Jacksonville, FL, Multifamily Market Report
Market Overview
Jacksonville’s multifamily market has recently seen significant growth, with an influx of new supply in the past year, and remains a strong market for absorption, particularly in emerging areas. The competition among developers has dampened near-term rent growth, but the forecast suggests a return to growth by the end of 2024. While investor enthusiasm slowed in 2023 due to various factors, Jacksonville remains a promising market for multifamily investment and offers opportunities for capital investment. Jacksonville is the best MSA in the state for household income and employment. Mixed with one of the lower rent costs compared to other major markets in the state, Jacksonville has significant rental upside potential.
In Jacksonville’s metro area, the demand for rental properties has been driven by robust population and employment growth, ranking among the strongest in the nation over the last five years. This trend is anticipated to persist in the near future, further bolstering the region’s momentum.
Market Performance
Construction activity remains robust, with 9,300 units underway, contributing to an 8.0% expansion in total inventory. This inventory should see no problem being absorbed as the population growth in Jacksonville continues to outpace the rest of the country, with a population growth of 1.2% over the last 12 months. In the past few years, Jacksonville has been a prime target for capital investment, a trend that will likely continue in the upcoming years.
Growing attention from domestic and foreign buyers in the market has attracted private equity investors to Jacksonville, constituting approximately 10% of total sales volume in the past year. Jacksonville has consistently exceeded $1.2 billion in annual volume for five consecutive years, setting a record, and has maintained high liquidity over the last decade, making it a popular choice for multifamily investors.
By The Numbers | Last 12 Months | Source: CoStar Group
- Units Delivered: 7,744
- Sales Volume: $855M
