Jacksonville’s multifamily market in Q3 2025 showed early signs of stabilization, even as vacancy and rents remained pressured by several years of heavy supply. Vacancy had edged down to 12.2%, supported by solid absorption of newly delivered units, though concessions, particularly in newer properties, continued to play a significant role in drawing tenants. This signaled that renters were highly price-sensitive, with many opting for discounted lease-ups rather than remaining in stabilized assets. On the rent side, conditions stayed soft: asking rents averaged about $1,500 and annual rent growth decreased by 1.5%, reflecting the ongoing influence of elevated supply and competitive pricing. Still, the pace of new construction had slowed and absorption remains positive, narrowing the supply-demand imbalance.

 

By the end of the quarter, the market began shifting toward a more balanced footing, laying groundwork for firmer vacancy and rent trends moving into late 2025 and early 2026.

 

Key Findings

• Jacksonville continues to rank among the nation’s leaders in net migration, despite a slowdown in overall population growth.
• Submarkets Saint Augustine and the North Side dominate development activity, with both areas accounting for nearly half of all units under construction.
• Supply and demand imbalance has resulted in constrained rent growth, as the metro posts flat to negative rent performance for 10 consecutive quarters. However, conditions are forecast to shift in early 2026.

 

Jacksonville Multifamily Supply & Demand Dynamics

Source: CoStar Group, Inc.

 

 Jacksonville Demographics

Source: CoStar Group, Inc.

• Unemployment Rate: 3.8%
• Current Population: 1,787,859
• Households: 715,408
• Median Household Income: $84,160

 

Jacksonville ranked #7 best big U.S. city to live and #3 large city for economic growth.

2025 | Source: CoStar Group, Inc.

 

Jacksonville’s economy continues to show impressive resilience and long-term potential, supported by steady job creation, solid GDP performance, and robust population inflows. Employment growth accelerated in early 2025, fueled by strength in leisure and hospitality, healthcare, and construction, while tourism added thousands of jobs and remains a key pillar of the metro’s economic identity. Major investments, including the new University of Florida graduate campus and Otto Aviation’s planned manufacturing facility, reinforce the city’s growth trajectory, as does ongoing downtown revitalization aimed at enhancing infrastructure and quality of life. With strong in-migration, a young and skilled workforce, and competitive living and business costs, Jacksonville remains one of Florida’s most promising markets, even as challenges such as sector imbalances and infrastructure gaps persist.

 

Population, Labor Force, & Income Growth

Source: CoStar Group, Inc.

 

 Jacksonville Multifamily Construction

The market transitioned out of an intense multi-year development cycle and into a more measured period of new supply in Q3 2025. Roughly 813 units were delivered during the quarter, while another 2,800 units remained under construction, signaling that the pipeline was still meaningful but clearly moderating from prior years. Developers continued to respond to elevated vacancy and weak rent growth with greater caution, pulling back on starts and allowing the market to gradually absorb the large wave of new inventory added over the past several years. Despite the slowdown, construction remained concentrated in growth corridors such as Saint Augustine and the North Side, with most projects skewed toward higher-quality product types. This pattern aligned with both migration-driven demand and renter preferences, while also setting the stage for a more balanced supply environment heading into 2026.

 

Units Construction Starts

Source: CoStar Group, Inc.

 

Units Under Construction

Source: CoStar Group, Inc.

 

 Jacksonville Multifamily Sales

Sales activity in Q3 2025 remained subdued, though cautious optimism began to emerge. Quarterly volume totaled $315 million, reflecting an environment where investors stayed selective and leaned toward stabilized assets that were easier to finance amid elevated vacancy and continued rent softness. Pricing held relatively firm, with an average price per unit of $181,000 and cap rates around 5.8%, however many buyers continued to underwrite deals conservatively, often looking for stronger second-year yields to justify acquisitions. While insurance and capital costs continued to weigh on transaction velocity, sentiment improved modestly as expectations for firmer rent trends and easing operating pressures took hold. As a result, Q3 activity signaled early groundwork for a gradual recovery in deal flow heading into 2026.

 

Jacksonville Multifamily Sales Volume

Source: CoStar Group, Inc.

 

By the Numbers

Q3 2025 | Source: CoStar Group, Inc.

• Sales Volume: $315M
• Price Per Unit: $181K
• Cap Rate: 5.8%
• Vacancy Rate: 12.2%
• Rent Growth: (1.5%)
• Asking Rent Per Unit: $1.5K
• Under Construction: 2.8K units
• Delivered: 813units
• Absorbed: 1.1K units