The Jacksonville economy and real estate markets have strengthened significantly during the third quarter of 2020. Jacksonville’s unemployment rate began the quarter at 8.0% but after strong job growth, ended the third quarter at 5.1%. Our market continues to outperform the broader state averages, which increased to 7.6% in September. This outperformance can in part be attributed to a diversified employment base and less reliance on the tourism compared with other parts of the state.
In addition to positive strides in employment, Jacksonville is also benefitting from significant in-migration from across the country. According to a LinkedIn report, Jacksonville was the #1 ranked city in the country for net arrivals of population during the pandemic from April-August. The growth in net arrivals was up 10.7% from the same period in 2019.
This influx of population can be seen throughout the city with new homes being constructed at a pace not seen in over a decade, however, this time with much less speculative building. Homebuilder confidence is at an all-time record high and Jacksonville is a direct beneficiary. This increased activity is also occurring in the commercial markets, with transaction volume up 285% compared to the second quarter of 2020. In addition, we continue to see strong investor demand and expect to have a strong fourth quarter.
Although uncertainty still exists with the pandemic and a polarizing election cycle, we have been encouraged by the economic recovery in Jacksonville and we believe these positive trends will continue.
Featured in this quarter’s Jacksonville Market report:
- Read exclusive insights from NAI Hallmark brokers on Jacksonville’s biggest sectors.
- Learn about the major leases and sales closed over the last quarter.
- See tables and graphs of historical asking rates, vacancy rates, and absorption.
- Discover what big news is happening in the coming months.