Jacksonville is a large metropolitan city in Northeast Florida. Home to more than 900,000 residents, it is the most populous city in the state and the largest city by land in the contiguous US. The Jacksonville real estate market benefits from the city’s rapidly growing population. As reported by PWC, the population growth rate is more than double that of the entire US. And, according to NeighborhoodScout, about 44% of this population are renters rather than homeowners. This means that the tenant pool for rental properties is large, which is a good sign for Jacksonville real estate investors who can actually benefit from high demand and occupancy rates.
Jax, as locals lovingly call it, boasts a strong economy which makes for a high employment growth rate. The military and defense industry leads the way in the city. Jacksonville is home to several US military bases and naval facilities, which are the area’s biggest job generators. Still, the city has a diverse economy with other industries that contribute to the local economic growth. These industries include banking and financial services, logistics, information technology, advanced manufacturing, and healthcare. Fortune magazine’s annual list of the 500 largest US corporations by total revenue includes three Jacksonville-based companies. As with much of Florida, tourism is important to the Jacksonville area, offering visitors a wide range of activities, from visiting the city’s museums to playing golf and surfing on the beach.
The Jacksonville real estate market was named one of the most important US Markets to Watch by PWC in its annual Emerging Trends in Real Estate: United States and Canada 2019 report. The city’s reasonable cost of living, high quality of life, and business-friendly environment make it an attractive location for real estate investment and development.
|Facts and Market Trends in Jacksonville|
|Homes For Sale2,768|
|Traditional Vacancy rate7.40%|
|Airbnb Occupancy Rate56.72%|
|Median Rent Price$1,197|
|Median Days on Market85|
|Price to Rent Ratio16.6|
|Average Cap Rate|
|Average Rental Income|
|Median Household Income$46,768|
|RENTAL STRATEGY||STUDIOS||1 ROOM||2 ROOMS||3 ROOMS||4 ROOMS|
Real estate appreciation in the Jacksonville real estate market is tangible as value has risen by 75.48% since Q1 of 2000, which is an average annual home appreciation rate of 2.96% according to NeighborhoodScout. Zillow reported a 6.4% increase in home values over the past year, meaning Jacksonville homes continue to enjoy appreciation. Still, Jacksonville property prices remain relatively affordable compared to other top markets in the US. That’s why buying an investment property in Jacksonville makes for a good real estate investment.
The Jacksonville housing market is currently a very hot seller’s market. Housing inventory is currently low, while demand from homebuyers and real estate investors continues to rise as the population grows. This is the perfect time for those considering selling their property as they could secure a sale price that’s higher than their listing price due to the high demand.
The popularity of Airbnb vacation rentals in Jacksonville has surged over the past few years, among both hosts and guests seeking accommodation. In Duval County, the county where Jacksonville is located, the Airbnb income and guest count doubled in a year. Duval County Airbnb hosts earned a total of $11.6 million welcoming 83,000 guests in 2018, up from $6.1 million and 42,600 guests in 2017.
Up until now, the city of Jacksonville has not enforced any laws to regulate the use of short-term rentals. However, members of the City Council have recently put forward a bill seeking to create a registration system and establish rules around short-term rentals. If approved, the bill would outlaw non-owner occupied vacation rentals, limit the number of bedrooms for rent to three, and impose Airbnb bed taxes.
For the time being, Airbnb rentals remain fully legal in the Jacksonville housing market. Nonetheless, state law requires that all non-owner occupied vacation rentals in the state be licensed through the Florida Department of Business and Professional Regulation (DBPR). Hosted rentals, i.e. short-term rentals while the host remains on-site, are not regulated by the DBPR, and hence do not require a license.