Jacksonville Multifamily Report – Winter 2019

New apartments are being absorbed at a rapid pace across the metro, which ranks among the nation’s top major markets for rent growth.
Jacksonville rent evolution, click to enlarge
Jacksonville rent evolution, click to enlarge

Strong multifamily fundamentals are drawing investors and developers to Jacksonville, with the metro ranking among the nation’s top major markets for rent growth. New apartments are being absorbed at a rapid pace, indi­cating that supply has yet to catch up with the growing demand.

READ THE FULL YARDI MATRIX REPORT

Sustained by a diversified economy, employment and population gains con­tinue to outpace national averages. Job growth in the 12 months ending in October was led by education and health services, which added 3,900 posi­tions. The trend is set to continue as new developments come online, includ­ing Jacksonville University’s 105,000-square-foot medical arts and health sciences building in Arlington, a $55 million facility for St. Vincent’s in River­side as well as Flagler Hospital’s and Baptist Hospital’s upcoming projects in Nocatee. Boosted by rising tourism numbers, leisure and hospitality gained 3,100 jobs, while construction added 2,100 positions.

Jacksonville sales volume and number of properties sold, click to enlarge
Jacksonville sales volume and number of properties sold, click to enlarge

Multifamily sales topped $1.2 billion in 2018 and investor appetite should remain significant this year, thanks to the market’s attractive acquisition yields and high occupancy rates. Strong in-migration and a healthy employ­ment climate, which led to a surge in new developments in 2018, are poised to continue. With 1,800 apartments slated to come online in 2019, Yardi Matrix expects the average Jacksonville rent to advance 3.3 percent this year.

Read the full Yardi Matrix report.