January 2023 Jacksonville Rental Market Data

Feb. 10, 2023

The first data for 2023 is out! A few interesting takeaways related to rental prices as well as some signs the market is plateauing. Are these trends or are these changes simply little false glimmers of hope that we have hit the bottom? Time will tell. Let's dive into the numbers!

Active Listings:

The MLS data shows that the January 2023 North Florida market had approximately 1,539 active listings. This is the first month-to-month decline we have seen since April of 2022. Given, the actual number of active listings is the second highest we have had in the last 12 months. But the good news is that for the first time we have seen a reduction in the number of Active Listings from last month. The reduction was 1,595 in December to 1,539 active listings in January. Another small increase in the number of “sold” or rented-out homes was also seen in January. Again very small change but it's the 3rd consecutive month where we have seen a small increase in “Sold” rentals. The number of new listings was flat in January.

Listing Price:

Listing prices have again bumped back down a bit from last month which has been the trend for the last 5 months. A little up and a little down each month. The median price for “sold”, or rented out homes is flat from last month. Interestingly enough, the overall median list price from January 2022 to January 2023 is exactly the same at $1,895. This is again demonstrating that the prices for rental homes remain flat, which is far better than the sharp decline that we have been anticipating. The Active Median List price was at $1,895 in January while the “Sold” Median Sale Price in January was at $1,800. Another interesting takeaway is the Median Sale Price from January 2022 to January 2023 saw a 3.22% increase. Overall prices appear to be very consistent and unchanged for the last 3 months. Slight fluctuations but overall very consistent.

Days On the Market (DOM):

DOM has been a huge source of pain for property managers and landlords. Long periods of vacancies can drastically reduce any and all profitability of a rental property. Minimizing vacancy rates is a critical aspect of a successful landlord. Unfortunately, the data continues to show an increase to Days on The Market. We have seen 5 consecutive months with an increased DOM. January saw the Average DOM to be 45 Days. This is up from 43 days in December. This time last year the Average DOM for closed rentals was 27 Days. This continues to be a pain point for landlords and managers and will be an important metric to watch in the coming months as we exit the “slow season” of real estate.

Sold To List Ratio:

In January we did see the Sold To List Ratio increase slightly from the 12-month low point we saw in December. This does indicate that either landlords are listing their homes a little lower, getting closer to their asking price, or a combination of the two. Either way, the increase is small and insignificant although it is a good indicator of prices, as well as supply and demand, balancing out.

Summary:

As we start to exit the holiday season which is typically a slower time of year for renting homes, we are seeing signs of the market settling into a new normal. I believe between February and May we will have a much clearer picture of what the summer may hold. We would normally expect to see demand increase steadily from now through September with a peak in July/August. We also typically see DOM come down during this time while also seeing the number of new listings increase. Many managers and landlords try to time their vacancies so that they are not dealing with vacant homes during the slow fall/winter season. As for renewals, I will continue to advocate for high renewal rates. With the market changing as it is, I prefer to have very high occupancy rates. I am going to personally be renewing as many good quality tenants as I can, even if it means no change or even a reduction in rent.

This data is from the North Florida realMLS and I hope that it helps all fellow landlords make better-informed decisions for their rental homes and investments.