- Jacksonville’s multifamily market saw a 61% drop in new starts in 2024, signaling a supply slowdown that could benefit landlords in the future.
- Demand remains strong, with nearly 7K units absorbed in 2024, setting a record for the metro.
- In 2025, occupancy and rents are expected to rise, particularly in places like Central Jacksonville, Southside, and the Beaches, where rents are forecast to rise 3%.
- As the construction pipeline shrinks, stabilizing supply and demand is expected, making Jacksonville a more attractive market for investors in the coming years.
After seeing a surge in new multifamily construction that pressured landlords in recent years, Jacksonville is poised for a major recovery in 2025, per GlobeSt.
According to a new report by MMG, the combination of falling supply and steady demand will lead to better occupancy rates and rising rents across the metro area.
Demand Holding Strong
Last year was pivotal for Jacksonville’s multifamily market. New construction starts dropped by a staggering 61% from the previous year, with only 2.21K new units coming online. The overall number of units under construction fell 24% below the historical average, bringing the total to 4.63K units.
This supply slowdown is expected to relieve landlords, many of whom have faced tough competition from new developments in the last few years. With fewer new units hitting the market, vacancy rates will likely improve, and rents are expected to rise as multifamily demand remains strong.
According to MMG, in 2024, Jacksonville set a record with nearly 7K units absorbed. While CoStar forecasts absorption will drop to 2.9K units in 2025, strong demand for regional multifamily suggests occupancy rates and rental prices will keep climbing.
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Signs of Stability
After two years of intense competition among newly built properties, experts see signs of stabilization.
Matt Ledom, senior managing director at MMG, noted that lower- and mid-tier properties in the city have already begun seeing rent hikes. Upper-tier properties, which have been slower to adjust, are expected to follow suit as the supply pipeline contracts.
“After two years of intense competition among newly delivered properties, we’re seeing signs of stabilization,” said Ledom. “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 in Central Jacksonville, where rents are currently 20% below the metro’s average, MMG projects a 3% increase in rents in 2025. The Southside and Beaches submarkets are also expected to see similar growth.
A Brighter Future
Overall, the outlook for Jacksonville’s multifamily market in 2025 is positive. MMG predicts supply and demand will remain balanced in the coming years, supporting further stabilization in the sector.
The city’s rapid population growth and strong in-migration trends make it an appealing market for multifamily investors looking for opportunities in the Sunbelt.
“Jacksonville remains an attractive investment market,” said Ledom. “Its affordability, rapid in-migration, and improving rent growth outlook offer compelling opportunities for multifamily investors.”
