North Florida Multifamily Market Report
North Florida Market Overview
The Jacksonville metro’s economy remains in strong standing, with the education and health services, leisure and hospitality, government, and construction sectors leading job growth this year. There are more than 300,000 employees in just these segments alone. Employee growth in these sectors could likely be a factor that contributed to Jacksonville landing in sixth place for the top U.S. markets for renter demand. During Q124, the metro noted the strongest quarter for apartment demand in more than two years.
Jacksonville
Jacksonville By the Numbers Last 12 Months
- Vacancy Rate: 13.7%
- Delivered Units: 8,251
- Absorbed Units: 5,539
- Sales Volume: $735M
Market Performance
A slowdown in the number of units being developed will aid vacancy stabilization in the latter half of the year and into 2025. In recent years, construction starts were making Jacksonville stand out as the metro was seeing some of its largest levels of supply additions. Yet, these levels have begun to decline with about a 70% decrease within the past year. Southside, one of Jacksonville’s largest submarkets, has remained in a strong position for construction and sales. The area has around 2,200 units under construction, which will grow its inventory by 5% upon completion.
Residents are drawn here for work, due to the metro’s growing economy, low cost of living, top hospitals, and endless outdoor activities. The leisure and hospitality segment attracted the most residents as employment here increased by 5.02%, which is greater than the historical average of 2.38%. The influx of residents moving to the metro for employment aided in stabilizing the vacancy rate. Strong renter demand led to the absorption of more than 3,700 units in just the first half of the year. New residents are flocking to the Southside area, bringing down vacancy here as this submarket noted an increase in supply.
Throughout the past year, 42 multifamily sales occurred in Jacksonville, leading to an average price that is over $24 million. In regards to sales, Southside draws many investors due to its centralized location and ease of connectivity to all parts of Jacksonville. Over the past 12 months, the submarket has seen more than 50% of investment activity in the entirety of the Jacksonville metro. The largest sale in Jacksonville this year was in the Southside submarket. Avere Southside Quarter—a Class A property—sold for $78 million, with a per unit price of $242,700.
St. Augustine
St. Augustine By the Numbers Last 12 Months
- Vacancy Rate: 21.2%
- Delivered Units: 1,388
- Absorbed Units: 1,239
- Sales Volume: $126M
Market Overview
The metro has noted a large influx in its population as it has grown by more than 50% since 2020. A factor that has drawn families here is the public school system. St. Johns County is ranked as one of the top educational systems in North Florida, leading to an increase in the population.
Market Performance
Supply and demand figures remain varied in St. Augustine, but vacancy has noted a decrease of -2.0% in the past 12 months. This decrease in vacancy is attributed to high levels of renter demand. About 1,200 units were absorbed in 2023, and forecasts call for more renter demand to end this year, leading to more balance in vacancy. Renters will also note an increase in concessions here to stabilize the rental rate, which has noted an uptick compared to previous metrics.
St. Augustine is noting one of the highest levels of incoming supply. Five properties will be completed in September, adding 1,396 units to the metro. These properties are a mix of Class A and B apartments. Due to the increase in supply, sales activity has been low. However, a Class B property was sold this May for $70.2 million. It is made up of 350 units and is 88% occupied.
Palm Coast
Palm Coast By the Numbers Last 12 Months
- Vacancy Rate: 6.3%
- Delivered Units: 4
- Absorbed Units: 4
- Sales Volume: $0
Market Overview
Palm Coast is the most populous city in Flagler County. According to the U.S. Census, the population here was at 98,411 as of 2022. The average household income here is $114.5K.
Market Performance
The majority of households here are single-family properties, which leads to the small amount of multifamily properties. There are only 12 units of inventory that make up two buildings delivered within the past two years. These deliveries belong to the Class B and C segments.
In May, the Palm Coast City Council approved a 264-unit complex. The units here will be split up among 10 buildings, and each building will have 24 or 36 units.
Florida was ranked as the No.1 economy in the U.S. for 2024 by CNBC.
