Here are some apartment facts as of June that define the Jacksonville market, comprising Clay, Duval and St. Johns counties:
• There are 81,986 units.
• More than 8,000 units are proposed or under construction.
• Occupancy is 96.5%.
• The average monthly rent is $1,100, or $1.13 average rent per square foot.
• Two-bedroom units account for highest percentage of apartments.
• Class B units — those up to 20 years old with fewer amenities — make up the highest percentage of units.
• Apartment demand in metropolitan Jacksonville strengthened to the highest level in 10 years.
Real Data, an apartment market research firm, reported those statistics.
Real Data representative Kelly Reddecliff said Jacksonville area rental rates rose 3.77% over the previous year from $1,060, growth is expected to remain strong and the overall vacancy rate is anticipated to remain below 5% in 2019.
Real Data said that with continued job growth in the regional economy, the demand for apartments is expected to remain strong.
The report shows that 5,243 apartment units are under construction and another 3,008 units are proposed, representing a 10% increase from today.
The largest share of units under construction — 45% — is in the Baymeadows and Southeast submarkets.
There are 1,310 units under construction in the Baymeadows submarket, from Butler Boulevard south to Baymeadows and from Interstate 95 to the Intracoastal Waterway.
There are 1,025 units under construction in the Southeast submarket, defined as Atlantic Boulevard south to Butler Boulevard and from Southside Boulevard to the Intracoastal Waterway.
Real Data said the new units could lead to occupancy dropping slightly to 96.4% over the next 12 months and average 95% over the next five years, based on trends and anticipated economic and employment growth.
Among submarkets, vacancy is the highest — at 8.2% — in the St. Augustine submarket south of County Road 210, and the lowest — 2% — in the Beaches submarket, comprising Atlantic Beach, Jacksonville Beach, Neptune Beach and Ponte Vedra Beach.
Average rental rates
Average rental rates are the highest, averaging $1,293, or $1.42 per square foot, in the Central submarket. That market is the Downtown Northbank and Springfield areas, bounded by the St. Johns River to the south and east, the Trout River to the north and Interstate 95 to the west.
The lowest average rent is in west Duval County, at $914.
Average rents are $963 for one-bedroom units; $1,156 for two-bedroom units; and $1,302 for three-bedroom units.
Apartment stock
Class B units make up the majority, 57%, of the area’s apartment stock. Class B properties have midrange rents, were constructed in the past 20 years and include new affordable and student properties, have dated exteriors, require some deferred maintenance, and have older and fewer amenities than the high-end product.
Class C units make up 25%.
Those communities are older, constructed within the past 30 years, with the lowest rents, have dated exteriors and amenities and require more maintenance and improvements.
Class A units make up 18% of the market.
Class A facilities are the newest developments with the highest rents, constructed within the past 10 years or have undergone significant renovation, are well maintained and landscaped, used high-quality materials and construction, and have high-end exteriors and the latest amenities.
