Rents are expected to rise event as more units come on the market.
Apartment vacancy is down, average rents are up and the pipeline continues flowing for construction of multifamily units in the Jacksonville area as of the third quarter of 2021.
About 1,300 units were added during the July-September quarter.
“This market is positioned for success as it is supported by the largest population of any city in the state,” reported Franklin Street in its Q3-21 Jacksonville Multifamily Report.
Franklin Street said vacancy rates continued to decrease quarter over quarter in Jacksonville.
“Strong market fundamentals were displayed as approximately 1,300 units were delivered and vacancy rates still declined,” Franklin Street reported.
Franklin Street said Duval County represented most of the area investment sales volume.
It said institutional investors were the most active during the quarter, representing more than half of the sales. Private buyers, users and private equity investors constituted the rest.
Class A and Class B projects are selling at record levels.
Franklin Street said its research found that Class A properties sold for more than $249,000 a unit on average, with Class B at $168,000 and Class C at $79,000.
Most per-unit prices were up.
Sales are expected to continue.
“Investors continue the influx of capital into the area.”