by Mike Colpitts 
With a mix of affluent retirees, young professionals, second-home buyers and investors, the rich flock to Naples real estate. The influx of younger buyers are moving to Naples after remote workers chose the city as a destination during the pandemic seeking a more desirable work-life balance in a tropical paradise.
Naples median home price reached $865,000 in 2024, making the National Association of Realtors top 10 list. But almost immediately after hitting the big 10 list, home prices have been slowly declining.
The Naples real estate market in 2025 is still strong, though it’s experiencing some cooling after the heated pandemic years. Inventory levels have remained low, which keeps the demand for homes high as a rich migration of newcomers moves to Florida. However, the pace of price appreciation has slowed compared to the frenzy of 2021-2022.
Condominiums, which tend to be more affordable for buyers, have seen an even more significant shift, with the median sales price currently around $500,000.
Sales Volume and Trends in 2025
While home sales in Naples have slowed since their 2021 and 2022 peak, the Naples real estate market remains relatively active. The number of homes sold in Naples in Q1 of 2025 was down about 10% year-over-year, largely attributed to fewer available listings rather than a lack of demand. Buyers are still eager to purchase, but inventory constraints have led to fewer transactions.
The high-end market in Naples has remained resilient as a rich migration of northerners move south. The rich buyers seeking luxury homes (defined as homes priced at $2 million and above) have seen a slower rate of price decline, and some luxury neighborhoods like Port Royal and Aqualane Shores, where estates sell for $10-million and higher, are still posting sales at or above asking prices. These areas remain highly sought after, especially among affluent buyers from the northeast, including New York and New Jersey.
Rich Flock to Naples Real Estate
Home prices in Naples skyrocketed in 2021 and 2022, driven by low mortgage rates and a mass migration of newcomers seeking more space, warm weather, and a relaxed Florida lifestyle. The median home price in Naples increased by more than 20% between 2020 and 2022.
Since the Federal Reserve started raising interest rates in 2023, the pace of price appreciation has slowed, and in some Naples neighborhoods prices have even seen slight declines.
However, Naples remains one of the most expensive markets in Florida, and the lack of inventory for rich buyers, combined with demand is keeping prices relatively high compared to many other regions.
“We’re seeing fewer buyers at the extreme high end, but for homes priced under $1 million, we’re still seeing multiple offers,” said Patricia K. O’Leary, a Naples real estate expert. “The reality is that Naples remains one of the best real estate markets in Florida, and while prices have adjusted slightly, it’s still a competitive environment.”
Impact of Interest Rates and Inflation
Like much of the U.S., Naples real estate has been affected by rising interest rates, which have made mortgage borrowing more expensive. Higher rates have tempered buyer enthusiasm, particularly for first-time homebuyers and investors who rely on financing.
However, since Naples attracts rich cash buyers, the market has remained less affected by interest rates. Many home buyers are opting to pay for their property in cash.
The increase in inflation has also played a role in pushing up costs for new home construction and renovation, contributing to higher prices for both new construction and existing homes. Homebuilders in the area, such as those focusing on luxury homes and waterfront properties, have reported rising costs for materials and labor, which drives up home prices.
Demand from Retirees and Remote Workers
One of the most significant factors in Naples market resilience is its reputation as a top destination for retirees and snowbirds. Naples warm weather, upscale amenities, and proximity to the Gulf of Mexico attract those looking to escape harsh winters in northern states.
The ongoing popularity of remote work has brought younger professionals to the area, some of whom are choosing to relocate permanently.
Florida Power & Light reports an uptick in relocation inquiries recently from employees across the country. With the increase in telecommuting, workers no longer feel tethered to traditional office locations, and many are choosing Naples for its combination of lifestyle and business opportunities.