Jacksonville market provides attractive opportunities for multifamily investors
Jacksonville Multifamily Investment
Much like the other major cities in the state, Northeast Florida has recently been benefiting from an influx of migration and capital. These trends have contributed to strong investment sales activity within Jacksonville’s multifamily market. Although the first quarter of the year saw lower activity than previous quarters, this was expected as large firms traditionally begin the year by recalibrating their investment strategies. Many multifamily investors are also proceeding with more restraint than they were in 2021 as we await more details on potential interest rate increases. Still, the Q1-22 saw higher investment sales volume than the first quarter of 2021, with Class A properties totaling $94 million, Class B totaling $88 million and Class C following at $70 million.
Jacksonville Multifamily Rent Growth
Rental demand and increasing costs have led to significant increases in Jacksonville’s multifamily rental rates over the last year, however rents remain below the national average. Per square foot rents in Q1-22 average $1.68 for Class A, $1.68 for and $1.27 for Class C.
Jacksonville Multifamily Market Outlook
Jacksonville is the largest metro area in Florida by land volume and home to over 1.3 million people. Although sale prices and rental rates are on the rise, we still believe that multifamily projects will be met with high absorption rates. Interest rate hikes throughout the year will likely continue to moderate single-family home starts, helping maintain an elevated demand for apartments. We also expect cash flow projections for multifamily projects to increase over the next 24 months. Investors looking for high-yield, high-cash-flow investments will continue to find such opportunities in Jacksonville.
View the full Q1-22 Jacksonville Multifamily Report below: