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 reasonable progress lately.
For a lot of, shopping for a house in Jacksonville is a dream come true, but it surely’s additionally necessary to know the way it will influence your funds. From down funds to month-to-month mortgage funds, there’s quite a bit to know earlier than shopping for your first residence
So whether or not you already stay in Florida’s capital or want to relocate to the realm, right here’s a breakdown of the revenue you’ll must buy your first residence in Jacksonville.
Try our unique report for an in depth nationwide evaluation.
How a lot revenue do you’ll want to purchase a starter residence in Jacksonville?
The median sale worth of a starter residence in Jacksonville is $239,500. As a way to afford this, first-time homebuyers in Jacksonville ought to make $77,040 per yr, up 9.9% from 2023. Additionally, the median revenue in Jacksonville is $83,778, which means the everyday resident can afford a starter residence.
As anticipated, starter houses in Jacksonville are extra inexpensive than the typical residence (all worth brackets mixed; see methodology for particulars). As a way to afford any median-priced residence within the space, you’ll must make $99,549 (as of October 2023).
Nationwide, you want an revenue of $75,849 to afford a typical starter residence, which prices a mean of $240,000. The typical U.S. family earns an estimated $84,072.
First-time homebuyers’ information to the Jacksonville housing market
Jacksonville’s housing market has skilled regular progress following the pandemic. Whereas not as fashionable of a migration vacation spot as neighbors Miami and Tampa, the realm 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 progress has lifted home costs by 29% over the past three years, from $225,000 in January 2021 to $315,000 at the moment.
Nevertheless, condos within the space have really dropped in worth not too long ago as they get well from a surge in reputation that priced out many patrons. Rising insurance coverage and HOA prices ensuing from excessive local weather dangers additionally pushed costs down.
In the event you’re seeking to transfer to the Florida capital, the realm is residence to many facilities and sights all through its neighborhoods, just like the Jacksonville Zoo and Gardens, Riverside Arts Market, and Kathryn Abbey Hanna Park. Some fashionable neighborhoods in Jacksonville embody Arlington, Baymeadows, and Mandarin.
What does a typical down fee appear like for a starter residence in Jacksonville?
Listed below are some widespread down fee quantities for a typical $239,500 starter residence in Jacksonville:
Down fee proportion | 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 overall 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 growing price of houses and continued sluggish wage will increase has led to a 15% down fee turning into extra widespread.
Some mortgage sorts enable for decrease down fee quantities. For instance, a Federal Housing Administration (FHA) mortgage requires simply 3.5% down, whereas the bottom attainable down fee for a standard mortgage is 3%. These quantities sometimes rely in your credit score scores, so patrons with larger credit score scores might 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 can take into account renting an house in Jacksonville. The typical lease worth is $1,683, probably making it a greater possibility when you save for a down fee on a home. It’s also possible to use an affordability calculator to see what you possibly can afford primarily based in your revenue and down fee.
What do you have to do subsequent?
In the event you’re available in the market on your first residence in Jacksonville, it’s necessary to know how a lot home you possibly can afford. Take your annual revenue, credit score rating, the present mortgage charges, and native market traits to decide that works greatest for you.
From there, a Jacksonville agent will help you navigate your complete residence shopping for course of and supply precious native experience. To study extra about tips on how 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 houses’ market values. There are three equal-sized tiers, in addition to tiers for the underside 5% and prime 5% of the market. Redfin defines “starter houses” as houses whose sale worth fell into the Fifth-Thirty fifth percentile of the Redfin Estimate tier.
We calculated the annual revenue wanted to afford a starter residence by assuming a purchaser spends not more than 30% of their revenue 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 into consideration.
The nationwide revenue knowledge is adjusted for inflation utilizing the Shopper Value Index. 2024 revenue is estimated primarily based on projections from the U.S. Census Bureau’s (ACS) 2022 median family revenue utilizing the 12-month shifting common nominal wage progress 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 knowledge sourced February 2024 until in any other case acknowledged.