Too many apartments in Jacksonville, too soon?

This is a very interesting and informative article by Ashley Gurbal Kritzer, Reporter- Jacksonville Business Journal, that touches upon many factors to consider when deciding where, when, and why to construct or buy residential rentals, from single-family through multi-family (5+ units). The discussion concerning equity financing v. bank, construction lending is quite insightful.

The apartment construction boom on Jacksonville’s Southside is likely to subside in the coming months, a financing expert said.

Nearly 2,000 apartments in nine communities in or near the St. Johns Town Center have been announced since the beginning of the year, raising concerns of overbuilding.

Then there’s the issue of jobs. Within our current mixed-economy system, without jobs that pay enough, recovery will not be real/sustainable.

…Richard Buck, the Morgan Group’s regional vice president of development for the Southeast, told The Business Journal in April. “The challenge for all of us is, when the music stops, who’s going to be the last one standing when the pool dries up and there are no new jobs? If we nestle a good development close to where the jobs are supposed to come, we’re hedging bets [that the] jobs will be there to sustain the prospective growth.”

via Too many apartments in Jacksonville, too soon? – Jacksonville Business Journal.

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