Income Needed to Buy Your First Home in Jacksonville

That’s less than Miami, Orlando, and Tampa.

Jacksonville, Florida is known for its 80,000 acres of parks, miles of beaches, and delicious cuisine. In addition to being a coastal retreat, Jacksonville is also home to a fairly competitive real estate market that has seen modest growth in recent years.

For many people, buy a house in jacksonville A dream has come true, but it’s also important to know how it will affect your finances.From down payments to monthly mortgage payments, there’s a lot to understand before buying your first home

So whether you already live in Florida’s capital city or are considering moving to the area, here’s a breakdown of the income you need to buy your first home in Jacksonville.

check out our original report Detailed nationwide analysis is possible.

How much income do I need to buy a starter home in Jacksonville?

The median sales price for starter homes in Jacksonville is $239,500. To afford this, first-time homebuyers in Jacksonville would need to earn $77,040 annually, an increase of 9.9% from 2023.. Additionally, the median income in Jacksonville is $83,778. The typical resident can afford a starter home.

As expected, starter homes in Jacksonville are more affordable than the average home (all price ranges combined; see methodology for details). To be able to afford a median-priced home in the area, Must earn $99,549 (As of October 2023).

Nationally, you need an income of $75,849 to buy a typical starter home, which costs an average of $240,000. The average household income in the United States is estimated at $84,072.

Jacksonville Housing Market Guide for First-Time Home Buyers

Jacksonville’s housing market has experienced steady growth since the pandemic. Although it is not as popular as a migration destination than neighboring countries, miami and tampathis area is still seen Influx of home buyers From all over the country. The city’s population will increase by 5% from 2019 to 2021, approaching the 1 million mark.

This growth has driven home prices up 29% over the past three years, from $225,000 in January 2021 to $315,000 today.

However, in reality, the apartments in this area are price has dropped Recently, it has been recovering from a surge in popularity that left many buyers on price. Increase in insurance premiums and HOA cost Extreme climate risks also pushed prices down.

If you’re considering a move to Florida’s capital, you’ll love the area’s many nearby amenities and attractions, including the Jacksonville Zoo and Gardens, Riverside Arts Market, and Kathryn Abbey Hanna Park.Several Popular areas in Jacksonville include arlington, bay meadowsand Mandarin Chinese.

What is the typical down payment for a starter home in Jacksonville?

Here are some common down payment amounts for a typical $239,500 starter home in Jacksonville.

Down payments can range from 0% to 100% of the total home price, depending on your budget, loan type, and long-term priorities. Experts have traditionally recommended budgeting for a 20% down payment, but as home prices continue to rise and wage growth remains sluggish, 15% down payment It’s becoming more common.

Depending on the type of loan, you may be able to set a lower down payment. for example, Federal Housing Administration (FHA) The loan requires a down payment of just 3.5%, but the down payment is minimal. conventional loan is 3%. These amounts typically depend on your credit score, so buyers with higher credit scores may be able to make a smaller down payment.

What are the typical mortgage payments for a starter home in Jacksonville?

The typical monthly mortgage payment for a starter home in Jacksonville is $1,926. This assumes a 3.5% down payment and an interest rate of approximately 7%.

If you think this payment is too high, consider the following: rent an apartment in jacksonville. The average rental price is $1,683, which could be a better option if you’re saving for a down payment on a home.You can also use affordable price calculator Find out how much you can afford based on your income and down payment.

What should I do next?

If you’re considering your first home in Jacksonville, it’s important to understand: how much house can you buy. Consider your annual income, credit score, current mortgage rates, and local market trends to make the decision that’s best for you.

From there, jacksonville agent We can help you navigate the entire home buying process and provide valuable local expertise. To learn more about how to buy a home, visit Redfin. First time home buyer’s guide.

methodology

Redfin divides all U.S. real estate into five buckets based on Redfin’s estimates of home market value. He has three tiers of the same size and a tier for the bottom 5% and top 5% of the market. Redfin defines a “starter home” as one whose sales price falls between the 5th and 35th percentiles of homes. Redfin estimates layer.

We calculated the annual income needed to purchase a starter home, assuming the buyer does not spend more than 30% of their income on home payments. Home payments are calculated assuming the buyer has made her 3.5% down payment, and also take into account the median monthly sales price and average mortgage interest rate.

National income data are adjusted for inflation using the Consumer Price Index. 2024 earnings are estimated based on the U.S. Census Bureau’s (ACS) 2022 median household income projections using 12-month moving average nominal wage growth rates. This rate was compiled from the Current Population Survey and reported by the Federal Reserve Bank of Atlanta.

We assume that your home payment includes mortgage principal, interest, property taxes, homeowner’s insurance, and mortgage insurance (if applicable).

All data is sourced as of February 2024 unless otherwise noted.