by Mike Colpitts 
The vacation home market in Southwest Florida, including Fort Myers, Naples, and Fort Myers Beach has experienced a jump in home sales. The second home market has long been a magnet for seasonal residents seeking warmer weather in the Florida sunshine.
Northern transplants, retirees, and investors looking for the good life move to the region, which offers a blend of tropical allure, upscale amenities, and relatively favorable property values. More new homeowners are moving to the area as full-time residents.
However, the vacation home market is experiencing shifts driven by economic factors, including higher mortgage rates, climate risks and evolving buyer preferences. Declining home prices in the second home market have also contributed to better buying conditions for those seeking to purchase property. The inventory of homes and condos listed on the market for sale has increased largely and is expected to remain bloated for some time.
As prices have declined, sales of single family homes have increased nearly 50% month over month. The jump in vacation home sales is attracting significant interest.
Vacation Homes in Naples: A Luxury Destination
Naples is the crown jewel of Southwest Florida’s second home market. As of December 2024, the median sales price for homes in Naples stood at $600,000, reflecting a 4% decrease from the previous year. Despite the dip, closed and pending sales increased, indicating sustained demand.
The luxury segment, particularly in beachfront and golf course communities, is still attracting affluent home buyers, mainly from the east coast region of the U.S. However, inventory levels have risen sharply, with a 35.7% increase year-over-year in December 2024, leading to a longer time on the market and more price adjustments
Fort Myers: A More Accessible Option
Fort Myers offers a more affordable entry point into the Southwest Florida market. The median sale price for single-family homes is approximately $350,000, making it an attractive option for buyers seeking vacation homes without the premium costs of Naples.
Fort Myers estimated population is 109,595 as of 2024, which is nearly five times the population of Naples. The region is gaining new residents every year, despite the loss of residents in Florida in other parts of the state. More high-net-worth individuals are making Naples home, with roughly 12,078 millionaire households, according to data from the state of Florida.
However, Southwest Florida faces challenges related to climate risks and insurance costs. Experts have warned that areas like Fort Myers are particularly vulnerable to climate-related financial impacts, including higher home insurance costs. However, Florida has experienced booms and busts in real estate for 100 years, much of it driven by the impact of hurricanes and economic changes.
Fort Myers Beach: A Resilient Resort Market
Fort Myers Beach has demonstrated resilience, especially in the vacation rental market. Despite challenges, the area remains a popular destination for short-term rentals, attracting tourists and investors alike. The market’s adaptability and appeal makes it a viable option for second home buyers focused on rental income potential.
The increase in inventory across Southwest Florida provides buyers with more options but also indicates a shift towards a more balanced market. In Naples inventory levels rose, leading to a longer time on the market for listings and more price adjustments. The shift to a buyers market is benefitting buyers, as sellers adjust expectations and lower pricing to sell.
Looking ahead, the second home vacation market in Southwest Florida is expected to continue evolving. While Naples remains a luxury destination, the increased inventory and pricing adjustments creates opportunities for discerning buyers. Fort Myers Beach’s resilience and rental potential make it a viable option for investors.
Buyers and investors should conduct thorough due diligence, considering factors such as property condition, insurance requirements, and long-term market trends. Engaging with a local certified resort specialist like Mike Colpitts can provide valuable insights and guidance navigating the complexities of the Southwest Florida second home market.