There are few things more competitive than today’s home buying market… One of which is the rental market.
Rent Averages
In the past 2 years, the average monthly rent across Southwest Florida has increased by over 93% across the board. More specifically, annual rent prices rose by an average of 86%, while short-term rent prices rose by a whopping 144%.
In that same period (since early 2020), the number of new rental listings per month has decreased by 122%. Until the last quarter of 2020, we were seeing an average of about 1,000 new rental listings per month. So far in 2022, however, we’ve been seeing an average of just 450 new rentals per month.
The Southwest Florida cities most affected are Naples and Bonita Springs, with rent prices rising by averages of 144% and 131%, respectively. Trailing these are Estero, with a 49% increase, and Fort Myers/Fort Myers Beach with a 40% increase.
The Bonita Springs rental market was, by far, the most affected by the rental inventory crisis. This Southwest Florida city saw a jaw-dropping 173% decrease in new rental listings since early 2020.
Sales Averages (Residential Properties)
In this same time frame, average sale prices for single-family residential units (houses, condos, villas, townhomes, etc.) rose by 41%. Estero led this race with a 59% increase, followed by Bonita Springs at 57%, Fort Myers/Fort Myers Beach at 55%, and Naples, surprisingly, at just 40%.
Across all of these cities, the average sale price has gone from $473,315 in March 0f 2020 to $669,692 currently.
Sales Averages (Multi-Family Units)
Out of all the housing sectors listed above, multi-family units (duplexes, triplexes, and quadruplexes), saw the smallest price increases over the past two years. On average, multi-family sale prices increased by 35%, from $355,193 to $478,502.
Time to Invest!
While the barrier to real estate investing might be slightly higher now, the statistics above prove that there has never been a better time to purchase an income property in Southwest Florida. Whether it be a condo, house, or multi-family unit, the staggering rent prices lately will ensure that your investment cash-flows at a higher rate than any time in recent history.
If you have questions about purchasing an income property or adding to your Southwest Florida portfolio, call us today at (239) 292-2317. We look forward to helping you put your hard-earned money to work!
