JACKSONVILLE, Fla. – Corporate ownership of multifamily apartment complexes in Jacksonville has surged, raising questions about affordability and community stability, according to a report from the JAX Rental Housing Project.
The report reveals that 72% of local apartment complexes are owned by corporate investment firms, marking a significant shift in ownership patterns. This trend, researchers say, is driving up rents and leaving tenants with fewer options.
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Dr. David Jaffee, a sociology professor at the University of North Florida and director of the JAX Rental Housing Project, attributes the issue to what he calls the “financialization of human shelter.”
“As long as we have the financialization of human shelter, there is no hope to have affordable housing,” Jaffee said.
Jacksonville is a hot spot for faceless landlords.
Jaffe said this is because Florida is a place where investors can invest with minimal constraints and regulations.
“They can pretty much do whatever they want. They can raise rent as high as they want, and they obviously can neglect the properties,” Jaffe said.
Rent increases outpace wages
The report notes that from 2020 to 2023, median rents in Jacksonville rose by an average of 28%, outpacing wage growth. Some tenants faced increases of $300 to $400 per month.
JAX Rental Housing Project Manager Katie Renzi, an undergraduate student at UNF, helped compile the data. She said uncovering property owners was challenging due to layers of corporate entities obscuring ownership.
“It’s on purpose that these corporations are trying to hide their identities,” Renzi explained.
Local and global investors shape market
While global firms like Blackstone and Starwood Capital dominate the market, controlling 27 properties and over 8,200 units, individual investor Jarek Tadla owns the most multifamily properties in Jacksonville: 16 properties with 856 units. However, Tadla also tops the list for eviction filings and code violations.
Jaffee said it’s unusual that an individual investor would own that many multifamily properties in Jacksonville. This level of ownership can limit renters' choices and lead to higher rents.
“These corporations are highly profitable, yet many of their properties are in appalling conditions,” Jaffee said. “They simply do not address these issues because it’s not profitable to do so.”
Renzi said Tadla was one of the owners she struggled to identify.
“He will purchase a property and there will be continuous, ongoing violations where building code inspectors are coming back for several inspection visits because issues aren’t being addressed,” Renzi said.
News4JAX attempted to reach Tadla, Starwood Capital Group, and Blackstone for comment on this story.
A spokesperson for Blackstone said: “Supply and demand drive rent. Given we own less than 1% of housing in Jacksonville, we have virtually no ability to impact market rent trends. Rents increased because there was significantly less supply of housing than demand. In fact, most recently, apartment rents have gone down in Jacksonville as a result of a substantial increase in new apartment communities.”
Pushing for transparency and regulation
Affordable housing advocates are urging policymakers to regulate corporate ownership and prioritize tenant rights. Jaffee recommends establishing a housing resource office and a landlord registry to improve transparency and streamline tenant complaints.
The JAX Rental Housing Project has created an online database for tenants to identify property owners and landlords.
“We want tenants to be aware of the conditions they’re living in and ultimately what they can do about them,” Jaffee said. “Right now, the ability to file a complaint against a landlord for the conditions you’re living under is extremely onerous, complex, and administratively burdensome.”
Their research can be found on the JAX Rental Housing Project website.
The News4JAX I-TEAM has compiled this data into a searchable database to help renters better understand their housing situation. Explore the interactive map below to learn more about your landlord.