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NorthEast Florida Market Update

Jason Hartman

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Jason Hartman hosts a local market specialist in the Northeast Florida region. They discuss rental demand in the area as well as the on-going migration. Many people from the northeast are moving south to Florida, which was occurring even before the pandemic.

Announcer 0:04
Welcome to the heroic investing show. As first responders we risk our lives every day our financial security is under attack. Our pensions are in a state of emergency. A single on duty incident can alter or erase our earning potential instantly and forever. We are the heroes of society. We are self reliant and we need to take care of our own financial future. The heroic investing show is our toolkit of business and investing tactics on our mission to financial freedom.

Jason Hartman 0:40
Hey, I wanted to give you just a very quickie update on a couple of our markets, Northeast Florida, which encompasses two markets and some kind of consider Ocala to be that area. I don’t know if I do but so we’re going to talk about three different things. What is going on, tell us more

Local Market Specialist 0:58
obviously, we’re always looking for Four signs in different times. And one of the main things that we’ve seen incredibly is the occupancy rate. We have so far this month rented 52 units, which is 10 above normal for our property management group, we’re actually seeing an increase in rental demand. And I think it’s probably Jason, the fact that we’re more in a sprawl area. As you know, Jacksonville is the largest square mileage city in the nation on Calla has more elbow and has its own economic infrastructure. It has more of a rural feel. And that’s what people are drawn to right now, coupled with our new construction model where they’re able to see the homes through our keyless entry system, and being the first ones to move into it. It’s really increased our rental demand, which has been exciting to see

Jason Hartman 1:49
Yeah, let me tell you something. Every single expert I interview, I always I’m testing my own theory that by the way, I’m going to pass my myself on the back. I was saying this two months before anybody else was before john burns, before the mainstream media before the CEO of red fin. Okay, I’m a little envious that I didn’t get all that attention even though I was saying this before everybody else. And that is predicting the mass migration out of high density areas to lower density areas like the suburbs and even the Serbs, and apartment rental traffic. Now this is apartments I get it. It’s not exactly our product, but it’s still telling. They had the highest level of monthly traffic meaning searches on their website on apartments.com and April 2019 52,000,020 2059 million. Okay. So trap America is on the move. Like we were talking about to give it a surfing metaphor. This is a swell that’s way out in the ocean now. In the next couple of months, it’s going to turn into a wave. And then at some point, I don’t know exactly when it will crest and then it will break and it’ll be whitewater everywhere, meaning all those people have moved or are moving at that time to these lower density areas. They had over 7 million more visits and a growth rate of 14% year over year on apartment searches. Now, I’m guessing this is not in their survey, that those searches are high density apartment or high density condo people searching for lower density apartments, meaning that if they want to move to an area, maybe they grab themselves an apartment first, before they buy a home in that area or before they move into more permanent rental, they get an apartment on a short term lease, and then you know they get into the home. They really want But the every expert agrees with me whether it be Jim Rogers, the, you know, famous hedge fund manager, that used to be partners with George Soros, I interviewed him two days ago. Today I interviewed Harry dent. He’s been on the show 11 times, he agrees, everybody agrees with this trend. So I think it’s just going to be huge. And our listeners are taking advantage of this with the type of product that you have available, because you’re the boots on the ground person.

Local Market Specialist 4:25
Yeah. And we’re going to be busy, Jason, because let me tell you something right now, we’ll start with Jacksonville. And they’re all the same for basically Palm Coast in Ocala, a normalized market and normalize market here as usually about six and a half months of inventory available for sale. Right now we’re at 3.2 months of inventory. So you

Jason Hartman 4:45
literally have enough. In other words, we’re unhappy absorption rate has increased meaning people are gobbling up the properties quicker, or there’s just less inventory on the market and I’ve kind of heard both of those things. Depending on the market, but you have literally half the inventory level you usually have, right?

Local Market Specialist 5:06
Exactly half, which is incredible. Which shows and as soon as on one of our new construction models is done, we were at about 31 days and now that’s even shortened through the pandemic. Yeah, four days to get it.

Jason Hartman 5:18
But you know, that’s just amazing that it’s that inventory is that low and things are that strong. In an era when for two months, people really haven’t been out of the house. You know, they’re not they’re not even out looking. Imagine how this shift accelerates dramatically when people actually go out. They go to open houses, they start looking at houses, and wow, it’s it’s pretty amazing. Okay, any specifics on Jacksonville Ocala Palm Coast. Our main niche right now we’re focusing on is again, as you know, we’ve always done is the low density we have always stuck to residential, so the single family the duplex in the Quad That’s kind of our, you know, three punches. And they, they again have space, they don’t have giant gathering areas with too many people which people don’t want. So we’re staying with that model. And we’re seeing the demand grow. So we

Local Market Specialist 6:14
are overall we are, we’re gonna keep running the play. We’ve been running before the pandemic, Jason but now we’re seeing us get into even more favor with that simple thing because we are low density like you said, in areas with more sprawl where you’re not on top of each

Jason Hartman 6:28
other. Now people can socially distance they don’t have to get into an elevator. They don’t have to take mass transit. And by the way, I interviewed this morning and this show will be published soon, an expert on homelessness who lives in New York City, and he he charts homelessness all over the nation, but is especially focused on New York City he heads up the Central Park forgive me I can’t remember the exact name but like the Central Park association or something like that, you know, Central Park, New York and he says that the the mass transit infection rate is just a serious problem. So you don’t want to have to get in any type of mass transit nowadays. What type of product do you have in each of those markets? Just tell us about that real quick.

Local Market Specialist 7:13
We have, again a mixture of single family homes, duplexes, and quads and we are doing as you know, a project in Atlanta of townhouses that’s going very well near the famous Serengeti. So our product right now, duplexes in Palm Coast and Ocala. We do have a few quads available. And then a few scattered single family homes between each of Jacksonville Palm Coast in Ocala. And as you know, Jason, we’ve been we’ve been very busy. So we’re, we’re we replenish about the 20th of every month, but that’s what we have available at this time.

Jason Hartman 7:48
What do you mean you replenish the 20th of every of every month is that when the truck comes in and delivers your new inventory of houses, I’m kidding. Santa Claus shows up

Local Market Specialist 8:00
Santa Claus comes the 20th of every month where, with our building partner, we sit down, you know, based on the demands of what we’ve done, looking forward to what clients are asking for. I am, again, putting us into a position of having the properties that are highest in demand. And like we said, there’s the highest in demand. I’m very glad Jason, we stuck to low density. I think people are very happy. And again, it’s just the strength of a simple single family home. Yeah. And new construction, as you know, is, is showing even more work because people aren’t traveling now. So a lot of people as you know, have been I’ve been purchasing through us, but they feel really good that they’re, they’re getting videos of the totally new home that they’re getting the 210 warranty. It’s giving them a lot more feeling of safety of marcher,

Jason Hartman 8:43
you know, anybody in the business of supplying anything for the home is going to do pretty well in these trying times, you know, for the people who have the wherewithal who have money. Now, granted, some don’t You know, it’s a, it’s a divide, there’s no question about it. But for the people that have money to spend, they’re going to be buying furniture, they’re going to be improving their home, the home is the center of the universe. And they’re just going to want to make their home nice. They’re going to be buying home office furniture, adjustable height desk, home gym equipment, and they need space for that. And these these suburban type homes that you offer, through our network are perfect. I mean, they’re just totally perfect. You know, if they lived in a more high density environment, whether they owned a condo or lived in an apartment, you know, they had a common area and apartment complex or an association gym and a pool, those things are closed down. I mean, I’ve seen them you know, the pools are closed down, the gyms are closed down, they can’t use any of that stuff. So, you know, they want to have a garage or a spare bedroom for that. So you’re offering the perfect thing. So folks, if you want to check out any of these properties, go to Jason Hartman comm slash property Reach out to our investment counselors at one 800 Hartman. And we’ll be happy to help you. smart investors are they see this wave coming and they’re taking advantage of it. They are stocking up on these good quality suburban rental properties before this massive tsunami of demand hits, and they’re getting in there in the right position. So thanks very much for sharing this with us. Thank you.

Jason Hartman 10:32
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