Employment, Affordability Drive Demand in Jacksonville
- Jul 06, 2018
Multifamily fundamentals continue to be strong in Jacksonville, where employment, wage and population growth underpin a steady demand for apartments.
With 3,900 jobs added, trade, transportation and utilities led employment gains in Jacksonville. This trend will likely continue with the deepening of Jacksonville Harbor, which will enable the transit of larger cargo ships coming through the Suez and Panama canals. Moreover, the construction sector is expanding, spurred by large mixed-use projects, including The District, which will bring residential units, hotel, retail and office space to downtown Jacksonville, along with a 125-slip marina and a four-acre public park. Office-using employment gains were also significant over the past several quarters, bolstering office demand and pushing up occupancy.
The metro’s healthy economic climate and ongoing multifamily rent growth drew many investors in 2017, with the sales volume peaking at nearly $1.4 billion. Construction activity was also strong, and this is set to continue this year, as more than 2,300 units are expected to come online in 2018, which would mark a new post-recession high. However, absorption is expected to keep up with the new supply, leading to a robust rent growth of 4.1 percent for the year.