The outlook for Jacksonville’s rental market remains bright as payroll growth outpaces the national average and boasts among the fastest-growing populations. Rent growth is forecast to accelerate this year as vacancy remains near 5 percent, a level often considered full occupancy.
Many of the rentals are tenanted with military personnel; Naval Air Station Jacksonville and Naval Station Mayport support over 34,000 active personnel and civilians. Over the next five years, Naval Station Mayport will bring eight new combat ships and thousands of jobs. Consequently, rents are expected to climb the most in the Atlantic Beach region where the naval station is located.
Meanwhile, a number of financial firms including Ernst and Young, Fidelity, FIS and Citi will also generate hundreds of payroll additions throughout the metro over the next few years. Additionally, as the state welcomed a record number of tourists last year, Jacksonville will stake a claim to many travelers, boosting the tourism and hospitality industry. Since many of the workers in the tourism sector gravitate towards rentals, this industry will fuel renter demand.
Payrolls are forecast to grow 3.2 percent this year as employers add 21,000 jobs. Last year, 22,900 positions were created in the metro.
Forecast for Jacksonville Market
From vacancy trends to projected home prices, find out what is anticipated for Jacksonville’s market by downloading the report. This market report evaluates multiple sectors of the economy that affect risk-and-reward for single-family real estate investors.