Regional Review: Jacksonville on the rise as population grows and investment flows in

Writer: Pablo Marquez

Regional Review is a year-end series from Capital Analytics that looks at key developments throughout the year and sets the stage for what’s to come in the near term.

December 2024 — Jacksonville is on the rise, claiming its place among the fastest-growing cities in the U.S. with booming industries, a surging population, and transformative projects reshaping its future. From being the second hottest job market in the country to welcoming a wave of corporate relocations, the River City is thriving across every metric — yet rising housing costs and a strained rental market pose challenges to sustaining this momentum.

“Jacksonville offers a great quality of life, and it’s still a relatively affordable place to live,” said Bryan Moll, CEO of Gateway Jax, in a recent interview with Invest:. 

Ranked No. 15 among the nation’s fastest-growing cities in the United States, Jacksonville’s metro area has expanded by 27% over the past decade-plus, growing from 1.35 million in 2010 to 1.71 million in 2023. Additionally, it holds the No. 10 spot among the 20 cities with the highest move-in rates nationwide.

Across Northeast Florida, the labor market is thriving, fueled by significant business growth, relocations, and expansions that have generated a high demand for jobs. In 2023, the city was ranked as the second hottest job market in the United States by the Wall Street Journal. This ranking was part of a study conducted by the business newspaper in collaboration with Moody’s Analytics, which evaluated 380 U.S. metropolitan areas based on five key employment indicators: unemployment rate, labor-force participation rate, job growth, labor-force growth, and wage growth. Jacksonville outperformed most other cities, trailing only Salt Lake City, while surpassing Orlando (No. 3), Tampa (No. 4), Oklahoma City (No. 5), and Miami (No. 6).

Jacksonville ranked as the No. 1 major city for corporate relocations from 2022 to 2023, according to data from the Securities and Exchange Commission (SEC). The region is home to over 150 corporate, regional, and divisional headquarters and has welcomed a diverse range of businesses, from Fortune 500 companies to cutting-edge startups. Recent notable relocations and expansions include prominent companies like Dun & Bradstreet, Paysafe, Johnson & Johnson Vision, and Redwire Space.

“Looking back to 2023, we directly brought 2,500 new jobs. It also had the spin-off of 2,600 additional jobs. So, for every direct job there’s also indirect jobs coming in,” said Aundra Wallace, president of the JAXUSA Partnership division of the JAX Chamber, highlighting that corporate relocations have benefited workers across the economic spectrum, from entry-level positions to high-ranking roles.

Much like other parts of Florida, affordable housing has posed a threat to sustained growth as rising costs and increasing demand strain the market. Public and private stakeholders are collaborating to mitigate rising housing costs, with initiatives such as workforce housing projects and mixed-use developments aimed at keeping homes affordable near major employment hubs.

While Florida ranks No. 40 in the United States for housing affordability, Gov. Ron DeSantis’ Live Local Act, signed into law over a year ago, aims to address the issue. However, a recent report from the Florida Policy Institute indicates the law has fallen short for many workers whose salaries remain below the threshold needed to afford adequate housing. Additionally, the JAX Rental Housing Project highlights that 72% of Jacksonville’s apartment complexes are owned by corporate investment firms, with rent prices reportedly rising. As a result, Jacksonville renters now pay nearly 40% more than they did in 2019, with average monthly rents increasing from $1,200 in 2019 to $1,700 in 2024.

A significant milestone in Jacksonville’s growth came with the unveiling of the ‘Stadium of the Future’ by the city and the Jaguars. This landmark agreement ensures the Jaguars will remain in Jacksonville for the next 30 years, solidifying the NFL’s presence in Northeast Florida through a long-term lease. Mayor Donna Deegan and Jaguars owner Shad Khan have endorsed the initiative, which aims to transform the stadium into a modern, state-of-the-art facility. The project is seen as a catalyst for revitalizing Jacksonville. The Jaguars’ organization view the plans as a significant economic opportunity, driving financial growth, fostering business activity, and promoting community prosperity through reinvestment.

“We expect the new stadium’s impact to be significant. The reason we have such lofty expectations is because it’s not just a new stadium. The impact of the stadium should be felt in all corners of Jacksonville,” said Mark Lamping, president of the Jaguars, in a recent interview with Invest:.

“It will prove to be a catalyst for downtown development, helping downtown realize its full potential as an economic engine that can generate revenue for the benefit of the entire community. As Jacksonville grows, so will the Jaguars,” he noted.

Meanwhile, the Jacksonville Transportation Authority (JTA) is making significant progress in modernizing the city’s transit system. Key milestones are being reached in the construction of the Autonomous Vehicle Innovation Center, which aims to enhance public transportation, create jobs, and attract substantial foreign investment to the city. Additionally, the JTA is acquiring a second diesel hybrid-electric boat for the St. Johns River Ferry, thanks to a $15.6 million grant from the U.S. Department of Transportation (USDOT). The new boat will improve the efficiency of transporting passengers and vehicles across the river.

As for visitors to the area, the hotel industry continues to defy national trends, maintaining steady growth despite higher construction and financing costs that have slowed developments in other U.S. markets. Unlike many regions, Jacksonville is forging ahead with a robust hotel development pipeline, positioning itself as a standout in the post-pandemic era. This year alone, four hotels have opened in the city, with two more slated to debut soon. A prime example of Jacksonville’s hotel boom is the Four Seasons’ partnership with Shad Khan to build a luxury hotel near the Jaguars’ new stadium, set to open downtown in 2026. Adding to this momentum, AC Hotel by Marriott announced a second location downtown after opening its first at St. Johns Town Center in March. Meanwhile, B&B Hotels plans a second Jacksonville location, Home2 Suites by Hilton opened in Brooklyn in April, and two new hotels, Tru by Hilton and TownePlace Suites by Marriott, debuted near the airport this year.

With 2025 approaching, Jacksonville and Northeast Florida are poised for continued growth across various industries and sectors.

“There’s just a bright future in Jacksonville from an economic standpoint,” said Moll.