Investing money into rental property has long been a popular way for real estate investors to build wealth and ensure future finances. As a landlord, having a rental home business provides you with a stable passive income through your short-term guests or long-term tenants.
Well, for the most part, this is true if you invest in the right location.
You might always hear that location is the first thing you must consider when looking for an investment property, and if you're still looking for where to put your money next time, Jacksonville, Florida, is a great place to consider.
You can find Jacksonville in Florida's northeastern section. It is the biggest city with the largest population in the state. The city has a broad cultural scene, a rich history, and a stunning aquatic paradise. Its varied terrain, spanning over 840 square miles, includes lush woods and immaculate beaches.
Due to its huge land area and the diversity of landscapes in the city, Jacksonville became popular among families, young professionals, and retirees. This, in turn, leads to the demand for a wide range of rental homes that can cater to each group's preferences.
If you're an investor looking to expand your rental investment or an existing landlord looking for new ideas for advertising your rental homes in the market, here are the reasons to invest in Jacksonville real estate.
Home Prices Appreciation
As an investor, you know that the possibility of capital gains highly depends on the rate of home price increase. If you're looking for a city with great appreciation potential, Jacksonville's real estate market is a perfect place to start.
Factors such as the city's general attractiveness, economic progress, and population increase drive the appreciation of its rental properties. Home values in most parts of Jacksonville have steadily increased throughout the years, and better yet, specific communities have enjoyed quicker appreciation rates.
An Optimal Place for Business
A business-friendly setting can make your real estate investment much more likely to pay off. Thankfully, Jacksonville is known for having a good business environment. This brings in companies that create jobs in the city, attracting more tenants for your rental homes and boosting your lease renewals.
This makes downtown Jacksonville an awesome spot to expand your real estate portfolio.
Fastest-Developing City in Florida
In terms of home price growth over the last ten years, Florida ranks first among the states in the U.S., and Duval County leads the state.
Jacksonville is the county seat of Duval and currently has a mass of pipeline projects that include residential buildings, retail space, and restaurants. Aside from that, the Jacksonville metropolitan area is home to well-known businesses like:
- CSX Transportation
- Dun & Bradstreet of New Jersey (Headquarters)
- Firehouse Subs
- Stein Mart
All these big companies flocking into the city create strong employment opportunities and give Jacksonville an unemployment rate of 4%, which is 2% below the national average. All these developments make the city the 25th fastest-growing city in the country.
Secure Return on Investment Properties
One of the most important things you consider as a property owner is the potential positive cash flow from your rental business.
Jacksonville is the best place to generate rental income because of the city's low home prices and steady desire for rented homes. Jacksonville's median home prices are 30% below the nation's average, securing a positive cash flow.
Moreover, Jacksonville's turnkey rental properties also offer you the chance to generate an immediate rental income, making them even more appealing to buyers. Just ensure you know what to do after buying your first rental property.
Lucrative Rental Market Outlook
Looking at the rise in population and job opportunities, it's clear that investing in real estate in the Jacksonville area can pay off. However, aside from this, the city's greater potential return relies on how fast your property value can appreciate from its real estate markets.
According to Jacksonville Business Journal's comparison of property values, Jacksonville's home prices have gone up an average of 4.6% per year, which is much higher than that of cities in other states. Based on this study, you can earn $100,000 more at this pace if you choose the right market.
High Demand in Single-family Homes
If you are a property owner of a single-family home, you got the jackpot since this type of home is in high demand these days in Jacksonville. Most Americans prefer to live and rent in a single-family home most of the time, and the city is running low in supply for this type of home.
But, there is good news for investors who want to diversify their investment portfolio in the city. Although there is a high demand for single-family homes in Jacksonville, the median home prices are still considerably below the national average.
Strong Population Growth
A real estate market's success is heavily influenced by population growth. Jacksonville is a great place for real estate owners because its population is growing quickly, and several people are moving into the city to find new job opportunities.
More people in the city means a higher demand for rental homes, which is great for landlords and property owners. With a growth rate of 1.15%, Jacksonville currently has 997,164 population for 2024. This marks a growth rate of 4.76% from its last census in 2020.
Diverse Attractions and Recreational Activities
Jacksonville offers numerous attractions catering to various interests. These tourist hotspots are great things to include when marketing your rental home business. Since Jacksonville is also known for its green spaces, residents can enjoy various outdoor activities, from nature reserves to parks surrounding the city. Biking, boating, kayaking, and fishing are just a few of the many leisure options offered by the city.
You can also enjoy other infrastructures, amenities, and desirable factors around it, such as:
- Dog parks
- Private schools
- Good public school system
- Pet-Friendly Neighborhoods
- Recreation Centers
Tap into Jacksonville’s Profitable Rental Market!
Jacksonville, FL's rental market is an excellent chance for property owners, landlords, and investors who want to generate wealth and see their money grow over time.
The city's strong economy, growing population, and high demand for rental homes make it a great place to buy more properties and build your portfolio. You can take advantage of these good market conditions by partnering with property management experts like Round Table Property Management.
We will create a steady cash flow in your rental business through our wide range of services, from marketing to tenant screening, maintenance, and eviction processes. We even offer an Owner and Tenant Portal to streamline your business, giving you full control and monitoring of your rental property 24/7.
Let us help you build up your wealth over time and make your investments profitable to secure your future. Send us a message now!
