May 2024 Rental Market Update for Jacksonville and St. Augustine, Florida
Hello from Blakely our Broker!
Summer is in the air, and as we wrap up May 2024, the NEFL MLS has released the latest rental data. At Nest Finders, your trusted local property management experts, we’re excited to provide you with a comprehensive look at the rental market in Jacksonville and St. Augustine. Let’s dive into the key trends and insights.
Active Rental Listings
May marked the second consecutive month of increased inventory in active rental listings. The number of active rental listings rose from 1,530 in April to 1,682 in May. This growth is influenced by:
Seasonal Factors: More relocations and housing changes typically occur after the school year ends and as summer begins.
Current Sales Market Conditions: With homes not selling as quickly due to interest rates, many owners are opting to rent as a short-term solution while the market stabilizes.
Additionally, the number of "sold" listings, or rented homes, increased from 801 in April to 873 in May. The trend over the past few months shows a clear pattern of increased inventory following a previous four-month decline.
Rental Listing Prices
The median list price for May held firm at $2,000 per month, consistent with April. The stability in listing prices, despite increased inventory, indicates a balanced market where rental homes are positioned to meet tenant expectations.
Median List Price for New Rental Inventory: $2,000/month
Sold (Rented) Median Sales Price: $1,930/month
Higher market prices and increased inventory may be causing rental homes to remain on the market longer than desired. The median list price is a crucial indicator, reflecting the typical price without being skewed by outliers.
Days on Rental Market (DOM)
The average Days on Market (DOM) for May held steady at 41 days, up slightly by one day from April. While this is higher than in past years, it remains within a historically healthy range of 30 to 40 days. However, rising property expenses are leading some landlords to set higher rents, contributing to longer vacancy periods and lower net revenue.
At Nest Finders, we aggressively market properties, conduct regular showings, and provide weekly market updates to owners. We believe a strategic approach is essential, considering factors beyond just pricing, such as location, property condition, and competition.
Absorption Rate
The absorption rate has experienced a slight climb over the past two months after five months of decreases. For May, the absorption rate is at 1.9 months, up from 1.8 in April. This metric, which indicates how long the current rental inventory would last at the current rate of renting, is closely tied to the increased number of active listings and prevailing market conditions.
Absorption Rate for May: 1.9 months
New Listings in May: 1,198
If no new rental properties were added, the absorption rate suggests the current inventory would last approximately 1.9 months, reflecting a balanced rental market.
Nest Finders is proud to be the leading property management firm in Jacksonville and St. Augustine. Our deep local knowledge, combined with cutting-edge technology, enables us to provide unmatched service and strategic market insights. Whether you're a property owner or a renter, we are dedicated to ensuring a seamless and successful rental experience.
Explore our services and listings on our website or contact us today for personalized assistance.
Summary of Market Conditions
The rental market in Jacksonville and St. Augustine remained steady through May 2024, entering a peak rental season with a notable increase in active listings and stable median prices. Seasonal shifts and current interest rates have influenced market dynamics, leading to higher inventory levels and consistent absorption rates.
Key Takeaways:
- Increased Inventory: Active rental listings rose for the second month in a row, reflecting both seasonal trends and market responses to current interest rates.
- Stable Prices: The median rental prices held steady, suggesting a balanced market where supply and demand are in equilibrium.
- Moderate DOM: Days on Market remained stable at 41 days, indicating a healthy but cautious pace in tenant acquisition.
- Slightly Rising Absorption Rate: The absorption rate increased marginally, correlating with the influx of new listings and sustained tenant interest.
As we move forward into the summer months, property owners and investors should remain vigilant and proactive, adapting strategies to maintain occupancy and competitive pricing. Nest Finders will continue to provide detailed market analysis and strategic insights to help navigate these evolving conditions effectively.
