Data compiled from city and county building departments by the Northeast Florida Builders Association for Clay, Duval, Nassau and St. Johns counties show the greater Jacksonville area growth rate has stabilized, and the predicted 8 percent growth is on track.
With 1,099 single-family permits issued in the four-county area, construction has tapered off.
Last year, 8,829 permits had been issued through the first half of the year. This year, 7,077 permits were issued during the same time period.
Duval County reported an increase in June compared to May, with 659 permits issued in June, 572 in May. Clay was nearly even with 132 permits issued in June compared to 134 in May. Nassau and St. Johns counties showed declines: Nassau had 75 in June, compared to 87 in May, and St. Johns reported 233 permits in June, compared to 242 in May.
Activity in the Jacksonville area is, according to local builders, still among the best in the nation. Citing an article in the June edition of Money magazine, past NEFBA President Bryan Lendry noted that as the red-hot real estate markets cool down, the general effect will be what Money calls a “soft landing.” Money ranks Jacksonville No. 6 in the nation in terms of projected growth. Texas and the Gulf (McAllen, El Paso, Dallas, Houston and New Orleans) take up the top five spots.
Money reports that the median home price in the Jacksonville area is $200,000, reflecting a 20.9 percent increase in the past year and a 78.1 percent change over the past five years.
“This report is an accurate reflection of my own observations that we are experiencing a healthy leveling off,” said Lendry. “We are fortunate to have such a strong economy here, low unemployment rates and a lot of national attention. Jacksonville certainly continues to attract more businesses and more new residents – and that’s good news for the industry.”
Other area builders agree and express their confidence in the Jacksonville market.
“The builders I know count themselves very fortunate to be in this place at this time,” said current NEFBA president and president of The Vintage Group Jerry Linder. “Demand for new homes remains the dominant force in this market, and as people continue to move to Jacksonville, they will continue to need a place to live.”
Even with a slow down to a growth rate of 8 percent, which is what experts are predicting for our area, 2006 will still be the third best year for the residential construction industry in recent history.
Linder said he believes builders in the area have the diversity in their products required to meet the demand for housing in all price ranges, from affordable, entry-level homes to the high-end luxury homes. He also said condominiums and townhomes are increasing in popularity for first-time buyers.
CLAY COUNTY
DUVAL COUNTY
NASSAU COUNTY
ST. JOHNS COUNTY
Greater Jacksonville Area (Clay, Duval, Nassau and St. Johns counties)