Property in Jacksonville in Florida has been ranked by JWD Group as the best in the US for investment this year. The city’s combination of advantageous price-to-rent ratios, a strong economy and good potential for property appreciation takes it to the top of the list for best investments.
Florida’s largest city has always been favoured by national and international companies for corporate relocations, but like the rest of the state, Jacksonville was hard hit by the recession. However, the city has bounced back and is currently one of the state’s employment and economic hotspots. 16,800 jobs were created last year and unemployment stands at 5.6 per cent.
Not only is the city’s economy on the rise, Jacksonville also offers the magic buy-to-let formula – low property prices and high rental rates. Median prices for properties in Jacksonville reached US$160,000 in March while rental rates rose nearly 13 per cent in the year to January (one of the highest increases in the country).
The property market in the city is currently experiencing one of its busiest periods ever. According to the Wall Street Journal, there’s real optimism in the air and “Jacksonville home builders and real estate agents report the most vibrant period for home sales since 2006”.
Jacksonville property figures for March certainly make impressive reading. Northeast Florida Association of Realtors statistics show that completed sales rose by 18 per cent year-on-year with pending sales up even higher (30 per cent). In West Jacksonville, figures were particularly spectacular. Closed sales in this part of the city grew by 61.2 per cent in the year to March.
Prices are also on the up with median prices increasing by 27 per cent since 2011. West Jacksonville ranks again as a star performer in this statistic with a 15 per cent rise in median prices in the year to January. During the first three months of this year alone, prices for property in this district of Jacksonville went up by 16. 3 per cent.
In terms of inventory, property supply in the city is starting to dry up. Inventory levels in March dropped to 4.5 months, their lowest level since 2006. In some parts of Jacksonville, supply is even lower – just 3.8 months in North Jacksonville and barely 2.8 months in East Jacksonville.
The increasing employment opportunities in the city are putting pressure on the rental market where prices are rising offering excellent returns on buy-to-let investment. Property appreciation continues to rise also and the big interest in Jacksonville property suggests that now is definitely the time to get involved in the best property investment in the US. No wonder Jacksonville ticks all the right property investment boxes this year for JWD Group.
Sources: NEFAR, Wall Street Journal
