Jacksonville vs. Wilmington: Which Coastal Market Is Better for Rentals?

For real estate investors eyeing North Carolina’s coastal markets, Jacksonville and Wilmington stand out as two compelling options. Both cities offer unique advantages, from strong rental demand to affordable entry points, but they cater to different investor goals. This blog compares the Jacksonville, NC, real estate market with Wilmington’s to help you decide which is the better fit for your long-term rental investment strategy. Let’s dive into the key factors: market trends, rental demand, property types, and investment potential.

Jacksonville, NC Real Estate: Affordable and Military-Driven

Market Trends

Jacksonville, the heart of Onslow County, is a seller’s market with a median home price of $260,986 in April 2025, up 6.4% year-over-year. Homes sell relatively quickly, averaging 38 days on the market, though this is slower than the 22 days seen in January 2024. Inventory is tight, with 1.8 months of supply, indicating strong demand and limited availability. The median price per square foot is $162, reflecting affordability compared to national averages. Migration Trends: The Jacksonville MSA (208,537 residents in 2023) sees significant population growth in coastal and suburban areas, driven by migration and housing expansion, though some urban census tracts in Jacksonville city have experienced population declines, potentially softening rental demand in those areas.

Rental Demand

Jacksonville’s rental market is heavily influenced by its proximity to Camp Lejeune, a major Marine Corps base. With 44% of residents renting, the city benefits from a stable tenant pool of military personnel, who often prefer leases due to frequent relocations. Average monthly rents for three-bedroom single-family homes range from $1,800 to $2,200, while multi-family units (2-4 units) fetch similar rates per unit. However, rental prices have seen a 4.2% year-over-year decline as of January 2024, suggesting a cooling period that may require strategic pricing to maintain occupancy.

Property Types

Single-family detached homes dominate Jacksonville’s housing stock (47.14%), followed by row houses (21.05%) and large apartment complexes (20.72%). The market leans toward newer properties, with 41.2% of homes built since 2000, appealing to renters seeking modern amenities. Investors can find three-bedroom single-family homes starting around $250,000, making Jacksonville an accessible entry point for rental investments.

Investment Potential

Jacksonville’s affordability and consistent demand from military tenants make it a strong choice for investors prioritizing steady cash flow over rapid appreciation. The city’s diverse economy, including logistics and healthcare, supports long-term stability. However, investors should factor in hurricane insurance costs and the potential for slower appreciation compared to other coastal markets. Real-World Investment Example: A 3-bedroom, 2-bathroom home purchased for $195,000 with $4,900 in make-ready costs generates a Total ROI of 21.42% in Year 1, and rising to 38.99% in Year 10, driven by stable $1,590 monthly rents and low entry costs, ideal for investors targeting military tenants. (*This was an off market deal and returns are subject to purchase price, and how the deal was structured.)

Wilmington: Coastal Appeal and Diverse Rental Demand

Market Trends

Wilmington, part of the Wilmington Metropolitan Statistical Area, has a median home price of $370,000 as of August 2024, up 3.3% year-over-year. The market is more balanced, with 4 months of housing supply and 53,008 statewide listings, reflecting a 12.9% increase in inventory. Homes stay on the market longer, averaging 63 days, which gives buyers more negotiating power. The median price per square foot is higher than Jacksonville’s, at around $184. Migration Trends: The Wilmington MSA (301,332 residents in 2023) is one of the fastest-growing metro areas in the U.S., with an 83% inbound migration rate in 2024, driven by job growth and coastal appeal, boosting rental demand in suburban and coastal areas like Brunswick and Pender Counties.

Rental Demand

Wilmington’s rental market is dynamic, driven by its coastal location and a sizable student population from the University of North Carolina Wilmington (UNCW). Average rents for three-bedroom apartments or homes vary by neighborhood, from $1,800 in affordable Springfield to $3,500 in Spring Park. The rental vacancy rate is 6.3%, reflecting increased supply from recent multifamily projects. Despite a 3-4% rent decrease year-over-year, demand remains strong due to job growth in healthcare, education, and technology.

Property Types

Wilmington offers a diverse range of properties, including historic homes and new developments. Three-bedroom single-family homes and condominiums are popular among investors. Median listing prices in affluent areas like Mandarin reach $627,000, but more affordable neighborhoods like Arlington offer three-bedroom units for around $1,850 monthly. This variety allows investors to target different renter demographics, from students to retirees.

Investment Potential

Wilmington’s appeal lies in its potential for both appreciation and cash flow. The city’s lower property taxes and growing population make it attractive for investors seeking a balance of future value growth and immediate returns, with higher entry costs. However, competition is higher, and maintenance costs for coastal properties can be significant. Real-World Investment Example: A 3-bedroom, 1-bathroom home in Castle Hayne, purchased for $212,000 with $40,624 in rehab costs, generates a Total ROI of 36.2% in Year 1 (this was because of forced appreciation from a rehab), and to 32.57% in Year 10, fueled by $2,045 monthly rents and strong growth from inbound migration. (*This was an off market deal and returns are subject to purchase price, and how the deal was structured.)

Jacksonville vs. Wilmington: A Side-by-Side Comparison                                           

Which Market Is Right for You?

• Choose Jacksonville if you’re a market-shopping investor looking for affordability and consistent rental demand. Its military-driven market ensures a reliable tenant base, and lower property prices (starting at $250,000) yield higher long-term ROI (up to 38.99% by Year 10), as shown in the example deal. Here expect moderate appreciation and steady rental demand.

• Choose Wilmington if you prioritize long-term appreciation and diverse rental opportunities. Its higher entry costs ($370,000 median) and competitive market are offset by strong job growth and significant inbound migration, delivering solid ROI (up to 32.57% by Year 10) and higher initial cash flow, as shown in the Castle Hayne example.

Final Thoughts

Both Jacksonville and Wilmington offer compelling opportunities for rental investors, but your choice depends on your budget, risk tolerance, and investment goals. Jacksonville is a safe bet for affordable, stable cash flow with higher long-term ROI, particularly in coastal and suburban areas, as demonstrated by a recent 3-bedroom deal. Wilmington offers stronger appreciation potential and immediate cash flow, fueled by rapid population growth, as shown in a Castle Hayne investment example. To make an informed decision, a personalized market analysis can provide deeper insights tailored to your strategy. Regardless of where you buy, focus on 3 bedroom houses around 1,400-1,600 sqft houses. These houses rent the fastest and attract the residents that will stay in one rental the longest, ultimately decreasing turnover costs and directly increasing your ROI.

Call to Action: Ready to invest in North Carolina’s coastal rental market? Schedule a personalized market analysis with our team to explore the best opportunities in Jacksonville or Wilmington. Contact us today to get started!