Jacksonville, one of the major cities in Florida, is now a rising star in the real estate market. Jacksonville real estate price steadily increases over the years as more people migrate into the city to look for a better job opportunity.
Nefar.com reports that there is a considerable rise in the number of single-family homes sold in 2022, the percentage rose by 23.4 points compared to last year’s number. Business owners are also aware of this trend, and many are starting to open their companies in Jacksonville, inviting even more immigrants to the city.
With plenty of job opportunities available, amazing weather, and a variety of residences available, it is safe to say that Jacksonville Fl real estate market will see a notable growth in the near future.
Jacksonville Current Housing Market Trend
Realtor.com’s data in 2021 shows that Jacksonville is a seller market. It means that there are more buyers that want to purchase a property in this area than the number of buildings available. In 2022, this trend has not changed.
In fact, many realtors reported that there are plenty of homes in Jacksonville’s neighborhood which got multiple offers before they were finally sold in around 20 days. Furthermore, houses were generally sold for around 5 percent higher than the listed price. As Jacksonville metro population is increasing and the people’s economy is getting better, it is possible that the days a house is on the market will be shorter and shorter.
Jacksonville Population Growth
Jacksonville is the most populous city in Florida with a total of 975,177 citizens in 2022, according to the US latest census. Forbes reported that Jacksonville is one of the fastest growing cities in Florida with an average of 2% increase of residents every year.
The most interesting thing about Jacksonville is the fact that there is a huge increase of young residents around the age of 20 to 30 coming from the other areas in the United States. There is at least a 4% growth of new millennial residents in Jacksonville every 5 years. It shows that this humble city in Northern Florida has the potential to turn into the newest business district.
Jacksonville Quality of Life
Jakcsonville has bustling economic activities, most of which are in the banking, manufacturing, and logistics sectors. There are several big companies headquartered in Jacksonville. Some of them are even listed in Fortune 500 companies. Since Jacksonville has several beaches that are starting to gain more popularity, the hospitality and leisure industry is also on the rise in this area.
It can be clearly seen that more industries are growing in Jacksonville. Job availability is even forecasted to grow by more than 40% in the next decade. As more people come to work here, the housing industry will also grow. It will be a great idea to start investing in properties in Jacksonville now since at this rate, the price of property in this area will skyrocket very soon.
Historic Price Changes
The median days of Jacksonville’s houses on the market are fluctuating, but it has seen steady improvements for the past couple of months. In July 2002, the properties sold after an average of 22 days on the market. In July 2021, the number is pretty much the same, with around 25 days, a significant improvement compared to 45 days in 2020.
As regards the home prices, Redfin reports that it was up to 20.4% in July 2022 compared to 2021, with a median price of $318,000. However, the number of houses sold decreased to 1,604, compared to 2,009 the year before. It has something to do with the fact that people are still trying to recover from the pandemic and still hold back the cash they have.
The listing price for the houses in Jacksonville can differ, depending on the neighborhoods. Here are some important statistics regarding the price changes in Jacksonville real estate market trends.
- As of July 2022, the most expensive neighborhood in this city is Mandarin, with a listing price of $482,000. Meanwhile, Baymeadows is the cheapest one. The listing home price for this neighborhood is around $189,000.
- The median price for active rent is $1,600.
- The median home price per square foot is $163.
- Popular listings can sell for 3 to 4% above the listed price and stay on the market in less than 9 days. Meanwhile, some of the less popular ones usually sell for 1% below the listed price, with an average of 25 days on the market.
Jacksonville Cost of Living
Jacksonville growth, along with its new leisure and tourism spots, as well as reputable companies and industries have attracted many people to come to this city. But the most vital thing that makes this city so attractive is its cost of living.
Even though it is a metropolitan city in Florida, the cost of living is considerably lower compared to the other metropolitan cities in other countries. For instance, data shows that the cost of living in Jacksonville is 8% and 7% lower compared to the state and national average respectively. Furthermore, housing costs are also 14% lower than the national average. Utilities, transport, and healthcare are also cheaper than the state and national average. Although the cost of food in this city is 6% higher than the US average, living here is still less pricey in general.
Jacksonville’s Rental Market
The rental market in Jacksonville also sees significant growth as more single working-age individuals move to this city.
To rent a 1-bedroom apartment in the metro area of Jacksonville, one needs to spend an average of $1,250 per month in July 2022, 19% up compared to 2021.
Meanwhile, those who prefer to rent a studio apartment need to spend at least $,1045. This number also increased by 15% compared to the previous year.
As regards the average rent for a 2-bedroom apartment, it goes down by 1% to $1,402. However, the average rent for 3-bedroom and 4-bedroom houses sees a notable increase by 18% and 17% respectively. The median rent for a 3-bedroom house is $1,800, while a 4-bedroom house is $2,045. These trends show that the Jacksonville rent market is attractive for people who live alone as well as people who live in a large household.
Jacksonville Real Estate Market Forecast
Looking at the data and current trend, experts forecasted that Jacksonville Fl real estate market is a profitable investment. As of now, the single-bedroom apartment rent market seems to be the most profitable. However, due to the steady rise of the 3-bedroom and 4-bedroom median rate throughout 2021 and 2022, it is safe to say that not only the rent market will see a significant market in the near future, but also the housing market.
According to the Zillow Home Value Index, the appreciation rate of properties in Jacksonville, Florida has risen dramatically by 146%. The median rate of $318,000 in July 2022 also increased from $273,730 in 2020. Moreover, the number in 2020 also rose by 27.3% from 2020. The constant increase throughout the years certainly signals a positive development.
So, what are the predictions for Jacksonville Florida real estate for the rest of 2022 and 2023? Here are some of the most notable predictions that you need to look out for.
- Zillow Home Value Index predicts that there will be a rise in the home value in Jacksonville up to 22% in the next several months.
- The home values of Duval County, Clay County, Nassau County, and Baker County will increase more than 20& in the next twelve months.
- The properties in St. Johns County will be the one with the highest demands in Jacksonville, and the value will rise more than 30%.
Pros and Cons of Investing in Jacksonville Real Estate
Jacksonville is a remarkable area for property investment, but it is not perfect. There are some pros and cons that you must consider before deciding to purchase a building in this area.
- The beaches
Jacksonville, Florida is named as the beach galore. It has perfect weather for those who love to spend their summer on beautiful beaches.
Since there are so many beaches in this place, you can generally commute to the nearest beach in less than one hour. This is certainly a great attraction for those who dream to live in an area close to tourist destinations.
- Lower Cost of Living
Jacksonville is one of the major cities in Florida. However, compared to the other major cities in the United States, Jacksonville has a lower cost of living in some of the smaller neighborhoods. As the cost of living gets higher and higher each day, many people will naturally decide to move to a place with a lower living cost.
- Study shows that there are more and more single grown-ups moving to Florida each year. It might seem like a good development, but if assessed from the rental market perspective, it is actually something to be aware of.
The rent turnover for single-grownups is usually quite high. So, if you plan to purchase a property to be rented, this is something that you must carefully think about. It might be best to consider purchasing a property that can be rented for families instead of individuals living alone.
- Jacksonville once was one of the cities in the USA with the highest crime rate. While it has changed now and the crime rate has gone down significantly, the title as a major center of crime has never really gone from people’s minds. As a result, there are still many investors who refuse to open their business in this area.
Jacksonville Real Estate Market FAQs
- Is Jacksonville a great place to invest in properties?
The data from Redfin shows that there is a steady appreciation rate for real estates in Jacksonville over the past several years. The median sale price saw a $95,000 increase in the span of 5 years, from 2017-2021.
The population growth, as what can be seen in the data above, also indicates that there will always be a growing demand for new homes in this area. This is a sign of a healthy property market.
- Which are the best areas to invest in Jacksonville Florida Real Estate?
If you are looking for a new investment opportunity with potential market growth, it might be a good idea to look into newly developed areas. Not only are they cheaper than the more crowded areas in the city, but those neighborhoods also have a lot of room for more growth in the future.
One of the best areas to invest in for first time buyers is Englewood. According to Redfin, Englewood has a median sale price of $228,500 in 2021, which increased 16% compared to 2020.
In addition, Clay County also can be a great choice. This place is developing rapidly and it is seen as one of the best tourist destinations in Florida. It saw more than 23% increase in median sale price in 2021 to an impressive number of $290,250.
- What Details Should I Look Out for When Buying Properties in Jacksonville?
Many people tend to be too focused on prices that they forget to pay attention to details when purchasing houses in Jacksonville. There is one important thing that should not be overlooked when you are hunting for a house in this area.
Make sure to check the HVAC units in the house. Due to the weather in Florida, an air conditioning system is essential. Having a reliable HVAC unit that works properly can determine the price of the building. If the HVAC unit in the property is more than 12 years, it is the right time to get the equipment replaced.
Overall, Jacksonville is a profitable area to invest in properties. Whether you want to rent it or purchase one as an investment, it is very likely that you will get high profit. If you are ready to purchase a house in this area, make sure to research everything about the area first, especially if you are not familiar with the situation in Jacksonville, Florida. Doing thorough research, especially about the market forecast, is the key for a successful investment in Jacksonville real estate.