Jacksonville Housing Market: April 2023 Prices and Trends
Jacksonville’s housing market has fostered a strong environment for real estate investor activity, especially those institutional investors purchasing for a long term rental yield strategy. A may 2023 article published by News4Jax I-TEAM indicates that as many as 9,600 single family homes in Duval County are currently owned by institutional investors. Unsurprising as Jacksonville was named the 6th fastest growing city between 2021 and 2022, and is listed as number six in the 10 Hottest Housing Markets report of 2023 published by Zillow.
Jacksonville is home to major sports franchises such as the NFL team the Jacksonville Jaguars, a robust and celebrated collection of medical facilities, and dozens of Corporate Headquarters, with many of those organizations operating in financial services and fintech. As a result, there is a high demand for skilled labor, with many opportunities for high paying white-collar jobs.
The market data for Jacksonville and Duval County suggests a downward trend, albeit slight. New on-market listings were down 20.5% from April last year and closed sales (on-market + off market) are down 29% from April 2022.
Jacksonville Housing Market
The following data reflects reports from Zillow and NEFAR (Northeast Florida Association of REALTORS®) comparing statistics from April of 2022 to April of 2023.
- New listings down 19.7%
- Closed on-market sales down 18.2%
- Average cumulative days on market rose 144%
- Median sales price fell 2.86%
- Average sales price fell 2.47%
- Average list price rose 5.68%
- Median list price rose 6.62%
- Active listings up 57.4%
Jacksonville’s Rental Market
The following data reflects reports from NEFAR (Northeast Florida Association of REALTORS®) comparing on-market statistics from April of 2022 to April of 2023.
- New listings up 62.3%
- Closed listings up 21.3%
- Average cumulative days on market rose 50%
- Median sales price rose 1.56%
- Average sales price rose 2.83%
- Average list price rose 7.2%
- Median list price rose 1.3%
- Active listings up 91.3%
Jacksonville’s Investor Forecast
Despite the slow down of the Jacksonville market the average value of a home, condo, or townhouse in Jacksonville has actually risen 4.5% year over year from April 2022. Rents have also risen slightly with a higher number of on-market units being rented or listed for rent. Nationally home values have also increased year over year.
While it is unlikely that a return to hyper inflating Jacksonville prices will occur anytime in the near future, it is safe to assume a more traditional, gradual increase allowing for comfortable returns on long term holdings. Rental investors will also find the Jacksonville market somewhat favorable, as high rents and reasonable home prices continue to offer strong yields.
For the fix and flip model, much will ride on interest rates as we finish the calendar year. At the current rates hover around 7% affordability has decreased significantly, souring the buyer pool. Some analysts hint at rates in the low to mid 5s by early December, which would open the flood gates to buyers waiting on the sidelines for more favorable terms. If rates continue to rise, or stay level, buyers may have difficulty keeping up with rising prices, which could cause a short term plateau until the Fed deems the inflation problem handled and begins to cut rates.
Jacksonville expects to continue its growth pattern through the next decade, increasing annually at a rate of 1-1.5%. Currently Jacksonville’s MSA supports more than 1.33 million residents. Jacksonville proper is the 14th largest city by population in the United States, and the largest city by population in Florida.
The demand for housing will continue to grow as the need for high skilled labor, hospitality, and medical services brings new residents to the city. Combined with a stable and healthy supply of inventory, and reasonable value growth, Jacksonville remains an ideal market for investors.
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Northeast Florida Association of REALTORS®
Zillow Home Value Index (ZHVI)