The real estate market in Jacksonville, Florida, has been thriving recently with many homes being built and sold, more investments being made, rents increasing, and new property options becoming more and more available. If you are interested in either buying or selling a home in northeast Florida, and have questions about the latest real estate trend, North Star Mortgage, Inc. can help. Read on to learn more about the current direction of the housing market in Jacksonville, Florida.
Jacksonville’s Prospering Housing Market
The prices of housing have continuously increased in Jacksonville in recent months, and there is a very high demand for available housing. The average housing price in the area is currently over $400,000, which is approximately 30% more expensive than it was a year ago in 2021. Since demand for housing is so high in the area and homebuyers are competing for homes with investors, the market is more competitive. This year, the Federal Reserve has also increased interest rates in order to stave off inflation, which has caused mortgage rates to increase as well. This will more than likely result in more expensive housing costs for the homebuyers in the Jacksonville area. There is also a newer trend in the area involving more and more companies buying properties online from private sellers and then fixing and flipping the homes for a profit.
Jacksonville Is Seeing a Spike In Rental Costs
With home prices on the rise in Duval County, the demand for rentals is also high. Rental costs have increased all across the country since the pandemic, causing many renters to seek home ownership, while causing some to be priced out of the area altogether, although state and local legislation is being passed in order to stabilize rents to curb people from relocating. Because of these rental increases, Jacksonville is currently ranked as one of the best places to purchase a rental property in the United States and vacation rentals like Airbnb have also been a very popular and lucrative way to invest.
There Is a Need For Affordable Housing in Jacksonville
With affordable houses being in high demand in Jacksonville, there have been several different solutions to creating more home availability. There is a plan to construct an affordable housing development at the former Lakeforest Elementary School site, which would offer 160 units intended to be rented out to both lower income families and some units set at the current rental market rate. Jacksonville also recently has seen its first “tiny” home community that has 50 available smaller homes for rent. Additionally, there are several residential projects in the works to bring new homes to neighborhoods all over the city, including downtown, San Marco, the North and Southside, etc.
If you are looking into buying or selling a home in Jacksonville, Florida, and want to better understand the current housing market, contact North Star Mortgage, Inc. today for a consultation.