Jacksonville is currently a hot 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) has increased by roughly 6.2% over the past year.
This is a significant increase in home values for real estate owners who have invested in Jacksonville real estate. Over the last decade, the total cumulative rate in Jacksonville has been 85 percent, placing it in the top 20% nationally. This translates to an annual average gain rate of 6.35 percent for Jacksonville homes, according to NeighborhoodScout's data.
In the last twelve months, Jacksonville appreciation rates have remained among the highest in the country, at 11.65 percent, which is greater than the appreciation rates in 81.51% 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 appreciation rates were 3.83 percent in the most recent quarter, equating to a 16.22 percent annual appreciation rate. Let’s take a deep look at the latest Jacksonville housing market trends in 2021.
Jacksonville Housing Market Trends
Jacksonville is Florida's biggest city and, as of 2020, the largest city by area in the contiguous United States. It serves as the county seat of Duval County. According to Realtor.com's data, Duval County is a seller's market, which indicates that there are more buyers than available properties. In August 2021, the median list price of homes in Duval County, Florida was $269,900, trending up 13.9% year-over-year. The median listing price per square foot was $165. The median home sold price was $275K.
Homes in Duval County, FL sold for approximately the asking price on average in August 2021. 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.
- There are 5 cities in Duval County.
- As of August, Atlantic Beach has a median listing home price of $599.9K, making it the most expensive city.
- Baldwin is the most affordable city, with a median listing home price of $129.9K.
- The median listing home price in Jacksonville, FL is $263K, trending up 14.3% year-over-year.
- The median listing home price per square foot is $163.
- The Median Rent is $1,480.
- The median home sold price in Jacksonville is $270K.
- There are 196 neighborhoods in Jacksonville.
- Mandarin has a median listing home price of $467.5K, making it the most expensive neighborhood.
- Baymeadows is the most affordable neighborhood, with a median listing home price of $179K.
As per the real estate company, Redfin, the Jacksonville housing market is somewhat competitive. Jacksonville house prices increased 18.9 percent year over year in September 2021, with a median price of $271K. Homes in Jacksonville sell on average after 27 days on the market, down from 38 days last year. In September, 1,611 houses were sold, down from 1,698 the previous year.
- The average sale price per square foot in Jacksonville is $166, up 24.8% since last year.
- Some homes get multiple offers.
- The average homes sell for around list price and go pending in around 22 days.
- Homes in Milwaukee receive 4 offers on average.
- Hot listings can sell for about 3% above the list price and go pending in around 8 days.
NEFAR offers three categories of market statistics reports. This monthly report provides an in-depth summary of NEFAR's entire market area in addition to area-level breakout reports for numerous submarkets. Here are the latest market trends for Duval County, Florida.
- New Listings were up 9.6% from last year.
- Closed Sales were down 1.3% from last year.
- The Median Sales Price rose from $230,995 to $270,500, up 17.1%.
- The percentage of the original list price received was 99.6 percent, up 2.8 percent from the previous year.
- The percentage of properties sold over the list price was 42.0 percent, a 106.9 percent increase.
- Days on Market Until Sale was 30, a decline of 43.4%.
- The inventory of available homes decreased by 30.1 percent.
- Months Supply of Inventory dropped 41.7% to 1.4.
- 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 4.8 percent year over year, from $487,500 to $511,000, while the Months Supply of Inventory decreased by 41.4 percent to 1.7.
The Median Sales Price in West Jacksonville increased by 25.9 percent year over year, from $206,495 to $260,000, while the Months Supply of Inventory decreased by 41.2 percent to 1.0.
The Median Sales Price in Jacksonville – North increased by 23 percent year over year, from $237,500 to $292,050, while the Months Supply of Inventory decreased by 45.5 percent to 1.2.
Jacksonville Rental Market Trends
The average rent for a 1-bedroom apartment in Jacksonville, FL is currently $1,155. This is a 23% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Jacksonville increased by 17% to $895. The average rent for a 1-bedroom apartment increased by 11% to $1,155, and the average rent for a 2-bedroom apartment increased by 6% to $1,350.
- The average rent for a 2-bedroom apartment in Jacksonville, FL is currently $1,350, a 17% increase compared to the previous year.
- The average rent for a 3-bedroom apartment in Jacksonville, FL is currently $1,799, a 24% increase compared to the previous year.
- The average rent for a 4-bedroom apartment in Jacksonville, FL is currently $2,065, a 23% increase compared to the previous year.
Jacksonville Real Estate Market Forecast 2022
What are the Jacksonville real estate market predictions for 2022? Let us look at the price trends recorded by Zillow over the past few years. Since Oct 2011, the typical home value in Memphis, TN has appreciated by around 118.5% (Zillow Home Value Index). The typical value of homes in Jacksonville is currently $249,048, up 21.6% over the past year.
It indicates that 50 percent of all housing stock in the area is worth more than $249,048 and 50 percent is worth less (adjusting for seasonal fluctuations). ZHVI represents the whole housing stock and not just the homes that list or sell in a given month. Jacksonville is currently a seller's real estate market – indicating that there are more real estate buyers in the market than there are sellers. When demand is higher than the supply, home prices increase, which benefits sellers.
- The typical home value of homes in the Jacksonville Metro is $294,471, up 21.5% over the past year.
- Zillow predicts they will rise 18.7% over the next twelve months.
- 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.
- Jacksonville City home values have gone up 21.6% (current = $249,048) over the past year and will continue to rise over the next twelve months.
- Duval County home values (current = $256,920) have gone up 21.6% over the past year and will continue to rise over the next twelve months.
- St. Johns County home values (current = $423,559) have gone up 25.9% over the past year and will continue to rise over the next twelve months.
- Clay County home values (current = $282,114) have gone up 19.5% over the past year and will continue to rise over the next twelve months.
- Nassau County home values (current = $368,001) have gone up 17.3% over the past year and will continue to rise over the next twelve months.
- Baker County home values (current = $208,209) have gone up 10.9% over the past year and will continue to rise over the next twelve months.
Here is the Jacksonville Metro real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 18.7% till August 2022.
Graph Credits: Realtor.com
Jacksonville Real Estate Investment Overview 2022
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 in 2021 and beyond.
Why Is Jacksonville Real Estate Market So Hot For Investment?
ABOUT JACKSONVILLE, FLORIDA
JACKSONVILLE HOUSING MARKET STATISTICS
JACKSONVILLE'S ECONOMIC & JOB GROWTH INDICATORS
A Growing Population
Without people, there’s no real estate. So, 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. As of 2020, Jacksonville's population is 949,611, making it the 12th most populous city in the U.S., the most populous city in the Southeast, and the most populous city in the South outside of the state of Texas. In 2020, the Jacksonville, Florida metropolitan region in the United States had a population of about 1.58 million people. This is a small increase over the previous year when the population stood at about 1.56 million.
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 as 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 with 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.
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 4.458% (reduced from 5.5%) 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. An unmistakable sign that demand, may, in one way or another supersede supply in Jacksonville real estate market. The rate of building homes and property 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 anytime. 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. Jacksonville is the direct opposite of this.
In Jacksonville, the crimes have gone down. 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.
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/Brooklyn Neighborhood in Jacksonville, FL
Riverside/Brooklyn is a neighborhood of Jacksonville, Florida, considered part of the downtown area. Originally a residential suburb, commercial uses became prominent during the 20th century, particularly along the St. Johns River and Riverside Avenue, and the area became included in Jacksonville's central business district.
Riverside / Brooklyn's median real estate price is $246,688, which is more expensive than 54.2% of the neighborhoods in Florida and 55.1% of the neighborhoods in the U.S. The average rental price in Riverside / Brooklyn is currently $1,226. Riverside/Brooklyn real estate 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.
2. Isle of Palms Neighborhood in Jacksonville, FL
Isle of Palms' median real estate price is $419,643, which is more expensive than 86.2% of the neighborhoods in Florida and 80.6% of the neighborhoods in the U.S. The average rental price in Isle of Palms is currently $1,211. 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.
3. Oak Harbor Neighborhood in Jacksonville, FL
Wonderwood/Oak Harbor median real estate price is $193,343, which is more expensive than 41.9% of the neighborhoods in Florida and 44.9% of the neighborhoods in the U.S. Wonderwood/Oak Harbor is an urban neighborhood (based on population density) located in Jacksonville, Florida.Wonderwood/Oak Harbor real estate is primarily made up of small (studio to two bedroom) to medium-sized (three or four bedroom) single-family homes and apartment complexes/high-rise apartments.
4. Saint John's Avenue in Jacksonville, FL
Saint Johns Ave / King St median real estate price is $500,870, which is more expensive than 91.3% of the neighborhoods in Florida and 86.1% of the neighborhoods in the U.S. The average rental price in Saint Johns Ave / King St is currently $1,180, based on NeighborhoodScout's exclusive analysis.
Rents here are currently lower in price than 67.3% of Florida neighborhoods. Saint Johns Ave/King St 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.
5. Mayport Neighborhood in Jacksonville, FL
Mayport is a small community located between Naval Station Mayport and the St. Johns River in Jacksonville, Florida. It is part of the Jacksonville Beaches communities. The only public road to Mayport is State Road A1A, which crosses the St. Johns River Ferry to Fort George Island.
Mayport's median real estate price is $160,545, which is less expensive than 67.0% of Florida neighborhoods and 67.0% of all U.S. neighborhoods. The average rental price in Mayport is currently $1,737, based on NeighborhoodScout's exclusive analysis.
The average rental cost in this neighborhood is higher than 79.3% of the neighborhoods in Florida. Mayport real estate is primarily made up of medium-sized (three or four bedroom) to large (four, five, or more bedroom) townhomes and single-family homes.
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.
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Latest Market Trends & Forecasts
Reasons to invest in Jacksonville