Looking for an affordable, profitable, and growing housing market? The Jacksonville real estate market is the place for you!
Located on the eastern coast of Florida, Jacksonville is the largest city in the state – both in sheer size and population. Since the latest recession, Jacksonville real estate has made significant improvements and is making a name for itself. It’s also showing strong indicators of a hot housing market, including low vacancies, high employment, rising rents, and other factors that attract property investors into a city. Thus, if you’re a buyer searching for your next investment property, keep reading to learn why and where to invest in the Jacksonville real estate market.
Related: The 4 Best Places to Invest in Real Estate in Florida
Jacksonville Real Estate Trends and Reasons to Invest
Affordability
Jacksonville is consistently ranked among cities with a low cost of living, lower than both the Florida average and the US national average. Moreover, Jacksonville has no state income tax and also one of the lowest property tax rates in the US. In some parts of the city, housing is stunningly affordable, where Jacksonville real estate investors are able to buy cheap properties with just under $100K! Don’t believe us? Take a look at these properties for sale we’ve found in Jacksonville using the Property Finder tool:
Property 1:
- List Price: $66,000
- Estimated Value: $67,053
- Cash on Cash Return: 13.83%
Property 2:
- List Price: $55,000
- Estimated Value: $49,347
- Cash on Cash Return: 11.36%
Property 3:
- List Price: $75,000
- Estimated Value: $71,265
- Cash on Cash Return: 11.08%
Click here to get more info on these properties and find more in the Jacksonville housing market today!
This affordability is mainly due to the increasing foreclosed homes for sale in the city. According to FortuneBuilders, there are 3,611 foreclosures in the Jacksonville real estate market. This presents great opportunities for home flippers looking for places where they can buy low and sell high, which is exactly what property investors are doing in Jacksonville.
It’s worth noting, however, that while Jacksonville real estate investment properties are cheap compared to just about anywhere else in the US housing market, they are exercising an upward trend. This is mainly because affordability drives supply and demand, which leads us to our next point.
Supply and Demand
As said earlier, Jacksonville is a growing city – in terms of population, job market, and economy. Jacksonville ranks 13th in the largest cities in the country and, last year alone, it had recorded a population growth of 2.5% with a population of 1.3 million people. Furthermore, the city’s job sector supports this trend. Statistics show that the employment rate in Jacksonville has been growing at 3.6% annually. More importantly, this growth in the job market is expected to continue over the coming years.
Due to all of these factors, Forbes named Jacksonville the 7th best city for future job growth and 8th biggest US city with the fastest growing economy. All of that naturally made the city one of the best places to invest in real estate which is great news for property investors.
Related: Location Location Location: What Makes for the Best Place to Invest in Real Estate?
The growing population along with housing affordability is pushing the demand for Jacksonville real estate rental properties. The strong job market and the healthy economy have also increased rents in the city. Another trend to keep in mind is that this demand has surpassed the supply of housing in the city. As a result, home values are climbing up – good news for today’s Jacksonville real estate investor.
Thus, if you’re considering buying an investment property, now is probably the best time to go for it! Use Mashvisor’s data and analytics to find the best investment properties in Jacksonville. To start looking for and analyzing the best investment properties in your neighborhood of choice, click here.
Positive Future Forecast
All the above trends and more show that the Jacksonville housing market will continue to see a bright future in the next decade. Reports indicate that job growth is set to increase by 42% by then, encouraging more and more people to move into this business-friendly city. Not only that, but Jacksonville is especially attractive to families as it’s considered a safe city with crime rates going down year after year. This tells a real estate investor to invest in long-term rentals in Jacksonville real estate! If you invest now, you will enjoy reasonable prices, positive cash flow, and long-term profits.
Do you have a free Mashvisor account? Click here to use our Property Finder and find properties in a matter of minutes!
Jacksonville Real Estate Market Stats 2018
The data below is provided by Mashvisor’s investment property calculator – a tool that will add efficiency to your real estate investing career. Our calculator gives you projections of necessary data including the cap rate, cash on cash return, rental income, and occupancy rate of investment properties in almost every city and neighborhood across the US housing market. With the help of this tool, any real estate investor can easily find, analyze, and compare different properties in different locations to identify the most profitable one. To learn more about our calculator, read “Investment Property Calculator For Analyzing Real Estate Investment.”
Now, according to our tool, the average Jacksonville investment property has a:
- Median Property Price: $317,364
- Price Per Sq/Ft: $154.31
- Traditional Rental Income: $1,348
- Cash on Cash Return: 1.3%
Remember that, even though the average CoC return for the city and its neighborhoods may be low, you can find investment properties with a much higher ROI (as shown by the properties listed above).
Best Neighborhoods to Invest in Jacksonville Real Estate 2018:
Chimney Lakes
- Median Property Price: $255,267
- Price Per Sq/Ft: $114.25
- Traditional Rental Income: $1,440
- Cash on Cash Return: 1.82%
Julington Creek
- Median Property Price: $326,414
- Price Per Sq/Ft: $141.69
- Traditional Rental Income: $1,593
- Cash on Cash Return: 1.64%
Argyle Forest
- Median Property Price: $221,649
- Price Per Sq/Ft: $117.25
- Traditional Rental Income: $1,192
- Cash on Cash Return: 1.51%
Deerwood
- Median Property Price: $247,590
- Price Per Sq/Ft: $134.76
- Traditional Rental Income: $1,329
- Cash on Cash Return: 1.31%
Del Rio
- Median Property Price: $283,848
- Price Per Sq/Ft: $138.04
- Traditional Rental Income: $1,434
- Cash on Cash Return: 1.29%
Final Thoughts
Those interested in the Jacksonville real estate market need to start looking for an investment property in the city NOW! A smart real estate investor will take advantage of the affordability of this housing market through buying cheap properties, flipping them for a profit, or turning them into rental properties to start enjoying rental income and a positive cash flow. What are you waiting for? Sign up for Mashvisor and use the best investment tools to find, analyze, and compare investment properties in a matter of minutes.
To start your 14-day free trial with Mashvisor and subscribe to our services with a 20% discount after, click here.
