“Up and coming area”
- Third largest military presence in the country
- Named 1 of the top 5 “Up and Coming” cities in America by GMA
- Projected annual job growth of 2.5%
- Large tourism and golf industry
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Jacksonville has many positive attributes that makes it a good option to consider for rental property investment. Florida State laws, and Duval County, in particular, are favorable to landlords and investors. Cost of living remains low, the job market is strong, and business is booming in this city. It also has the fastest growing population for a city in the state of Florida with 68,000 residents added since the 2010 census.
The city is family-friendly, has a diverse and growing job market, good universities and hospitals, and offers plenty of activities and entertainment for residents to enjoy.
Why Invest in Jacksonville Income Properties?
While some markets in Florida state are near cyclical highs, Jacksonville is still well below peak pricing and offers steady, predictable cash flow.
Jacksonville has five key factors for favorable rental property investment: a strong economy, a growing population (due to both jobs and relocation by retirees), affordability (particularly for a coastal city), desirability, and a healthy demand for rental properties.
Jacksonville has a diverse economy with low unemployment rates, plenty of universities and hospitals, nearby naval stations, and a thriving port and shipping industry. Jacksonville sits at the intersection of I-95 and I-10 and is a rail, ship, and truck logistics hub. The financial and tech industry is growing, with several companies relocating here recently to avoid high taxes and overbearing regulations elsewhere, and the population is solidly middle class.
How to Invest in Jacksonville Turnkey Properties
Jason Hartman offers clients the resources they need to find the best properties in Jacksonville. This is a linear real estate market that hasn’t seen the extreme ups and downs of cyclical markets that we’ve seen in other coastal cities, such as Miami and Los Angeles. Jacksonville has historically offered steady appreciation and consistent cash flow rather than large fluctuations in value found in cyclical markets like New York City and Miami.
Quick Facts About the Jacksonville Market
- The median household income in Jacksonville is $51,497, and the cost of living is lower than average.
- Jacksonville has a number of Fortune 500 companies based in the city, with a new one, FIS, recently announcing their intention to build their global headquarters there. Of companies on Forbes’ Global 500 list, 13 have an operational base in Jacksonville.
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Jacksonville Economy
Jacksonville’s unemployment rate is lower than the national average. It is the 5th fastest growing economy in the country. This means there is a large pool of good tenants with reliable income.
The local government offers tax rebates to industries that relocate to the Jacksonville area, which has spurred strong economic growth. This city is also home to important healthcare, military, and university entities, which also contribute to its strong economy.
Jacksonville Employment
Jacksonville offers strong employment rates and a good diversity of employment opportunities. The city is not dependent on any one industry, or even type of industry, for economic success. The main economic drivers are the healthcare, military, education, and logistics industries.
Jacksonville offers jobs in construction, manufacturing, wholesale and retail trades, finance, leisure and hospitality, utilities and transportation, and information technology, and Jacksonville has the nation’s fourth-best employment outlook for the first quarter of 2019.
Healthcare Industry
The healthcare industry consists of 47 hospitals in the larger Jackson area.
Military Installations
There are multiple military installations nearby that employ a large number of renters with reliable income.
Logistics
The port industry is strong, and many rail and trucking logistics companies are conveniently based at the intersection of I-95 and I-10.
Education
Jacksonville is home to 18 institutions of higher education.
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Entertainment and Activities
Jacksonville offers a lot for residents. It’s a popular beach destination, but that’s just the beginning of what Jacksonville has to offer.
Culture and the Arts
There is a strong film festival culture and regular music events throughout the city. There are dozens of theaters as well as boutique galleries and museums. Jacksonville considers itself one of the top art cities in the southeast.
Sports and the Outdoors
The city is home to the Jacksonville Jaguars NFL football team and hosts minor league baseball, soccer, and basketball teams. Jacksonville offers more than 88,000 acres of parks with 400 city parks and two national parks in the area. It’s a popular spot for bird watching, hiking, fishing, water sports, and many other outdoor activities.
Food and Drink
Jacksonville is also increasingly becoming a destination for food lovers looking for locally sourced and sustainable seafood and farm food. A number of craft breweries have opened up in recent years, and Jacksonville is becoming known as a melting pot of cultures and tastes. In 2016, Forbes named it one of their 5 Surprising Foodie Cities to Visit Right Now.
There is a planned $2.5 billion development at the Jacksonville Shipyards near the stadium which will consist of “4.25 million square feet of best-in-class dining, entertainment, retail, office, hotels and luxury residential living”.
Universities and Colleges
Jacksonville is home to several colleges and universities, some of them very highly ranked. Every year, the city holds what it dubs “The Largest Outdoor Cocktail Party” to celebrate the Florida Georgia college football game. Jacksonville does not have the same “beach town” reputation as some other places in Florida.
Frequently Asked Questions
Is Jacksonville Hurricane-Prone?
While Florida, in general, is certainly prone to hurricanes, Jacksonville’s location in the northeast corner of the state is better protected. Hurricanes are less likely to hit this area directly compared to the rest of Florida or even the rest of the Southeast coast.
Is Jacksonville Friendly to Landlords?
The state of Florida and the Duval County area of Jacksonville, in particular, are very favorable towards landlords. There are few restrictions in place that would limit getting a fair market price for your rental or make it hard to get rid of a bad tenant.
Judges tend to rule on the side of the landlord, and the Duval County Court outlines steps for the eviction process on their website to make it easy to stay in compliance and get evictions finished quickly. Hearings are usually scheduled within a short time, and in Florida, the sheriff can be called in to evict a tenant if they don’t move within 24 hours of a judge’s ruling.
Tenants are required to deposit all unpaid rent with the court until cases are resolved. If a case resolves in the landlord’s favor or the tenant loses by default, that money is released.
What Is the Cost of Living Like?
Jacksonville has a lower-than average cost of living. For landlords, rents are reasonable, but they’re not too high for residents, meaning rent is not an unreasonable percentage of resident income.
Will My Jacksonville Investment Property Appreciate?
As a linear market, Jacksonville typically sees a slow and steady rate of appreciation compared to cyclical markets like Miami. Jason advises investors to focus on cash flow properties that make sense the day you buy them so you don’t have to rely on appreciation.
What Are Taxes Like?
Taxes are generally low in Florida, and there is no state income tax. Property taxes in Duval County are lower than average. The city of Jacksonville also offers attractive corporate tax rebates that encourage businesses to relocate and hire employees in Jacksonville.
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Additional Resources
To learn more about Jacksonville and why it’s a good place to invest in real estate, check out:
Top 5 Reasons to Invest in the Jacksonville Rental Properties in 2019
CW 1204: Jacksonville & St Augustine Market Profile & Market Cycles