During Q4’21, the overall price averaged $171K per unit, a 17% increase year-over-year, while cap rates continue to compress another basis point. As the MSA remains one of the top rent growth markets in the country, demand from investors continues to intensify.
Effective rents, now averaging $1,421 for the Jacksonville MSA, increased 22.8% year-over-year during Q4’21, while vacancy levels decreased 1.2% during the same period. As demand continues to outpace supply, rental rates will continue to rise as vacancy levels reach new historic lows.
“The strong increase in the labor force has contributed to the uptick in population growth and household formation, furthering the rate at which demand outpaces supply. This has in turn led to increased rental rates and larger than expected returns for investors.”
By : John Rutherford
Senior Vice President, Multifamily Investment Sales