Report: Despite price increases, Jax housing market still ranks high for affordability

Citing affordability, a new report lists the Jacksonville metro area as one of the nation’s top housing market to watch.

Insurify ranked Jacksonville No. 9, despite the area’s average home value and the annual insurance costs being higher than the national average due to other factors like average home value appreciation, the increase in new housing units year over year, the ratio of new housing units to homeowners and population changes.

The insurance comparison shopping website listed the the average home value at $243,540 with the average annual insurance cost at $1,200, compared to Jacksonville’s average home value being more than $355,000 and with residents paying an average of $2,460 for homeowners insurance, according to the insurance aggregator. 

One of the main reasons for the higher than national average insurance rate is that cities in Florida, Texas and California have a high risk of damage from natural disasters. Despite this reality, all of the top 10 cities with the highest number of new units per 100,000 homeowners have high FEMA risk ratings, ranging from “Relatively High” to “Very High,” including in Jacksonville.

Florida regions that placed high on Insurify’s list of markets to watch, including Miami, Sarasota, Orlando, Jacksonville and Fort Myers, saw the highest home insurance rates compared to other cities on the list. Prospective homeowners should bear in mind the high cost of home insurance in Florida when making a purchase, the report noted.

In general, Jacksonville housing appears to be stabilizing from a strong sellers’ market that peaked during the pandemic as people sought larger homes. Increasing interest rates for mortgages is generally cited for a slight slowdown. But the number of homes under construction is once again on the rise in Jacksonville.

The number of building permits for single-family homes issued on the First Coast soared in August, as the number surpassed the number of permits pulled each month since March 2022.

In August, 1,358 building permits for single-family homes were issued on the First Coast, according to Northeast Florida Builder’s Association’s latest data, a jump of more than 47% over the number of permits pulled in July.

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