The homes and apartments in Jacksonville FL are considered some of the state’s most desirable real estate investments. Why is the city such a hotspot for rental properties? Let’s find out.
Are Apartments in Jacksonville FL Worth Investing In?
Yes, Jacksonville FL apartment complexes and houses are certainly worth investing in. Let’s take a look at some of the reasons why the city is a real estate hotspot despite normalizing housing market trends in Florida.
1. Appreciation Over 25%
Home prices appreciate at a steady rate if you measure them over multiple market cycles. Since 1982, the prices of homes in Jacksonville have risen by an average of 4.6% annually and by 4.12% since 2020. That increase is 25% higher than the average of comparable markets like Cleveland, Memphis, Kansas City, Birmingham, and Dallas.
The population of Jacksonville is growing, which also indicates long-term home and rent price appreciation. According to U.S. census reports from 2017 to 2019, the population of Jacksonville city grew 3.6% over the year prior. It’s the 5th fastest-growing large metro in the United States. Meanwhile, the population growth rate of the U.S. was only 1%.
2. Fastest-Growing Neighborhoods in Florida
Property investors should invest in affordable neighborhoods and real estate markets. This way, they can maximize their earnings for risk-adjusted returns. However, it’s also important to consider whether the neighborhood is growing and thriving or losing all its residents.
Duval County possesses 9 of the 21 fastest-growing neighborhoods in the state. It’s also leading the state of Florida when it comes to home price appreciation. Jacksonville, in particular, has an annual population growth rate of 1.22%. Since the most recent census, the population has increased by 12.12%. The city’s population density is around 1,424 per square mile.
With these trends, the city is expected to add over 800,000 new residents over the next decade. The metro’s population is also expected to more than double over 25 years.
3. High Demand for Single-Family Homes
The demand for single-family homes has been increasing, driving real estate and housing prices even higher in the past few years. Jacksonville has responded to the demand and has increased the number of single-family homes in recent years. Almost 60% of Jacksonville’s home distribution consists of single-family homes.
Despite the high demand, the homes in Jacksonville have a median price that is below the national average. Potential homebuyers can take advantage of this by purchasing property at an affordable rate.
4. High Potential Returns
Jacksonville offers relatively low home prices with decent rent, allowing property investors to receive positive cash flow. It might be slightly less than what they would find in the Midwest or a city like Cleveland. Nonetheless, what makes Jacksonville full of potential is that the average home price appreciation is 4.6% annually. As a result, property investors who plan on holding the property over a long period can expect to earn more from selling the property compared to those in other cities.
5. Low Cost of Living
Jacksonville has a cost of living score of 95.7. It’s 4.3% lower than the average in the United States and 7.2% lower than the average in Florida. Housing is affordable, which attracts more Americans looking for places to live. The homes for rent in Jacksonville will be in high demand as the number of people migrating to the city grows.
6. Strong Economy
Jacksonville has one of the nation’s best-performing economies with low unemployment rates. The state of Florida has a low corporate tax rate of 5.5%. As such, many large corporations are building their headquarters in the area. This will create jobs and attract more residents to the city.
Jacksonville also has several world-class golf courses, beaches, military bases, and an international trade seaport. The city is focusing on revitalizing the downtown area, and several development projects will bring in hotels, retail spaces, residential units, and restaurants.
For these reasons, Jacksonville is quickly becoming one of the top tourist destinations and places to live in Florida. The demand for apartments and houses for rent in Jacksonville, FL, may increase over the next few years.
7. Under the Radar
The real estate market in Jacksonville has been flourishing. In previous years, it was ranked first in the United States when it came to housing price growth. Despite this rapid growth, it remains one of the most affordable cities to live in. On a nationwide level, it’s still a bit under the radar. Hence, real estate investors can invest early and reap significant returns over the next few years.
8. Good Conditions in Florida
As much as renters look for amenities and other perks in rental homes, they also want the entire state and community to be a decent place to live. Jacksonville is a great place to invest because of the state it’s in. Why? For one thing, Florida has a strong healthcare and bioscience sector. It also does not impose a state individual income tax, making it friendlier for individuals who want to avoid paying income tax on top of other taxes like sales or property taxes.
Additionally, Florida is famous for its sunny weather. It’s perfect for residents who do not want to deal with freezing temperatures during the winter months. They do not need to worry as much about snow removal or blizzards.
9. Low Rent Prices
The median rent price in homes and apartment complexes in Jacksonville, FL, is relatively low compared to the rest of the country. It amounts to $1,549 — 21% lower than the national average. This might sound like a bad thing because property investors will earn less. However, it can be beneficial as low rent prices can entice more people to rent homes in the city.
10. Lots of Options
Jacksonville has over 3,800 items in the inventory for sale, and there is a wide variety of options for prospective investors. Furthermore, over 1,000 new listings entered the market during the same period. Apart from the existing options, Jacksonville has been constructing more and more single-family homes and overall housing complexes.
How a Property Management Company Can Help
It’s no doubt that Jacksonville apartment complexes and houses are good investments. However, it can be tricky to navigate the complexities of real estate investment without professional help. This is where rental property management companies come in.
Reliable property management companies can help you manage existing rentals and conduct rental rate studies that can help you determine the ideal rental rates for your rental homes and apartments in Jacksonville FL. They’re also well-versed in advertising and will help you attract more tenants despite Jacksonville’s competitive environment.
Get Professional Assistance Today!
Do you need a trustworthy Jacksonville property management company to help you with your rental property? You can find one through our online directory today!
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