Jacksonville, Florida

Jacksonville real estate prices are more affordable than many other U.S. cities today

• In January 2017, the median price of three bedroom homes in Jacksonville was $154,000. This is 21% lower than the national average of $187,000.
• In the Jacksonville neighborhoods where Real Wealth Network members invest, the median price of 3 bedroom homes in January 2017 was $113,000. This is 18% lower than the national average of $187,000.

In some Jacksonville neighborhoods, it’s possible to generate strong monthly income

• In January 2017, the median monthly rent of three bedroom homes in Jacksonville was $1,200, which is 0.78% of the median purchase price of $154,000. This is slightly higher than the national price-to-rent ratio of 0.74%.
• In the neighborhoods where RWN members invest, the median monthly rent for three bedroom homes in January 2017 was $1,045, which is 0.92% of the $113,000 purchase price.
• Bonus: In addition to affordable home prices and high monthly rents, Jacksonville also has no state income tax and one of the lowest property tax rates in the nation. These are all good indicators of a great cash flow opportunity.

Over the last five years, Jacksonville home values have appreciated at a faster rate than other cities across the nation

• In January 2012, the median price of three bedroom homes in Jacksonville was $111,000.
• In the past five years (Jan. 2012 to Jan. 2017), three 3 bedroom homes in Jacksonville have appreciated by 39%.
• During the same five-year period, three bedroom home values increased by only 29% nationwide.

Over the last five years, the median monthly rent for three bedroom homes has increased by 12%, which is just slightly slower than the national average

• Between January 2012 and January 2017, the average rent for three bedroom homes in Jacksonville increased by more than 12%. This is a slightly lower rate than the 14% national rate during this period.
• Bonus Fact: The data above shows us that Jacksonville is still an affordable place for buyers and renters but it probably won’t stay this affordable for long. If the population continues to grow rapidly — which seems likely (see Population Trends tab) — it’s only a matter of time before demand overtakes supply, driving up home values and rents. And this is good news for real estate investors today.

Jacksonville’s population is growing more than twice as fast as the national average

• Between January 2010 and 2016, Jacksonville’s population increased by just under 9.57%. This is more than double the national average of 4.45% during the same period.
• This shows us that the demand for housing should continue to rise in Jacksonville. More people equals more renters and more buyers. More renters and more buyers leads to higher rents and home values.

Jacksonville is creating jobs at a faster rate than other cities in the United States today

• Between December 2015 and December 2016, Jacksonville created almost 20,000 jobs — an annual growth rate of 3.0%. This is higher than the U.S. annual job growth rate of 2.31%.
• The industries with the most job growth in the Jacksonville area over the year were professional and business services, adding 6,100 new jobs, and education/health services, which added 5,600 new jobs.
• The Jacksonville area also had 18,430 openings, including 4,973 openings for high-skill, high-wage STEM occupations.
• In recent news, Amazon is adding a second fulfillment center in the city, which is expected to add more than 1,000 new jobs.
• This data shows that JAX is experiencing faster job growth than most other U.S. cities today. Furthermore, it’s likely this trend will continue as people and businesses continue moving to the area for its year-round sunshine, open space, and low taxes (zero income tax and a flat corporate tax rate of only 5.5%).

Jacksonville is Affordable

• Property values in Jacksonville are more affordable than many other U.S. cities today. This is especially true in the neighborhoods where RWN members are investing.
• In the Jacksonville neighborhoods where RWN members invest, in January 2017, the median price of three bedroom homes was $113,000. This is 18% lower than the national average of $187,000.
• Jacksonville stands out from these other markets because it also offers great cash flow and a strong potential for future equity growth.

JAX is Great for Cash Flow

• Jacksonville metro area offers investors the opportunity to generate more rental income than many other U.S. cities today, especially in the areas where RWN members invest.
• In January 2017, in the neighborhoods where RWN members invest, the median monthly rent for three bedroom homes was $1,045, which is 0.92% of the $113,000 purchase price.
• Jacksonville also has lower taxes than most of the country — zero income tax and a flat corporate tax rate of only 5.5% — which are positive factors in creating a strong cash flow opportunity.

Jacksonville is Growing Quickly

• Between January 2010 and January 2015, Jacksonville’s population increased by just under 8%.
• Between December 2015 and December 2016, Jacksonville created almost 20,000 jobs, an annual growth rate of 3.0%.
  JAX is experiencing faster population and job growth than most other U.S. markets today. It’s likely this trend will continue as both people and businesses continue moving to the area for its year-round sunshine, open space, and lower cost of living.

Jacksonville Equity Growth is Likely

• In the last five years, three bedroom homes in Jacksonville have appreciated by 39%, versus 29% nationwide.
• Between January 2012 and January 2017, the average rent for three bedroom homes in Jacksonville increased by more than 12%. This is a slightly lower increase than the national average of 14% during the same five-year period.
• While Jacksonville home values are still below their pre-recession peaks, it most likely won’t stay this affordable for long. If the population continues to grow rapidly (which seems likely), it’s only a matter of time before demand overtakes supply, driving up home values and rents.