mississippi were 0.9 percent higher (FHFA) and 1.4 percent higher (CoreLogic) than in the third quarter of 2017. Since the fourth quarter of 2016, house price indices were 3.6 percent higher (FHFA) and 3.8 percent higher (CoreLogic).

Trulia has 293 resale and new homes in Jackson lined up for you, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. In Oct 2018, the median rent of Jackson properties was $875. In Nov 2017, it was $800.

Jackson MS Real Estate Market Trends

Graph Courtesy – Trulia.com

Jackson MS Housing Market Summary

  • Average Listing Price: $132,650 (On Trulia)
  • Homes For Sale on Trulia: 293
  • Median Rent Per Month: $875
  • Median Household Income: $33,864
  • Home Owners: 52%
  • Single Residents: 33%
  • Median Age: 32
  • College Educated: 26%

As per Neighborhoodscout.com, single-family detached homes are the single most common housing type in Jackson, accounting for 68.02% of the city’s housing units. Other types of housing that are prevalent in Jackson include large apartment complexes or high rise apartments ( 20.32%), duplexes, homes converted to apartments or other small apartment buildings ( 8.30%), and a few row houses and other attached homes ( 2.20%). The most prevalent building size and type in Jackson are three and four bedroom dwellings, chiefly found in single-family detached homes. The city has a mixture of owners and renters, with 49.72% owning and 50.28% renting. Vacant housing appears to be an issue in Jackson. Fully 16.40% of the housing stock is classified as vacant.

On Movoto, the median list price in Jackson is $29,900. The median list price in Jackson was less than 1% change from November to December. Jackson’s home resale inventories is 1, which increased 0 percent since November 2018. The median list price per square foot in Jackson is $21. November 2018 was $31. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in December.

Jackson MS Housing Market Trends

Graph Courtesy – Movoto.com

Jackson MS Real Estate – Home Prices And Appreciation Rates

Jackson’s appreciation rate notably has been below the national average for the last ten years. In the latest quarter, NeighborhoodScout’s data show that house appreciation rates in Jackson were at 1.40%, which equates to an annual appreciation rate of 5.73%. The average annual home appreciation rate in Jackson during the period has been just -0.57%, which is lower than 80% of US communities. Over the last year, Jackson appreciation rates have trailed the rest of the nation. In the last twelve months, Jackson’s appreciation rate has been 1.03%, which is lower than appreciation rates in most communities in America.

10 Highest Appreciating Jackson Neighborhoods Since 2000: By Neigborhoodscout.com

Relative to Mississippi, their data shows that Jackson’s latest annual appreciation rate is lower than 90% of the other cities and towns in Mississippi. These are the ten Jackson neighborhoods which have the appreciation rates. For more information you can visit their site.

  1. Wesley Biblical Seminary / N State St
  2. S Gallatin St / U.S. Route 80
  3. City Center
  4. Illinois Ave / Pleasant Ave
  5. Belhaven U / Peachtree St
  6. U of Mississippi Medical Center / N West St
  7. E Browning Dr / U.S. Route 80
  8. W Capitol St / S Prentiss St
  9. Hanging Moss Rd / Beasley Rd
  10. I 55 N / Briarwood Dr

Best Neighborhoods in Jackson Mississippi: By Realtor.com

There are most popular neighborhoods in Jackson, MS. Country Place has a median listing price of $262.5K, making it the most expensive neighborhood. However, there are more expensive neighborhoods in Jackson where median home prices exceed $300K. Presidential Hills is the most affordable neighborhood in Jackson, MS with a median listing price of $50K.

Best Neighborhoods In Jackson Mississippi

Source of data: Realtor.com

Jackson MS Real Estate – Foreclosures And Bank Owned Homes

On RealtyTrac, there are currently 72 properties in Jackson, MS that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale in Jackson, MS on RealtyTrac is 523. In October, the number of properties in Jackson, MS that received a foreclosure filing in Jackson, MS was 30% higher than the previous month and 34% higher than the same time last year. Home sales for September 2018 were up 0% compared with the previous month, and up 0% compared with a year ago. The median sales price of a non-distressed home was $0. The median sales price of a foreclosure home in Jackson, MS was $0, or 0% higher than non-distressed home sales.

In October, the number of properties that received a foreclosure filing in the state of Mississippi was 41% higher than the previous month and 8% lower than the same time last year. Home sales for September 2018 were down 100% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home in Mississippi was $0. The median sales price of a foreclosure home was $0, or 0% higher than non-distressed home sales.

Should You Invest In The Jackson Mississippi Real Estate?

We could give you a number of emotionally evocative reasons to invest in the Jackson Mississippi real estate market, citing history or quality of life, but that is not the data that investors need to make good decisions. Here are top 10 reasons to invest in the Jackson Mississippi real estate in 2019 and upcoming years.

1. The Military Market

Service members provide a large, permanent source of renters. The Naval Air Station in Meridian is about an hour and a half away from Jackson. However, the suburbs of Jackson are within driving distance of Meridian, and if properly priced, could attract the families of servicemen and women. That market is only enhanced by the number of military contractors and related employers in the area.

2. The Tax-Friendliness

Mississippi is a low-tax state. The low average income tax burden is in part because of the lower average incomes (and cost of living) in this state. The state has a lower individual tax rate, as well, topping out at 5%. The state and local tax burden puts Mississippi 40th out of the 50 states. The average property taxes paid as a percentage of the property value hovers around two thirds of one percent, 41st out of 50 states.

3. The Lure of Jobs

While the Jackson Mississippi unemployment rate is slightly higher than the national average (4.1% versus 3.7% as of September, 2018), Jackson has better job prospects than the state of Mississippi. The Jackson area’s unemployment rate of 4.1% is better than the state average of 4.8%. The mix of service and civil service jobs along with manufacturing and other industries that are strong throughout the state only make it more attractive to those moving here for work.

4. The Affordable Market For Investors

Depending where you look, the Jackson Mississippi real estate market ranges from affordable to an outright bargain. In Jackson, the average home hovers around $53,000, though that market is notable for the number of one and two bedroom houses perfect for retirees or as starter homes. Upscale Brandon still offers homes for an average (and affordable by national standards) $170,000. The Jackson Mississippi housing market offers luxury homes that come in at less than $300,000, less than an affordable home in hot markets like San Francisco.

5. The Number of Foreclosures

The Jackson Mississippi real estate market is notable for the sheer number of foreclosures though it is a relatively stable market. At the end of 2017, nearly 5% of mortgages in the Jackson Mississippi housing market are delinquent. This is significantly higher than the national average of 2.6%. There is a much higher rate of foreclosures in markets like Detroit, but Rust Belt cities like that are speculative investments at best. In comparison, Jackson’s real estate market is stable. It is somewhat soft due to a relatively greater supply relative to demand, though this is mostly due to those who live there but cannot afford to buy.

6. The State Is Landlord Friendly

Nearly all of the southern United States is landlord friendly, especially compared to the East and West coasts. Mississippi allows landlords to require property to be kept clean and everything in good working order. Tenants can be evicted if they have garbage piling up around the property, and this includes old cars and trash. If tenants don’t clean it up, they can be evicted. Mississippi lets landlords force a lease termination with an unconditional fourteen day notice.

The state has specific security deposit requirements but doesn’t require interest to be paid on the deposits. Written rental agreements are required, but there is no limit on late fees as long as they are spelled out in the rental agreement. There is no grace period for late rent. There are no pet laws or rekeying laws in the state of Mississippi. You don’t need a rental license to be a landlord in the Jackson Mississippi housing market.

7. Jackson Real Estate Investment Has Strong ROI

Market rent for a one bedroom home in 39201 is roughly a thousand dollars, while the market rent for one in 39203 is $570, though the more expensive market has a roughly double median income, too. Gross median rent in 2016 was about $800 a month.
In comparison, the cost per condo hovers around $60,000. Factor in the relatively low cost of property in the Jackson Mississippi real estate market, and you’ll see significant return on investment far higher than other markets.

8. The Student Market

Jackson is the capital of Mississippi. This makes it the best housing market for those who want to cater to the student market in Mississippi. Jackson State University, Belhaven University, and Millsaps College are all located here. Jackson State is the largest with about ten thousand students. Mississippi College is located in nearby Clinton, Mississippi. In fact, there are ten colleges and universities within fifty miles of Jackson. This provides significant opportunity for investors who want to invest in a college town with a large number of students in an affordable market.

9. The Large Rental Market Overall

The median household income in Jackson is around $40,000 a year. The median home price is around $90,000 as 2016. However, that figure includes two bedroom condos. The average price of a detached single family home is around $130,000. This makes homes in the Jackson housing market unaffordable to many locals. This means that there is a very large rental market despite the relatively low price of properties.

10. Known Corridors of Development

The Jackson Mississippi real estate market has seen the same movement to the suburbs as other markets. However, the development has followed clearly understood routes – they spread out along Interstate 20, Interstate 55 and Interstate 220. If you want to know where new homes and businesses will be built, just look a little further down these highways.

Investing In The Jackson Mississippi Housing Market: Summary

If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate. You must also learn from successful real estate investors who have retired early on in their lives by investing in some of the hottest real estate markets. The strong US real estate market shows no signs of slowing, and is slated to remain among the world’s top performers in 2019. Jackson is a city in Mississippi and consists of 10 popular neighborhoods. There are 800 homes for sale in Jackson, MS on Realtor.com, ranging from $2.9K to $4M. The median listing home price is $129.9K and the median listing home Price/sq ft is $75. Additionally, there are 146 rentals, with a range of $450 to $4.2K per month.

jackson mississippi real estate market trends

Graph Courtesy – Realtor.com

Jackson have affordable multi-families, and affordable 1 bedroom listings. The Jackson Mississippi housing market is an affordable market for investors with a good ROI and multiple rental markets you can take advantage of. There are 119 schools in Jackson, MS. There are 47 elementary schools, 19 middle schools, 13 high schools and 40 private & charter schools.

Other Best Markets For Cash Flow Real Estate Investment

Boise real estate market forecast 2019 is that it is going to be a hot investment destination for new real estate investors. One of the attractions of the Boise real estate market is the sheer number of affordable large single family homes. You could find a four bedroom home for around $200,000, roughly $100,000 below the national average, several years ago. With increasing demand, homes are still a deal at around $250,000.

Boise has very low taxes, especially compared to the West Coast. The progressive income tax tops out at 7.4%, while the sales tax is about 6%. You pay less for utilities and car insurance, too. For investors, the average 1% property tax rate is a bargain, especially when you factor in the low cost of housing. The average property tax bill is around $2300. The national average is 1.2% of the home’s assessed value and an annual property tax bill of $3000, though in places like New Jersey and New York, it could surpass $10,000.

Another hot market for 2019 and upcoming years is going to be the Philadelphia real estate market. Philadelphia city is on the rebound and the Philadelphia real estate market predictions show us an excellent opportunity for investors in 2019 and upcoming years. Philadelphia is the largest city in Pennsylvania and the second largest on the East Coast. The traditional rental income from properties in the Philadelphia housing market is $1300 a month, though this value includes everything from two bedroom single family homes to five bedroom three bath luxury properties.

If you use the median property value of $200,000, the traditional cash-on-cash return for these properties is 2.6%. Find a deal or upgrade a home to cater to an upscale market, and you’d see better rates of return. There is another reason to expect better ROI, and that is the fact that rents in Philadelphia are rising. The median rent for properties in the Philadelphia housing market is estimated to be $1400 a month, though that’s lower than you’d see in the surrounding suburbs. There is only room to go up.

Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you can fill up the form given here. One of our investment specialists will get in touch with you. Norada Real Estate Investments helps take the guesswork out of real estate investing. We can help you succeed by minimizing risk and maximizing profitability of your real estate investments.

*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified.


References

Student market
https://www.collegesimply.com/colleges-near/mississippi/jackson/

Population
https://en.wikipedia.org/wiki/Jackson,_Mississippi

Employment rates
https://www.deptofnumbers.com/unemployment/mississippi/jackson/

Military bases
https://www.yellowpages.com/jackson-ms/military-base

Average income and condo value
http://www.city-data.com/city/Jackson-Mississippi.html

Unaffordable to locals
http://www.jacksonfreepress.com/news/2017/jun/16/how-affordable-housing-mississippi/

Landlord friendly
http://www.landlordstation.com/blog/top-landlord-friendly-states    https://www.avail.co/education/laws/mississippi-landlord-tenant-law

tax friendliness
https://www.clarionledger.com/story/news/local/2017/04/17/mississippi-tax-burden-where-do-we-rank/100581220/
https://taxfoundation.org/state/mississippi/

Property values
https://www.zillow.com/jackson-ms/

Foreclosures
https://www.stlouisfed.org/community-development/housing-and-foreclosure-resources/housing-market-conditions/mississippi

Market Trends And Forecasts                                    https://www.realtytrac.com/statsandtrends/markettrends/ms/hinds-county/jackson https://www.neighborhoodscout.com/ms/jackson/real-estate                    https://www.trulia.com/real_estate/Jackson-Mississippi                                                  https://www.zillow.com/jackson-ms/home-values                                          https://www.realtor.com/local/Jackson_MS                                                          https://www.stlouisfed.org/community-development/housing-and-foreclosure-resources/housing-market-conditions/mississippi


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