Seasonal Slowdown In Full Swing
Following almost two years of unprecedented growth, the Jacksonville multifamily market began to cool down at the end of 2022, mirroring nationwide trends. On a trailing three-month basis through February, rents contracted 0.2%, to an average of $1,526, while the U.S. figure inched down 10 basis points, to $1,702. The occupancy rate in stabilized properties also slipped from its 96.3% peak in July 2021, to 93.9% in February, marking the lowest rate among large Florida metros.
Jacksonville unemployment was 2.5% as of January, 10 basis points below the state figure. In 2022, the metro added 43,400 jobs, with professional and business services accounting for a third of them. Due to several large projects under construction or planned, the job market has good prospects, with developers particularly busy along the waterfront area, which is getting a significant overhaul. Preston Hollow Capital is expected to begin construction this year on its $535 million RiversEdge project on a 30-acre Southbank tract of riverfront land. The Northbank area is also on the cusp of a significant makeover, as SouthEast Development Group and its partners moved forward with plans to remodel a 25-acre city-owned parcel.
As in most parts of the country, both new development and investment activity in Jacksonville have been on a downward trend since the end of 2022, not only because of the seasonal slowdown but also as a result of tightening lending standards.
Read the full Matrix Multifamily Jacksonville Report-April 2023