Southwest Florida Investment Property Market

Southwest Florida Investment Property Market Overview

The Southwest Florida market includes Cape Coral - Fort Myers Metropolitan Statistical Area (MSA) and the Punta Gorda MSA, which is made up of Lee and Charlotte counties. This is one of the smaller Roofstock markets with a population of approximately 810,000 residents. Given the proximity to the Gulf coast, average home prices range between $180,000 - $220,000 making them slightly higher than some other Florida markets.

Strong Yields and High Employment

Similar to other Florida markets, this region has experienced significant recovery since the recession with home values increasing over 50% since 20121. However, home values still remain approximately 25% below the prior peak and are expected to increase an additional 7-10% by 2019.

Another factor that makes Southwest Florida a great Single-Family Rental (SFR) investment market, is that it has strong gross rental yields relative to other U.S. markets. Gross yields in this region average 9.5-10.5%, which is above the national average of 9.2%2.

When it comes to underlying fundamentals that drive SFR investment returns, Southwest Florida is experiencing similar trends to the rest of the state. Employment numbers continue to rise and are higher than the average for the state of Florida, which should support household growth and ongoing rent increases.
  • Home price appreciation (HPA) and rent growth: Some of the strongest home price and rent growth forecasts in the nation
  • Low crime: Southwest Florida has significantly lower crime rates than the rest of Florida and the U.S.
  • Increasing population: The market has experienced a population increase of 6% since 2010, which is double the national average of 3% population growth3.
  • Limited large employers: Retail and healthcare are the two largest employment sectors in both Lee and Charlotte counties, which makes the market less diversified job-wise than other Florida metro areas4.
  • The beaches of Fort Myers & Sanibel are widely recognized and consistently ranked as a top U.S. destination for beach combing, shelling, kayaking and bird watching
  • Out of all the cities in Florida, Fort Myers has the highest total number of days with sun
  • 1 Zillow
  • 2 Zillow
  • 3 US Census Bureau
  • 4 Lee and Charlotte County Records

Real Estate Investment Insights

Investment Style: Balanced
While each property will differ, this market is likely to have properties that provide a blend of yield and appreciation.
Inventory:
Home Value *
$217,100
$189,400
National Avg
Home Value Growth (YoY)
11.5%
5.5%
National Avg
Rent **
$1,594
$1,403
National Avg
Source: Financial data from Zillow includes single family, condo & cooperative homes of Cape Coral-Fort Myers market, updated on 11/7/2016
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