Market Spotlight: Jacksonville’s Urban Core

The last affordable city in Florida, with one of the nation’s strongest job markets: It’s a recipe that was bound to attract investors to Jacksonville, FL.

Jacksonville’s sheer size makes it a nuanced market for investors, but Backflip’s members have honed in on the city’s Urban Core. Backflip has provided 13 real estate investment loans in the area, adding $1,076,000 (including one loss) in property value. We thought we’d look into why:

An Old Center

Sprawling Jacksonville is the largest city by landmass in the continental US. But the 5 by 6 miles known as the Urban Core is a city within a city. Here is the Old Jacksonville of dense and gridded streets, bustling with cars, bikes and pedestrians, historic homes and small businesses —starkly different from the greater metropolis of arterial roads, strip malls, and office parks.

The Urban Core’s steady revitalization has drawn developers and investors alike. The Core offers a range of residential options, from historic homes to modern condos, many of which need upgrading. As a point of proof: Backflip borrowers.

What Ignited the Urban Core?

Infrastructure Improvements: The city’s commitment to enhancing infrastructure, transportation and amenities in the Urban Core, drives…

Economic Growth: The Urban Core’s business expansion is creating a strong demand for housing and commercial space, leading to…

Community Revitalization: Creatives, transplants, and young families are contributing to the revitalization of neighborhoods, meaning…

Rising Property Values: Growth and demand keep property values on the rise, benefiting investors.

Jacksonville by the Numbers

Population Growth: Jacksonville’s population has been steadily increasing, driven by job opportunities, affordability, and quality of life. That means an increased demand for housing. According to the U.S. Census Bureau, Jacksonville’s population increased by 1.7% between 2020 and 2022.

Demographics: As of 2020, 35.5% of Jacksonville’s population was under the age of 34. This is high compared to other major cities, and is linked to more economic activity and a strong demand for housing.

Housing Market: The median home value in Jacksonville was $228,500 in 2022. This is lower than the national average of $328,100, making it attractive to both first-time homebuyers and investors.

Rental Market: In 2022, 35% of housing units in Jacksonville were renter-occupied. This indicates a strong rental market. Job growth, affordability, and demographics suggest that’s not going away. 

Economic Indicators: Jacksonville’s unemployment rate was 4.4% in 2022, which is lower than the national average. The city’s GDP grew by 2.5% in 2022, indicating a strong economy. 

Tips for Out of State Investors

“We came in 2023 knowing that there was definite changes in this area,” says one Backflipper with multiple properties in Brookhaven. “It’s very interesting, how much it’s grown, with new developments and facilities coming up all the time.”

“Check out Springfield, Brookhaven, Murray Hill, San Marco,” Backflip Account Executive Deanna Reich tells out of state investors, adding: “If you’re out of town, put cameras on the property to keep track of people going in and out, and to keep track of the project being worked on.”

Means, Motive, Opportunity

When you have motive, opportunity and means, you have action. JAX has it. Motive: As the Urban Core continues to evolve and mature, property values should continue to appreciate. Opportunity: The majority of Urban Core homes are older than 40 years, and in need of renovation. Means: Backflip is actively seeking to provide loans in the area. If you have a deal you are looking to fund, we hope you’ll contact us.

Join us at a Backflip Jacksonville meetup event for real estate investors.

Backflip periodically investigates certain zip codes popular with its members. This isn’t investing advice. Before investing in any market, do conduct your own in-depth research.