A southern market poised for growth in 2019.
Jacksonville, Florida, spent 2018 quietly living up to its nickname, “The Bold New City of the South,” and is poised as a significant real estate investment destination in 2019.
“We believe Jacksonville is one of the best real estate markets in the country, with 24.1 percent population growth since 2000, projected future job growth of 39.1 percent over the next decade, median home prices about 23 percent less than the national average, and rental rates on a typical $100,000 home about 20.31 percent more than the national average.”
Rich Fettke, co-CEO of Real Wealth Network
The city has also experienced steady geographic expansion along with steady population growth, thanks in large part to a strong healthcare system (20 hospitals and a burgeoning bioscience community), low cost-of-living, and a business-friendly environment.
“Jacksonville is absolutely a growth market for a number of reasons. A trend we’ve seen over the last 12 to 24 months is investors who are interested in Orlando and central Florida are starting to be very interested in the north sector of Florida, up into Jacksonville. With prices in primary markets like Miami and Tampa at peak, investors can still go into Jacksonville and get the same asset or even larger for a greater return on their money.”
Justin West, vice president and regional manager at Marcus and Millichap Orlando
At present, Jacksonville also offers renters some pretty significant advantages. RentCafé’s October report on rental accessibility indicated the city is presently 10th among large U.S. cities for accessible housing stock.
“Along with Raleigh, San Francisco, Omaha, Columbus, and Portland, Jacksonville has improved the accessibility of its rental housing stock by more than 20 percentage points since 2011.”
Adrian Rosenberg, a communications specialist at RentCafé
What does this mean for Jacksonville’s housing market moving forward? Over the next 12 months, this market could tighten and increase in appreciation rates while others loosen and level off. Single- and multifamily investors are already taking notice and taking action.
“Peak Capital Partners recently purchased a nice 350-unit, class B, garden-style apartment complex in Jacksonville, Florida [that is] located in one of the best submarkets in Jacksonville. We are excited about a value-add opportunity that should increase rents between 7 and 10 percent over the next two years.”
Jason Danley, COO of Peak Capital Partners