Two Florida Gulf Coast cities separated by just one hour of driving distance are experiencing dramatically different real estate fortunes, highlighting the complex nature of regional housing markets. Cape Coral earned the unfortunate distinction of America’s worst housing market while nearby Naples continues attracting billionaire buyers with luxury properties reaching $70 million.
Cape Coral faces underwater homeowner crisis
The Wall Street Journal recently named Cape Coral as America’s worst housing market, citing that nearly 8% of homeowners owe more than their properties are worth. This underwater rate exceeds any other location in the country and reflects a dramatic reversal from pandemic-era growth.
Home prices in Cape Coral have declined for 12 of the past 13 months, creating financial stress for homeowners who purchased during peak pricing periods. The median home price had previously increased almost 75% to $419,000 during the early pandemic years when demand surged dramatically.
The current situation represents a significant correction from those unprecedented price increases. Housing values across Cape Coral, Fort Myers and surrounding areas experienced similar dramatic appreciation followed by the natural market pullback that has left many homeowners financially vulnerable.
Naples maintains luxury market momentum
Naples presents a starkly different real estate landscape, with brokers successfully selling condominiums for up to $70 million and developers marketing $35 million beachfront villas. The luxury market continues attracting wealthy buyers from New York to California who view Naples as a premier destination…