24 Hour Local Real Estate News

Jacksonville Multifamily Set for Rebound in Occupancy and Rents in 2025

As high supply has negatively impacted many landlords in the Sunbelt, Jacksonville is set for a rebound in multifamily in 2025, a new report from MMG finds.

In 2024 alone, there were some significant improvements. Most notably, starts plummeted by 61 percent year-over-year to just 2,215 units. Annual units under construction fell 24 percent below the historical yearly average to 4,628.

Also, multifamily demand appears to be strong in Jacksonville. The nearly 7,000 units absorbed in 2024 was a "record-breaking" number, according to MMG.

While CoStar is calling for just 2,900 absorption levels in 2025, occupancy and rents are expected to be higher in the metro.

“After two years of intense competition among newly delivered properties, we’re seeing signs of stabilization,” Matt Ledom, senior managing director at MMG, said in a statement.

“Lower- and mid-tier properties have already started to experience rent increases, and upper-tier properties are likely to follow as the construction pipeline contracts.”

Particularly, MMG lists Central Jacksonville as an area that's poised for three percent rent growth in 2025. Currently, the submarket's rents are 20 percent below Jacksonville's average. The Southside and Beaches areas are also set for a three percent increase this year. Additionally, MMG forecasts that Downtown Jacksonville will see above-average occupancy rates.

Overall, the multifamily real estate firm feels that the sector in Jacksonville is set for "stabilization" in 2025 and that supply and demand should remain balanced for the "coming years."

“Jacksonville remains an attractive investment market,” Ledom said.

“Its affordability, rapid in-migration, and improving rent growth outlook offer compelling opportunities for multifamily investors.”

In the country, Jacksonville is the fastest-growing metro, according to the U.S. Census Bureau and ESRI.

Reprinted with permission from the Monday, 27 January 2025 05:49:17 EST online edition of GlobeSt © 2025 ALM Media Properties, LLC. All rights reserved. Further duplication without permission is prohibited, contact 877-256-2472 or reprints@alm.com.