Resting along the Atlantic Ocean in northeast Florida with more than 20 miles of pristine beaches, Jacksonville is more than just an oceanfront paradise. WalletHub.com recently ranked Jacksonville, Florida as the best U.S. city to start a new business in. Home to the largest urban park system in the United States, a thriving craft beer scene, a vibrant nightlife and exceptional business opportunities, it's no wonder Jacksonville continues to attract residents of all types.
Q2 2015 Jacksonville Rental Market Update
In Q2 2015, Jacksonville was the 11th-best housing market for rental real estate investment in the Southeastern U.S. and 53rd-best in the country as a whole. Since Q1 2015, Jacksonville jumped one spot in the Rental Ranking Report's regional rankings for the Southeastern U.S. but fell two spots in the national rankings.
The Jacksonville rental real estate market is far from perfect. Both Jacksonville's annual rental price appreciation (1.54 percent) and vacancy rate (12.50 percent) were significantly worse than those metrics' respective national averages in Q2 2015. The median age of Jacksonville's housing inventory, 73 days, was also about 10 days longer than the national average for that metric.
Regardless, Jacksonville rental real estate can still be a lucrative investment for those who own it. Local property values jumped an impressive 7.97 percent in Q2 2015, an increase around 60 percent higher than the national average for that metric and one of the best property value appreciation rates in the country during that time period. Demand for Jacksonville housing is likely to only continue to increase as it has experienced strong job growth - a year-over-year increase of 2.40 percent in Q2 2015, which was about 20 percent higher than the national average. So, while Jacksonville is hardly the best market for rental real estate investment in the country, or even the Southeastern U.S., it can still offer good returns to those who choose to invest there.
Q1 2015 Jacksonville Rental Market Update
All Property Management's Q1 2015 Rental Ranking Report shows that Jacksonville is the 12th best city in the Southeast for rental real estate investors, and 51st out of 75 rental markets nationwide.
Jacksonville benefits from the strong recent home price appreciation experienced by many coastal Floridan cities. House prices in Jacksonville have increased 8.13 percent, placing Jacksonville at a respectable 17th in the country for that metric. Property taxes are on the high side, but these taxes are offset by the fact that Florida does not have a state income tax, making it a tempting destination for rental real estate investment dollars, including real estate IRAs and self-directed 401(k)s and other retirement accounts.
For those considering buying rental properties in Jacksonville, know that the median age of its housing inventory - the median number of days homes have been on the market - is 70 days, exactly equal to the national median.
What data is this Rental Ranking Report based on?
To calculate the statistics found in the Q2 2015 Rental Ranking Report, All Property Management gathered data, including the most recent government housing and jobs data, for 75 metros across the United States. Specifically, we looked at home vacancy, capitalization, home value appreciation and job growth rates, changes in rental prices, and the average number of days properties have been on the market to determine which U.S. metros will give investors the highest returns on rental investments. Click here to learn more about the Rental Ranking metrics.
Should I invest in Jacksonville rental property?
Quite simply, this is the best time in recent memory to invest in rental real estate in the Jacksonville metropolitan area. Florida is recovering nicely from the recession, and solid job growth, paired with stellar home value appreciation, indicates that investors can expect rental properties in Jacksonville to pay off in both the short and long terms.
Thinking about renting out a property in Jacksonville? Save time, avoid hassle and maximize your rental income by having a professional property management company operate your rental property for you. Click here to get a free quote from a local property manager or call 877-780-4510 to have the All Property Management staff get quotes for you.
All Property Management specializes in connecting rental property owners with professional property managers in communities across the United States. These property managers help set rental rates, advertise properties, screen and manage tenants, collect rent, manage vendor relationships and ensure compliance with local, state and federal housing regulations. They take the hassle and worry out of managing rental properties - all while maximizing rental property owners' rental incomes.