Real Estate 101

Investing in Real Estate in Jacksonville, Florida: Key Statistics

There are plenty of well-known cities throughout the Sunshine State that investors tend to flock to. Miami, Tampa, and others often take most of the attention. But there’s another populous city with massive potential for investment profits: Jacksonville.

Truth be told, Jacksonville may be one of the best cities to invest in real estate in Florida overall thanks to its current real estate market and the potential for long term developments. Let’s explain why it could be an excellent choice to invest in real estate in Jacksonville, Florida.

Why Jacksonville is One of the Best Florida Cities for the Real Estate Investment Market

Located in the northeastern part of the state, Jacksonville is often overshadowed by some of Florida’s more popular destinations. However, its diverse economy and geography make it a top spot for real estate investors.

Jacksonville is the largest U.S. city by landmass. It spreads across seven counties, boasts more than 1.2 million residents, and is quickly emerging as one of Florida’s top new tourist destinations. The city is also home to numerous beaches and world-class golf courses as well as several military bases and an international trade seaport.

Beyond warm weather, sunshine, and the ocean breeze, Florida overall is a popular location for investors because it’s one of the few states that doesn’t impose an income tax. Because of this, Jacksonville has grown into a business-friendly environment with strong healthcare and thriving bioscience sectors.

Key Factors Affecting Real Estate Investing in Jacksonville

If you’re looking for the next place to expand with your portfolio, you might wonder why Jacksonville specifically should draw your attention. In our opinion, there are a few big reasons why Jacksonville may be worth your investment cash, even compared to similar cities in Florida like Miami.

It’s a Seller’s Market

The first major thing to keep in mind: the Jacksonville, FL real estate market is a seller’s market. That's not the best indicator for a new or incoming investor, but it’s something to consider when planning a portfolio expansion in this area.

The median listing home price for a single-family property in Jacksonville, Florida is $300,000. On average, homes actually sell for $302,200. Put another way, sellers are often able to secure slightly higher prices from buyers than buyers are able to secure lower prices from sellers.

In addition, the average amount of time a property spends on the Jacksonville real estate market is 60 days: 22 days more compared to the same time last year. Sellers have to make their properties attractive to buyers, but once they do so, they are able to command the prices they desire.

Of course, this shouldn't stop you from investing in Jacksonville real estate if you have a worthwhile financial partner. If you have enough capital to make an attractive cash offer, you could scoop up the best properties in the area quickly without having to compete with many other investors.

Long-Term Rental Investment Opportunities Are Strong

The Jacksonville, FL real estate market might be doing fine, but there's no denying that the current rental market is fairly soft. In fact, there's an overall 2024 rental vacancy rate of 11%, which represents an increase of 9.5% compared to 2020.

Note that this is partially due to the sheer number of new homes and multifamily residences constructed over the last few years. Still, this means that tenants looking for properties have no shortage of options to choose from and can be fairly picky, which further slows down tenancy rates.

But there's a bright side to this current market condition. If you find good multifamily or other single-family rental properties to purchase, you can use the current slow period to make improvements and prepare for the inevitable swing in the other direction. We believe Jacksonville’s rental market is due to become hotter and more competitive in the next year or so.

New Construction Is Paving the Way for a Resurgence

That’s because Jacksonville is currently undergoing a real estate surge. Single-family housing permits peaked in the summer of 2021, and have gradually declined since then. In other words, new homes are still being constructed, but the majority have already been built; now they just need buyers and sellers. There's a temporary glut in the market, and that's one you could take advantage of as a real estate investor.

It's also likely that many more people will move to Jacksonville in the short-term future. Downtown and suburban projects totaling over $8 billion in investments should result in a revitalized city and community field, which will eventually attract more job seekers, growing families, and other home buyers or tenants.

All in all, these factors combined mean that while the Jacksonville real estate market is not yet primed for high profits, it's very probable that it soon will be. With any major real estate investment boom, it's better to get in just before the real action starts.

Fix and Flip and New Construction Loans in Jacksonville, FL

As you can see, there are plenty of reasons to consider investing in real estate in Jacksonville and the surrounding area. No matter what your plans might be, you'll find it easier to attain success with a reliable, knowledgeable financing partner at your back. That's why we offer a variety of loan solutions for investors in Jacksonville and beyond.

For investors looking to take advantage of new opportunities, Lima One’s new construction loans give investors the freedom to add ground-up construction and recently built homes to their investment portfolios. Alternatively, our fix and flip loans are perfect for investors with their eyes on buying properties that need a little fixing up before selling them for massive profits.

Ultimately, Lima One can assist with whatever financing solution you might need. Our team of experienced professionals will help guide you through the process from start to finish. Get started today and scale your rental property portfolio with Lima One, the nation’s premier lender for real estate investors.

Editor’s note: This blog has been updated as of December 2024 for comprehensiveness