It’s lower than Miami, Orlando, and Tampa.
Jacksonville, FL, is understood for its 80,000 acres of parks, miles of seashores, and scrumptious delicacies. Along with being a coastal respite, Jacksonville can be residence to a reasonably aggressive actual property market that’s seen average development lately.
For a lot of, shopping for a house in Jacksonville is a dream come true, however it’s additionally necessary to know the way it will affect your funds. From down funds to month-to-month mortgage funds, there’s so much to grasp earlier than shopping for your first residence
So whether or not you already dwell in Florida’s capital or need to relocate to the world, right here’s a breakdown of the earnings you’ll must buy your first residence in Jacksonville.
Try our unique report for an in depth nationwide evaluation.
How a lot earnings do you must purchase a starter residence in Jacksonville?
The median sale worth of a starter residence in Jacksonville is $239,500. With a purpose to afford this, first-time homebuyers in Jacksonville ought to make $77,040 per 12 months, up 9.9% from 2023. Additionally, the median earnings in Jacksonville is $83,778, that means the everyday resident can afford a starter residence.
As anticipated, starter properties in Jacksonville are extra reasonably priced than the typical residence (all worth brackets mixed; see methodology for particulars). With a purpose to afford any median-priced residence within the space, you’ll must make $99,549 (as of October 2023).
Nationwide, you want an earnings of $75,849 to afford a typical starter residence, which prices a mean of $240,000. The common U.S. family earns an estimated $84,072.
First-time homebuyers’ information to the Jacksonville housing market
Jacksonville’s housing market has skilled regular development following the pandemic. Whereas not as widespread of a migration vacation spot as neighbors Miami and Tampa, the world has nonetheless seen an influx of homebuyers from across the nation. The town’s inhabitants rose by 5% from 2019 to 2021 and is nearing the 1 million mark.
This development has lifted home costs by 29% over the past three years, from $225,000 in January 2021 to $315,000 right this moment.
Nonetheless, condos within the space have truly dropped in worth just lately as they get better from a surge in reputation that priced out many consumers. Rising insurance coverage and HOA prices ensuing from excessive local weather dangers additionally pushed costs down.
For those who’re seeking to transfer to the Florida capital, the world is residence to many facilities and points of interest all through its neighborhoods, just like the Jacksonville Zoo and Gardens, Riverside Arts Market, and Kathryn Abbey Hanna Park. Some widespread neighborhoods in Jacksonville embody Arlington, Baymeadows, and Mandarin.
What does a typical down fee appear like for a starter residence in Jacksonville?
Listed here are some widespread down fee quantities for a typical $239,500 starter residence in Jacksonville:
Down fee share | Down fee quantity |
3% down fee | $7,185 |
3.5% down fee | $8,383 |
5% down fee | $11,975 |
10% down fee | $23,950 |
15% down fee | $35,925 |
20% down fee | $47,900 |
Down funds can vary from 0% to 100% of the full home worth, relying in your price range, mortgage sort, and long-term priorities. Whereas specialists have traditionally really useful budgeting for a 20% down fee, the rising price of properties and continued sluggish wage will increase has led to a 15% down fee changing into extra widespread.
Some mortgage sorts permit for decrease down fee quantities. For instance, a Federal Housing Administration (FHA) mortgage requires simply 3.5% down, whereas the bottom doable down fee for a standard mortgage is 3%. These quantities usually rely in your credit score scores, so consumers with larger credit score scores could qualify for decrease down funds.
What’s the typical mortgage fee for a starter residence in Jacksonville?
The everyday month-to-month mortgage fee for a starter residence in Jacksonville is $1,926. This assumes you place 3.5% down and have round a 7% rate of interest.
If this fee sounds too excessive, you would take into account renting an residence in Jacksonville. The common hire worth is $1,683, presumably making it a greater choice whilst you save for a down fee on a home. You may as well use an affordability calculator to see what you may afford primarily based in your earnings and down fee.
What do you have to do subsequent?
For those who’re out there on your first residence in Jacksonville, it’s necessary to grasp how a lot home you may afford. Take your annual earnings, credit score rating, the present mortgage charges, and native market tendencies to decide that works greatest for you.
From there, a Jacksonville agent may help you navigate your entire residence shopping for course of and supply invaluable native experience. To be taught extra about easy methods to purchase a house, try Redfin’s First-Time Homebuyer’s Information.
Methodology
Redfin divides all U.S. properties into 5 buckets primarily based on Redfin Estimates of properties’ market values. There are three equal-sized tiers, in addition to tiers for the underside 5% and high 5% of the market. Redfin defines “starter properties” as properties whose sale worth fell into the Fifth-Thirty fifth percentile of the Redfin Estimate tier.
We calculated the annual earnings wanted to afford a starter residence by assuming a purchaser spends not more than 30% of their earnings on housing funds. Housing funds are calculated assuming the customer made a 3.5% down fee and in addition take a month’s median sale worth and common mortgage-interest fee under consideration.
The nationwide earnings information is adjusted for inflation utilizing the Client Worth Index. 2024 earnings is estimated primarily based on projections from the U.S. Census Bureau’s (ACS) 2022 median family earnings utilizing the 12-month shifting common nominal wage development fee. The speed was compiled from the Present Inhabitants Survey and reported by the Federal Reserve Financial institution of Atlanta.
We assume housing funds embody the mortgage principal, curiosity, property taxes, owners insurance coverage, and mortgage insurance coverage (when relevant).
All information sourced February 2024 except in any other case acknowledged.