It doesn’t take a real estate expert to know that the Florida real estate market is top-tier in the US. The Sunshine State is home to many of the best city markets including the topic of this blog: the Jacksonville FL real estate market. How is the Jacksonville real estate market performing? Why should you invest in Jacksonville real estate? Where can you find the best Jacksonville houses for sale? To get answers to these three pertinent questions, read this blog!
Jacksonville Real Estate Market 2019: City-Level Data
Let’s start with the first question: How is the Jacksonville housing market performing statistically? The best way to answer a question about statistics is to use statistics. For this, we turn to Mashvisor’s rental property calculator, a must-have investing tool, which you can learn about by clicking here. Here is the data for the average Jacksonville investment property, according to Mashvisor’s calculator:
- Median Property Price: $294,489
- Price per Square Foot: $523
- Price-to-Rent Ratio: 18
- Rental Income: $1,355
- Cap Rate / Cash on Cash Return: 1.7%
- Rental Income: $2,349
- Cap Rate / Cash on Cash Return: 4.7%
- Occupancy Rate: 56.4%
Why You Should Invest in Jacksonville Houses for Sale
Mashvisor’s data shows that Jacksonville houses for sale have a lot of upsides. We’ll now use that quantitative data with the city’s real estate market trends to list the reasons to invest in Jacksonville real estate.
The primary purpose of all rental properties is to generate consistent, positive cash flow. The main ingredient for this recipe is, by far, rental income. Luckily for Jacksonville real estate investors, the city’s investment properties have a high rental income average for both rental strategies. The typical Jacksonville real estate investment generates $1,355 and 1.7% in ROI for traditional properties and $2,349 and 4.7% in ROI for Airbnb Jacksonville properties. These figures are merely averages. An investor’s Jacksonville real estate investment can generate much more in rental income and return on investment (if the property search is conducted with the right tools, that is).
Jacksonville houses for sale also benefit from another form of profit: appreciation. According to NeighborhoodScout, during the last 12 months, the Jacksonville real estate market appreciated by 8.06%. This rate is higher than 60% of cities and towns in the Florida housing market and 82.5% of cities and towns in the entire nation.
Appreciation is just one benefit of owning a rental property. Learn about the 8 Benefits of Owning a Rental Property.
Affordability is another key feature to look for in a real estate investment, and the Jacksonville housing market relishes in it. As seen from Mashvisor’s data, the median Jacksonville investment property price is $294,489. This is less than the US median property price of $308,000 and the Florida median property price, according to Mashvisor, of $440,609. Even with Jacksonville being a seller’s market as opposed to a buyer’s market in 2019, the market’s inexpensive property prices make purchasing a property very conducive to the average investor.
Not only are Jacksonville houses for sale more affordable than their counterparts in Northern Florida, but the cost of living in Jacksonville is also more affordable. According to NerdWallet, the cost of living in Jacksonville is 5% lower than Tallahassee’s and 3% lower than Pensacola’s. This attracts people to the city, meaning more tenants for your rental properties!
They’re Great for Traditional Investing
Jacksonville houses for sale are excellent for both traditional and Airbnb real estate investing. Much of this success is due to the city’s economic strength. The unemployment rate of Jacksonville is 3.5%, which is the same as the state’s rate and is lower than the nation’s average of 3.9%. Jacksonville’s job growth has been impressive as well, with a 2.8% increase, which is higher than the US average of 2.6%. Projected job growth for the next 10 years is even more impressive. It is estimated to be 44.4%, trumping the US average of 33.5%. Demand for Jacksonville houses for sale is also steady, with 43% of residents renting out a Jacksonville investment property. A considerable amount of this demand comes from tiny houses, which have been growing in popularity as both traditional and short-term rentals.
Interested in searching for tiny houses in Jacksonville? Start your search using Mashvisor by clicking here!
Related: What’s a Tiny House? Is Buying One a Good Investment?
They’re Great for Airbnb Jacksonville
Jacksonville vacation rentals are also superb, as indicated by Mashvisor’s Airbnb statistics. It is important to ask, however, is Airbnb legal in Jacksonville? Currently, there are no official Airbnb regulations in Jacksonville. This means that using Jacksonville houses for sale for Airbnb purposes is neither legal nor illegal. While there are no official regulations for Jacksonville short-term rentals, there has been a recent ordinance proposal investors should be aware of. The ordinance would require hosts to register their Airbnb Jacksonville properties with the city. Hosts must also reside in the property and go through a landlord-training program before rental activity. The ordinance also limits rental activity to 3 rooms and 2 adults per room. It would be best to keep an eye on whether this ordinance is put in place to ensure you are always compliant with the local laws.
Related: The 10 Best Places to Buy Vacation Homes in Florida in 2019
Best Neighborhoods in Jacksonville for Traditional Rentals
We can now answer the last question: Where are the best places to invest in real estate in Jacksonville? According to Mashvisor, the best neighborhoods to buy traditional Jacksonville houses for sale are Arlington Manor, Springfield, and Brakridge.
- Median Property Price: $89,000
- Price per Square Foot: $79
- Price-to-Rent Ratio: 8
- Rental Income: $938
- Cap Rate / Cash on Cash Return: 3.1%
- Median Property Price: $271,100
- Price per Square Foot: $125
- Price-to-Rent Ratio: 16
- Rental Income: $1,387
- Cap Rate / Cash on Cash Return: 1.9%
- Median Property Price: $158,150
- Price per Square Foot: $138
- Price-to-Rent Ratio: 11
- Rental Income: $1,176
- Cap Rate / Cash on Cash Return: 2.8%
Best Neighborhoods in Jacksonville for Airbnb Rentals
What about Airbnb? According to Mashvisor, the best neighborhoods for Airbnb Jacksonville houses for sale are East Arlington, Baymeadows, and Windy Hill.
- Median Property Price: $269,797
- Price per Square Foot: $140
- Price-to-Rent Ratio: 16
- Rental Income: $3,665
- Cap Rate / Cash on Cash Return: 8.0%
- Occupancy Rate: 52%
- Median Property Price: $175,591
- Price per Square Foot: $119
- Price-to-Rent Ratio: 14
- Rental Income: $2,790
- Cap Rate / Cash on Cash Return: 7.6%
- Occupancy Rate: 65%
- Median Property Price: $216,489
- Price per Square Foot: $147
- Price-to-Rent Ratio: 14
- Rental Income: $2,778
- Cap Rate / Cash on Cash Return: 6.9%
- Occupancy Rate: 59.3%
All in all, the Jacksonville real estate market should be the answer when you’re asking where to invest in real estate in Florida this year! To start searching for Jacksonville houses for sale, click here to start your 14-day free trial with Mashvisor.