Jacksonville ranks among the top 10 slowest-growing housing markets in the U.S., facing challenges in recovery amid a national downturn in home sales

Jacksonville has emerged as one of the slowest-growing housing markets in the United States, according to a study by Creditnews Research.

Amid a nationwide downturn in home sales — the worst in nearly 30 years — Jacksonville’s real estate market has comparatively lagged in recovery, alongside Cape Coral and Deltona, ranking among the top 10 slowest-selling metro areas, a list that also includes several cities in Texas such as Austin, McAllen, and San Antonio.

The study, encompassing data from January 2020 to January 2024, found that cities with reduced housing inventories tended to see faster sales, a trend that did not apply to Jacksonville, where the markets have cooled.

“All the 10 slowest-selling metros in our study are larger Sun Belt cities, with three located in Texas and another three in Florida,” the report reads.

Jacksonville’s housing market saw a 9.8 percent increase in median home prices last month, reaching $345,990, according to an aggregation of local real estate trends and data. Despite the rise in prices, the market remains competitive, as evidenced by a slight decrease in the percentage of the original list price received, now at 96.8 percent, and the fact that 13.7% of properties have sold above their listing price.

The Months Supply of Inventory (MSI) in Jacksonville has also seen a significant increase, up 58.4 percent to 3.8 months, suggesting a market that, while still favoring sellers, is moving towards a more balanced supply and demand dynamic.

In terms of market activity, the Northeast Florida Association of REALTORS reports growth with new listings up 42 percent and closed sales rising by 13.4 percent from the previous year. Rental market trends, however, show a cooling off, with median rent prices at $1,549, marking an 11 percent decrease over the past year, significantly lower than the national average.

Looking ahead, the Jacksonville housing market forecast suggests moderate growth, with Zillow data predicting an average home value of $294,450, a slight decline from the previous year.