Whether you're a new transplant, a long-time resident, or an outside investor and you're looking around the Jacksonville area for your next investment property, you've made a smart decision! As one of the more appealing real estate markets in the country right now, the Jacksonville area is a great place to invest for many reasons—don't miss out on the opportunity to own your slice of sunshine! Here are five good reasons why you should consider the Jacksonville area for your next investment.
The Area Is Growing—and Fast!
Because real estate as a business depends on home buyers and renters, investing is impossible without a stable population base as a foundation. The best markets are those that are projected to grow steadily—and sustainably—and deliver similar returns. Jacksonville fits the bill perfectly: the city grew by 2.5% in 2017, and approximately 44% of the population rent the homes they occupy. Jacksonville is the biggest city in Florida and is ranked 12th in the nation, which means that you have a large group of potential renters from which to draw. All of these factors add up to a reliable real estate investment market. If that wasn't enough, the Jacksonville area houses 34,000 military-affiliated personnel who all need somewhere to live. The nearby Mayport Naval Station is projected to bring in thousands of jobs (and workers to fill them) over the next five years.
Business Is Booming
Florida has one of the strongest economies in the nation, ranking fourth behind California, Texas, and New York. With a strong economy comes jobs and eager workers, and with Jacksonville ranked highly on metrics for future job growth, you can expect the strong economy to influence housing market predictions in the years to come. Recent stats indicate an annual rate of employment growth in the Jacksonville area of roughly 3.6%. With employment and population growth trending in the same direction, you can expect a stable investment market in the coming years. Even with the strong economy and population growth, the Jacksonville area features a relatively low cost of living and affordable housing when compared with many cities on the East Coast.
The Housing Market Is Affordable—for Now
Jacksonville features remarkably affordable housing at this moment in time. Recent data puts the median home value in Jacksonville somewhere in the area of $200,000—even in some of the best neighborhoods, you may find prices well below these rates. Median rent per month comes in around $1350 a month for Jacksonville renters, which means that the city is affordable for both you as an investor and your prospective tenants! Given the city's population growth, affordability is one of the metrics that are most susceptible to change: home prices are expected to rise by about 4.4% percent over the next year. This rate is approximately double the national average, so it may be a wise choice to move on your Jacksonville investment property sooner rather than later.
The Sunshine State's Appeal
Merely being a major city in Florida goes a long way towards making Jacksonville a hot real estate destination. While population and job growth metrics are a significant part of Jacksonville's appeal, there's more to it than those numbers; Florida is famous for its beaches and sunny weather, and the area will always draw those looking for some fun in the sun. Florida’s status as a hot real estate market means there will always be a demand for investment property in the Jacksonville area, from snowbirds looking for vacation home rentals, to retirees looking to settle down somewhere a little warmer.
When making investment decisions, you want to think in terms of long-term returns on your investment, and the Jacksonville area market is well suited to provide that—especially if your target tenants are families or older retirees. Focusing your rentals on single professional adults or college students can force you to deal with high tenant turnover; working with families or retirees who intend to stay in place for some time allows you to secure long-term leases. Jacksonville's suitability for long term renters will let you capture that stability for your investments. The Jacksonville area is an excellent choice for your next (or first) real estate investment: if you're interested in taking action, what should you do?
Bring in a Local Property Management Expert
A Jacksonville property management company can be an enormous asset to you as you make investment decisions in the area. They'll be able to offer knowledge of market trends and demographics and will have the skill to guide you through your initial investment decisions. When you're ready to close on a property, they'll help you get it on the market, make it available for renters, and keep it filled with paying tenants. Finally, they'll handle the daily tasks that go into managing your property, from routine or emergency maintenance to rent collection—a good local property manager will be with you every step of the way along your path to investment success.
If you're ready to invest in the Jacksonville area—or you've closed on a property already—don't miss out on the help you need to get your property tenant-prepped and perfect: download our FREE Make-Ready Checklist!