It’s lower than Miami, Orlando, and Tampa.

Jacksonville, FL, is thought for its 80,000 acres of parks, miles of seashores, and scrumptious delicacies. Along with being a coastal respite, Jacksonville can be house to a reasonably aggressive actual property market that’s seen reasonable progress in recent times. 

For a lot of, shopping for a house in Jacksonville is a dream come true, however it’s additionally vital to know the way it will impression your funds. From down funds to month-to-month mortgage funds, there’s quite a bit to know earlier than shopping for your first house 

So whether or not you already dwell in Florida’s capital or wish to relocate to the realm, right here’s a breakdown of the earnings you’ll must buy your first house in Jacksonville.

Take a look at our authentic report for an in depth nationwide evaluation.

How a lot earnings do it’s essential purchase a starter house in Jacksonville?

The median sale value of a starter house in Jacksonville is $239,500. With a purpose to afford this, first-time homebuyers in Jacksonville ought to make $77,040 per yr, up 9.9% from 2023. Additionally, the median earnings in Jacksonville is $83,778, which means the everyday resident can afford a starter house.

As anticipated, starter houses in Jacksonville are extra reasonably priced than the typical house (all value brackets mixed; see methodology for particulars). With a purpose to afford any median-priced house 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 house, which prices a median 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 progress following the pandemic. Whereas not as well-liked of a migration vacation spot as neighbors Miami and Tampa, the realm has nonetheless seen an influx of homebuyers from across the nation. 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% during the last three years, from $225,000 in January 2021 to $315,000 immediately. 

Nonetheless, condos within the space have truly dropped in value lately as they get better from a surge in recognition 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 realm is house 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 well-liked neighborhoods in Jacksonville embrace Arlington, Baymeadows, and Mandarin.

What does a typical down fee appear like for a starter house in Jacksonville?

Listed here are some widespread down fee quantities for a typical $239,500 starter house in Jacksonville:

Down funds can vary from 0% to 100% of the full home value, relying in your finances, mortgage sort, and long-term priorities. Whereas specialists have traditionally really helpful budgeting for a 20% down fee, the growing price of houses and continued sluggish wage will increase has led to a 15% down fee changing 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 typical 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 house in Jacksonville?

The everyday month-to-month mortgage fee for a starter house in Jacksonville is $1,926. This assumes you set 3.5% down and have round a 7% rate of interest.

If this fee sounds too excessive, you could possibly take into account renting an condo in Jacksonville. The common lease value is $1,683, presumably making it a greater possibility when you save for a down fee on a home. You too can use an affordability calculator to see what you may afford primarily based in your earnings and down fee.

What must you do subsequent?

For those who’re available in the market to your first house in Jacksonville, it’s vital to know 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 can assist you navigate the whole house shopping for course of and supply beneficial native experience. To be taught extra about the right way 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 value fell into the Fifth-Thirty fifth percentile of the Redfin Estimate tier. 

We calculated the annual earnings wanted to afford a starter house by assuming a purchaser spends not more than 30% of their earnings on housing funds. Housing funds are calculated assuming the client made a 3.5% down fee and likewise take a month’s median sale value and common mortgage-interest charge into consideration. 

The nationwide earnings information is adjusted for inflation utilizing the Client Value 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 progress charge. The speed was compiled from the Present Inhabitants Survey and reported by the Federal Reserve Financial institution of Atlanta.

We assume housing funds embrace the mortgage principal, curiosity, property taxes, householders insurance coverage, and mortgage insurance coverage (when relevant).

All information sourced February 2024 except in any other case acknowledged.