Investing in Jacksonville – Following the Migration
Despite recent rate reductions, would-be home buyers are currently shopping in one of the least affordable housing markets the US has seen in decades. The problem is compounded in historically populated metros such as Chicago, San Diego, New York, Detroit, and Boston, where skyrocketing prices, higher than expected interest rates, and wage stagnation have contributed to an ongoing housing crisis.
The end result? Many buyers who would have traditionally settled in those more popular metros are looking elsewhere for savings, even if it means moving to a different city, state, or even region of the country to find them.
Where are people moving?
The ongoing hunt for housing affordability has driven a strong migration flow into Southeastern states such as Florida, North Carolina, South Carolina, Tennessee, and Texas according to the National Association of Realtors vice president of research Jessica Lautz.
A Zillow group analysis of the cities receiving the most inbound moves includes Charlotte NC, Providence RI, Indianapolis IN, Orlando FL, and Jacksonville FL among the top 10.
What’s Causing Jacksonville’s Growth?
Jacksonville, Florida ranks as number 6 on Zillow’s top 10 cities for Inbound movers in 2023, just behind Raleigh, NC and in front of Nashville, TN. While there are plenty of economic factors driving the city’s growth, such as high paying skilled jobs in healthcare, fintech, and infrastructure development, as well as Florida’s lack of state income tax, housing affordability is a major driver.
Jacksonville’s single family real estate market continues to face a low supply of active listings, but the size and Scale of Jacksonville’s landmass makes it a mecca for builders. The ability to live close to a city center in an older renovated home, or newly built home in a recently developed suburb on many budgets is appealing and not widely available in other metros. The result has been a semi-stabilization, with Jacksonville remaining one of the cheapest markets in Florida based on median home prices.
According to a report by CNBC, those who moved from a more competitive metro to one of these less competitive markets, such as Jacksonville, saved $7,500 on average when purchasing.
The combination of stable high wage job growth and a semi-stable and affordable housing market has created a perfect storm for attracting migrants in the short term. But revitalization projects and new investment opportunities in Downtown Jacksonville present a positive outlook on long term growth.
Opportunities for Investors
We obviously have a horse in the race when it comes to the discussion of the investment viability of the Jacksonville market. But we’ve been investing in Jacksonville Florida since 2008, and it’s our primary market, so some of the results speak for themselves.
Ultimately, it is still our position that Jacksonville remains one of the most overlooked opportunities for real estate investment, despite the recent uptick of investor activity. The sheer scale and scope of the landmass and population ensures that finding deals is always possible, even when there’s competition around investors, flippers, real estate agents, and institutions.
There is no crystal ball, but the signs all point to growth. Heavy migration from expensive markets – mostly of higher wage individuals in specialized fields served by Jacksonville’s extensive business sector, one of the most affordable major metropolitan areas in the continental United States, beaches, popular sports franchises, and a burgeoning downtown scene make a strong case for the future. Good news if you are a Jacksonville investor or Jacksonville Wholesaler.
About Wholesale Realty
Wholesale Realty is a fully licensed full service real estate brokerage based out of Jacksonville, Florida. Wholesale Realty specializes in the acquisition and sale of investment viable single family homes, multi-family properties, condominiums, and land. Our clients include real estate investors, landlords, property managers, and institutional buyers looking for highly vetted and clean off-market and on-market inventory. The views and opinions presented in this article are the views and opinions of the author only, and may not reflect the views of Wholesale Realty, LLC and/or its affiliates. This content is in no way intended to be financial or real estate advice, and is intended for entertainment purposes only.