Shifting Towards a Buyer’s Market
Jacksonville’s housing market is becoming more stable as home prices decline and inventory increases.
Since peaking in 2022, prices have dropped by about 3.4%, with the average home now selling for $287,000, according to Zillow. This shift makes homeownership more affordable, said Paul Vie, Lending Market Leader at Bank of America, in an interview with the Business Journal.
“If this trend continues—especially with many builders adding more supply—it will help balance the market,” Vie explained. “We’re already seeing more homes being listed than we have in quite some time.”
This increase in affordability and available homes in Northeast Florida aligns with the national trend.
According to Redfin, the median U.S. home-sale price increased just 3.7% year-over-year for the four weeks ending Feb. 16, marking the smallest rise since September. Meanwhile, the average mortgage rate dropped to 6.87%, its lowest level this year.
Buyers now have more options, with the market offering five months of housing supply—up from 4.1 months a year ago and the highest since 2019. Additionally, homes are staying on the market longer and often selling for below the asking price, giving buyers more negotiating power.
While these conditions suggest a more buyer-friendly market, Vie emphasized that whether it’s a buyer’s or seller’s market depends on individual circumstances.
Compared to 2022, when sellers often received offers above their asking price, today’s buyers have a better opportunity to negotiate. However, the most important factor is whether the home is the right fit for the buyer.
“I always say, ‘Marry the house, date the rate,’” Vie noted. “If the home checks all the boxes—location, school district, commute—then that’s what truly matters. Whether it’s a buyer’s or seller’s market is a broader term, but ultimately, the right time to buy depends on the individual.”
Information from: https://www.bizjournals.com/jacksonville/news/2025/02/24/housing-market-homebuyers-favored.html
Rates and Affordability
Despite challenges like high interest rates, rising costs, and investor activity, Jacksonville’s homeownership rate saw slight growth in 2024.
A PropertyShark analysis of U.S. Census Bureau data found that homeownership nationwide remained steady at 65.4%, representing the percentage of housing units occupied by their owners. In Jacksonville, 57.9% of residents owned their homes in 2024—an increase of 1.2 percentage points from five years ago and 2.3 points over the past decade.
Jacksonville remains the most affordable major city in Florida, with an average home price of $287,628, according to Zillow. This lower price point has made homeownership more attainable for many, especially compared to Orlando and Tampa, where home values exceed $370,000.
Among Florida’s major metros, Jacksonville ranks higher in homeownership than Miami, Orlando, and Tampa but trails St. Petersburg and Port St. Lucie, which has the highest homeownership rate in the state.
Homeownership is also rising in areas experiencing strong population growth. In Port St. Lucie, nearly 85% of residents own their homes—a 4.8-point jump from 2019 and the highest rate among the 100 largest U.S. cities. Arizona has also seen an increase, with cities like Gilbert, Chandler, Scottsdale, and Mesa ranking among the top 10 for homeownership. Scottsdale, in particular, grew by 10 percentage points over the past decade.
By contrast, coastal cities tend to have lower ownership rates. Newark, New Jersey, has the lowest rate at 24.6%, followed by Jersey City (27.6%) and New York City (32.5%). Miami and Los Angeles also rank near the bottom, though Miami has seen notable increases in ownership and home equity over the past decade.
Investor activity has affected ownership in some communities, such as Cincinnati, where private equity firms had acquired a large number of single-family homes. However, local efforts—like the Port of Greater Cincinnati Development Authority purchasing 194 homes to resell to lower-income buyers—aim to restore ownership opportunities.
In general, homeownership has increased the most in affordable cities. Chandler, Arizona, and North Las Vegas saw the largest 10-year gains, while Fresno, California, led in five-year growth, followed by New Orleans and Detroit. These cities attracted new residents during the pandemic with lower costs of living and more accessible housing markets.
Information from: https://www.bizjournals.com/jacksonville/news/2025/02/27/homeownership-rates-by-city-jacksonville.html
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