Why Jacksonville

Despite significant moves in the housing market since the recession, homes in Jacksonville remain affordable relative to other Florida markets and the rest of the U.S. The average home price in Jacksonville is $168,300, which is nearly 30% lower than the average home price in the U.S.

In addition to strong HPA forecasts, Jacksonville ranks among the top 10 markets for household and employment growth in the U.S. In 2015, household growth in Jacksonville was 2.3%, which is ahead of the national average of 1.4%, and employment growth was 3.6% vs. the national average of 1.7%.

Another factor that makes Jacksonville a great Single-Family Rental (SFR) investment market, is that it has above average gross rental yields relative to other U.S. SFR markets. Gross yields in Jacksonville averaged 10.3%, which is well above the national average of 9.2%

Jacksonville Investments

Jacksonville is the 40th largest U.S. metro area, spanning 5 counties with an estimated population of 1.4 mm people. The market has experienced significant recovery since the recession, with home values increasing over 45% since 20121. However, home values still remain over 15% below the prior peak and are expected to increase an additional 12% by 20192. This puts Jacksonville near the top of the list in terms of home price appreciation (HPA) potential over the next 4 years.

Opportunity

  1. HPA and rent growth: Some of the strongest home price appreciation and rent growth forecasts in the nation.

  2. Gross yields: Above average, relative to other U.S. markets.

  3. Decreasing foreclosures: Home foreclosures in Jacksonville decreased by 39% over the last 12 months, supporting increasing home values in local neighborhoods.

  4. Jacksonville is the largest city in the continental U.S. with over 840 square miles.

  5. Celebrity investors and investment groups such as Magic Johnson, Dan Gilbert, Fernando Palazuelo and DDI Group count in the influx of international and national funds into Detroit.

  6. Major Markets like Miami, New York City and Los Angeles can be expect to capitalize at a rate of 4.5 to 6 percent. Detroit capitalization rates are between 6.75 and 7.75 percent with the best investment-grade properties in prime locations having rates of 7 to 8.5 percent.