For investors in Jacksonville, how saturated is the JAX rental market?
I have (4) MD properties and have been monitoring JAX and surrounding areas for a few years for investment properties first with a longer term goal as a retirement destination. At a glance, there seems to be a large amount of unoccupied rentals on the market. One data point is the relationship of Open Rentals vs. Population by a few Zips compared to my MD Zips. Is JAX too saturated?
| State | Zip Code | Population | Open Rentals (Zillow) | Ratio |
| FL | 32218 | 53,473 | 177 | 0.33% |
| FL | 32097 | 15,616 | 46 | 0.29% |
| FL | 32258 | 26,759 | 67 | 0.25% |
| FL | 32244 | 57,369 | 142 | 0.25% |
| FL | 32221 | 27,918 | 61 | 0.22% |
| MD | 21234 | 69,752 | 32 | 0.05% |
| MD | 21237 | 30,059 | 12 | 0.04% |
| MD | 21014 | 36047 | 7 | 0.02% |
The rental market has slowed down here and I've noticed rents have dropped at least over the winter season. I think they just built way too many "luxury" apartment complexes over the last few years.
Hi Craig,
I live north of Jacksonville and have also been looking into purchasing another rental near Jacksonville. I look at facebook groups sometimes to see the needs for housing. I definitely think people still need housing, but as Minna said they built way too many "luxury" apartments and houses in an area where the income is not the highest.
Hi Mina and Jasmine - thank you for your insight. I've been focused on single family and didn't have a view into the lux apartment expansions, but it all ultimately adds capacity.
Hi Craig,
I wouldn’t say it’s saturated. It depends on the area you invest in. I get several calls inquiring about rental properties however the criteria for some of those ppl to qualify holds them back. In addition, those ppl don’t qualify to purchase a home at the time.
I am an investor that buys 20-30 rentals a year in Jacksonville. I stay out of certain zip codes but overall I have them all rented. The only ones not rented are being renovated. If you offer a fairly remodeled home they will rent. If it hasn’t been updated since the 70’s it will take longer. Most of my houses rent within a couple weeks at fair market rent prices.
Thank you Marcella and Jeffrey. We're coming down to JAX in a few weeks to see some areas!
I have notice year over year that rent rate drop between November and April in Flagler County/ Palm Coast Florida. I then see an uptick again when school is out. If that does not happen this summer then I would agree demand over all has dropped. Most people do not want to move their kids during the school year so that lowers the demand for units. Time will tell if the trend is seasonal again or more permanent.
Quote from @Craig Bauer:
I have (4) MD properties and have been monitoring JAX and surrounding areas for a few years for investment properties first with a longer term goal as a retirement destination. At a glance, there seems to be a large amount of unoccupied rentals on the market. One data point is the relationship of Open Rentals vs. Population by a few Zips compared to my MD Zips. Is JAX too saturated?
State Zip Code Population Open Rentals (Zillow) Ratio FL 32218 53,473 177 0.33% FL 32097 15,616 46 0.29% FL 32258 26,759 67 0.25% FL 32244 57,369 142 0.25% FL 32221 27,918 61 0.22% MD 21234 69,752 32 0.05% MD 21237 30,059 12 0.04% MD 21014 36047 7 0.02%
The third party websites do not always reflect the exact status of available units and often the prices can be way off. Not sure about saturation... certain price points have scarce or no inventory.
#4 Market Trends & Data Contributor
Quote from @Craig Bauer:
I have (4) MD properties and have been monitoring JAX and surrounding areas for a few years for investment properties first with a longer term goal as a retirement destination. At a glance, there seems to be a large amount of unoccupied rentals on the market. One data point is the relationship of Open Rentals vs. Population by a few Zips compared to my MD Zips. Is JAX too saturated?
State Zip Code Population Open Rentals (Zillow) Ratio FL 32218 53,473 177 0.33% FL 32097 15,616 46 0.29% FL 32258 26,759 67 0.25% FL 32244 57,369 142 0.25% FL 32221 27,918 61 0.22% MD 21234 69,752 32 0.05% MD 21237 30,059 12 0.04% MD 21014 36047 7 0.02%
This is very smart matrix how to forecast the rental demand !
Looks about right when you research the areas of what's in those zip codes. Location Location Location and those are not locations that would represent our tenant base or at least most desirable areas to live. I am not invested in North Jax - but look into Yulee, Fl. That's a hot area that is growing. Near airport, commutable to city and close to Fernandina Beach. If you need a more insight or a realtor for that area lmk... I do have a license however, I only use it for my own deals but happy to connect you with an Investor who is also a realtor in that area.
Thanks Kimberly. We were there last month and spent some time in that area.