Jacksonville, FL

Market Update

Jacksonville's population has shown a robust growth trajectory, increasing from approximately 1.64 million in 2021 to about 1.76 million in 2024, reflecting a year-over-year growth rate of 2.76%. This upward trend is supported by a net migration of 37,400 residents, contributing to a diverse and expanding labor market, which currently boasts an employment figure of 867,550 and an unemployment rate of 4.6%. The median household income stands at $82,053, while the renter share is 32.6%, indicating a significant demand for housing in the area.

In the multifamily sector, the median gross rent is reported at $1,625, with year-over-year rent growth at 1.2%. The HUD Fair Market Rents for a two-bedroom unit are benchmarked at $1,771, which is slightly above the median gross rent, suggesting a degree of affordability pressure for renters. The modest rent growth, coupled with the relatively high median gross rent, points to a market that is experiencing stable demand but may face challenges in maintaining affordability as population growth continues.

Capital markets for Jacksonville's real estate show multifamily cap rates at 6.97%, which is roughly 30 basis points tighter than the national median of 7.04%. Over the trailing 24 months, there have been 196 transactions with a total volume of approximately $444 million, resulting in a median price per unit of $145,000. This pricing reflects a significant discount of about 27% compared to the 50-market median of $200,000 per unit. The current market dynamics suggest a cautious but steady investment environment, with potential for continued interest as demographic trends evolve.