Jacksonville Landlords Are Holding Properties Longer, Here’s What Changed

Written by:

Alejandra Rodriguez

Date:

05 Mar 2026

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After several years of rising home prices, Jacksonville homeowners are rethinking their next move. Instead of selling, many are choosing to become landlords, a trend that is adding new inventory to the city’s rental market. Property manager Joseph Keshi, founder of Keshman Property Management in Jacksonville, reports that more owners are opting to rent out their homes — even after moving elsewhere — rather than cashing out in a softer sales environment.

Keshi says the decision is often driven by the low mortgage rates many owners secured during the pandemic housing boom. “For them to sell now doesn’t make much sense,” he explains. “They’d rather rent it out because they have great low rates and good income from those properties.”

This marks a clear shift in how small investors approach their real estate holdings. With mortgage rates still above pre-pandemic levels and home prices no longer rising as quickly, the financial advantage of renting now outweighs selling for many owners.

Two Types of Landlords

Keshi identifies two main groups fueling this trend. The first consists of owners who bought in 2020 or 2021, when mortgage rates hovered around 3%. These homeowners have locked in low monthly payments, and their properties now generate positive cash flow as rentals, even after accounting for rising insurance and maintenance costs.

The second group bought at the market’s peak, often with mortgage rates above 6%. For these owners, selling would mean accepting a loss. Instead, they are renting out their homes to avoid turning paper losses into real ones.

“They bought high, and they’ve lost money on the property,” Keshi says. “They don’t want that loss to be materialized by actually selling. They’d rather just have it as a rental property at this point.” Both groups are increasing Jacksonville’s rental inventory, providing more choices for tenants and driving greater competition among landlords.

Impact on the Rental Market

The influx of accidental landlords is not causing rents to fall, but it is affecting how quickly properties are leased and how landlords set prices. Keshi notes that during spring and summer — the busiest times for moving — well-priced rentals typically find tenants within 30 days. In the slower fall and winter months, it can take 45 to 60 days. Setting the right price is critical. “As long as you price it right, it rents,” Keshi says. Landlords who overprice or neglect presentation risk extended vacancies.

For renters, this means a bit more bargaining power, especially outside the peak moving season. Landlords eager to avoid empty units may be more open to negotiating on rent or offering minor concessions, such as flexible move-in dates or small upgrades.

Insurance Costs

One challenge facing all Jacksonville landlords is the sharp rise in property insurance premiums. Florida’s insurance market has seen significant cost increases, which are eating into rental profits. “Insurance affects what your bottom line holding cost is,” Keshi explains. Owners who paid cash for their homes usually remain cash-flow positive, but those with mortgages may see profits shrink or even experience slight monthly losses.

To cope, many landlords are implementing gradual rent increases each year to offset higher costs. However, Keshi notes that this strategy doesn’t always fully cover the gap, and some owners may accept temporary, minimal, or even negative cash flow, depending on their financial situation.

What Renters Need to Know

For Jacksonville renters, timing can influence both availability and negotiation power. Spring and summer bring more competition as families look to move before the new school year, while fall and winter — especially around the holidays — see fewer people relocating.

“Once you get into Halloween, Thanksgiving, and Christmas, families are not typically moving during that time period,” Keshi says. During these months, landlords may be more motivated to accept reasonable offers to fill vacancies.

Renters should also recognize that many landlords are new to property management. Some are managing on their own for the first time, while others are learning how to work with management companies. Keshi recommends asking about maintenance response times, lease flexibility, and who handles day-to-day issues, questions that can reveal how organized and responsive a landlord is likely to be.

Why the Trend Matters Now

Jacksonville’s rental market remains active, fueled by steady population growth and a cost of living that is still lower than many other Florida metros. The decision by more homeowners to hold and rent, rather than sell, is increasing the supply of available rentals, which in turn affects pricing, competition, and tenant expectations.

For homeowners, the decision to rent rather than sell is closely tied to their mortgage rate and the equity they have in their property. Those with low rates and positive cash flow are content to hold. Owners who bought at the peak are waiting for prices to recover before considering a sale.

What This Means

Jacksonville’s growing pool of rental properties is reshaping the market for both landlords and tenants. Owners are adapting to higher insurance costs and longer lease-up times, while renters gain slightly more leverage during off-peak seasons. The city’s continued population growth will likely sustain demand for rentals, but increased inventory means landlords must stay competitive on price and service.

For those considering whether to sell or rent, the key factors remain mortgage rates, equity, and local market conditions. As more owners choose to hold and rent, Jacksonville’s housing dynamics are shifting, creating a rental market that is larger, more competitive, and increasingly shaped by the financial realities of today’s homeowners.

About Joseph Keshi: Joseph Keshi is the founder and CEO of Keshman Property Management in Jacksonville, Florida. He manages single-family rental properties for individual investors. He has over two decades of experience in real estate, including property management and development in New Jersey, before relocating to Florida.

This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.