Housing Crisis Deepens in Jacksonville Post Hurricane Florence

In a recent government meeting, officials discussed the significant impact of military presence on Jacksonville's housing market, highlighting both challenges and opportunities for local residents. The military's influence has created a stable demand for housing, with a notable percentage of new home purchases being financed through VA loans. Currently, approximately 75% of single-family homes sold are backed by these loans, underscoring the military's role in shaping homeownership trends in the area.

The meeting revealed that Jacksonville's rental market is characterized by low vacancy rates—around 4%—and an even tighter market for homeownership, with vacancies at just 1%. This competitiveness is compounded by a growing number of off-market units, which have doubled over the past decade, largely due to issues stemming from Hurricane Florence. The storm caused extensive damage, with over 5,000 owner-occupied claims reported to FEMA, leading to a significant reduction in available housing stock.

Stakeholders noted that the quality of housing remains a pressing concern, with many units built before 1980 and a lack of new multifamily developments. The last significant residential projects were completed over a decade ago, and the current inventory has not kept pace with job and population growth in the region. As a result, the market is under pressure, with projections indicating that over 8,000 new households are expected to move to Onslow County in the next five years, further straining the already competitive housing landscape.

Officials emphasized the need for new housing units to meet the demands of incoming residents, particularly as the majority of new construction is occurring outside the city limits. The average price for new single-family homes is around $350,000, which may be out of reach for many local workers. As the meeting concluded, participants acknowledged the ongoing challenges posed by the housing crisis, exacerbated by natural disasters and insufficient development, calling for strategic planning to address these issues moving forward.