Jacksonville, Florida, offers real estate investors a massive opportunity. The city experienced an influx of new residents who are drawn to the area’s resurgent economy, and the housing industry remains overwhelmed by the increased demand.
That imbalance means investors who enter the Jacksonville market can now benefit from the strong demand for affordable housing. Rental homes provide consistent income for investors and are a great way to diversify investments outside of traditional stocks and bonds. Unfortunately, home prices have climbed sharply in many of the markets that traditionally offered real estate investing success. This makes it difficult for investors to maximize their return on investment. Luckily, markets like Jacksonville are filling the void left by more expensive cities.
A market on the rise
Florida’s population has exploded in recent years, and a strong job market is one of the key reasons for the population boom. According to a survey conducted by Chief Executive Magazine, Florida is the second-best state for business. The survey examined workforce quality alongside taxation and regulatory issues, and only Texas presented a more compelling business climate.
Companies have taken note of these benefits, and Florida added 292,700 jobs in the 12 months leading up to March 2015, according to the Bureau of Labor Statistics. Jacksonville has been a key player in that expansion, and the city’s population grew 2.5 percent in the past five years, the Census Bureau said. That’s put increased pressure on the housing market, but prices have yet to skyrocket as they have in other locations in Texas and elsewhere. This contributes to the city’s status as a strong investment option, though prices could rise rapidly in the months to come.
Successful investing is rooted in long-term returns
Strong single-family rental markets allow investors to buy and hold properties. Long-term real estate investing helps insulate investors from stock market fluctuations that can decimate less diversified portfolios. Of course, the potential long-term benefits of a SFR investment can be mitigated by a high initial home price.
This makes Jacksonville an ideal place for investors who want to enter the single-family real estate market. While there is substantial demand for homes, prices in Jacksonville have yet to experience the massive escalation that makes it difficult to profit in some markets.
That said, the housing inventory in Jacksonville is tightening. Market research firm Metrostudy released a report on the Jacksonville market that found inventory dipped 6.1 percent in the past year. Metrostudy anticipates slow price growth in the immediate future, but that could escalate as the market becomes more saturated. Investors who want to maximize their return on investment should act quickly to pick up properties while prices remain relatively low.
A strong future ahead
Jacksonville is likely to maintain its current growth into the future, and is poised to outperform the U.S. economy overall. Sperling’s Best Places, an aggregator of demographic data, predicted job availability to increase by more than 42 percent in the Jacksonville area during the next 10 years. Savvy investors can profit from this growth by establishing themselves in the SFR investment market early.
Investors who want a simply entry to the real estate investment market should register on HomeUnion®’s site to view hundreds of pre-vetted properties in the nation’s top SFR investing markets, including Jacksonville. HomeUnion® offers financing from an in-house lender and provides property and tenant management. With HomeUnion®, investing in real estate is as simple as investing in stocks or bonds. Contact HomeUnion® today to start benefiting from the diversification real estate provides.