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Cape Coral Housing Market Is The Most Overvalued In America

Author mchilders

The current housing market is at its highest rate of unaffordability and is keeping possible homebuyers out of the market. With prices staying high and inventory not rising, this could mean even higher rates.

Florida Atlantic University determined the most overpriced housing markets in the nation by comparing the average expected home values to the average list prices. They compared across the 100 largest metro areas and finding the cities with the largest percent differences between the two.

The Cape Coral-Fort Myers Metro Housing Market

Based on September data, homebuyers in the Cape Coral-Fort Myers metro area are paying an average for $401,471 based on ZVHI price. This can compare to the expected price for a home in Cape Coral that is $273,529. This means buyers are paying 46.77 percent more than the home value price and the listing price. The prices are now unreasonable for an average family when Cape Coral was once known for cheap housing options.

Although Cape Coral ranked the top over priced housing market, many other Florida metro areas were not far behind. With a few cites separating- No. 4 Tampa (42.13%), N0. 5 Palm Bay (41.95%), No 6. Lakeland (41.07%) and No.7 North Port (40.70%) followed. This means that 8 out of 10 cities that were ranked the top ten most overvalued housing markets are found in Florida.

While one may wonder why Florida is one of the most overvalued areas, this can be explained in very simple terms. There is too much demand with not enough supply to keep up.

Florida has always experienced a “snowbird season”, but there has been a new wave of people moving to Florida. According to the United State Census Bureau, “The state of Florida saw the biggest increase in population in 2022 with 319,000 new residents.” The Bureau also reports that Florida was the fastest-growing state last year for the first time since 1957.

Even though Florida has easily earned the most overvalued state in the housing market, what is the cheapest? If you are looking for a steal we recommend to check out New Orleans, Louisiana. New Orleans lands in 100 place with -1.99 percent discount. One of the few markets where houses are selling at a discount.

Naples Florida Single Family Homes You Can Buy For Less Than $300,000

Seven years ago I bought my house for about $270K. Not a condo, it’s a stand alone single family house with 3 bedroom, 2 bath and a pool. The pool is screened and I live in a nice gated neighborhood with a great HOA. The latest estimates say my house is worth more than double that price now. Quite a bit more. I feel like a boomer with all my equity, but it’s only been 7 years. Naples single family homes have gotten pricey.

Home values in Southwest Florida have just gone straight up. So I was wondering, what could I get for the same amount of money today? Is there anything in Naples you can buy for less than $300,000? I’m not talking condos or a duplex, I’m talking a single family house. Maybe some yard, a driveway. Put up a picket fence. Kids and a dog. You know, the American Dream, right?

Affordable single family homes in Naples are pretty slim pickings. And with the rising interest rates heading towards 8% it seems like the longer you wait, the worse it gets. Rising rates and rising prices. It’s become pretty common for adult children to be moving back in with their parents. It’s not like you can afford to strike out on your own, get yourself a house, and settle down.

Actually, you can. You just need to really, really, really lower your expectations. And I’d stay current on your tetanus shots.

So get your Homestead exemption ready, let’s take a look at single family homes for sale in Naples for less than $300,000. The first one even comes with some acreage, if not much else.

  • 1975 Everglades Blvd S, - $250,000

    This place reminds me of the shack where Ray Finkle grew up in rural Collier County. It does come with over 2 1/2 acres. There are other houses in the area so I’m assuming there’s utilities. This lovely single family home was built in 1984 making me really wonder how it has survived all the hurricanes that have been through here since then. Just a few blocks down from Palmetto Elementary it might be a place to start a family. Plan for some 14 mile trips to the nearest hardware store as it appears this is a bit of a ‘fixer upper’.

    https://www.realtor.com/realestateandhomes-detail/1975-Everglades-Blvd-S_Naples_FL_34117_M60074-80207?from=srp-list-card

  • 5477 Martin St - $270,000

    This cozy 3 bed, 2 bath, 1100 square foot home located in Naples Manor is currently in foreclosure. A true handyman’s dream as the first thing you’ll need to do is replace the roof. And the ac. And try to figure out just what was going on in that bathroom. As a bonus, there’s no neighbors adjacent on the back of the house so the kids will have room to play. Once you remove all the debris, of course.

    https://www.realtor.com/realestateandhomes-detail/5477-Martin-St_Naples_FL_34113_M52327-09890?from=srp-list-card

  • 117 Audubon Rd - $275,000

    To start, this is in a 55+ community so that knocks out the starter home idea. But other than that, this place really doesn’t look too bad. A 2 bedroom, 2 bath, with docks and gulf access. HOA just $16 a month. I’m actually fans of the current residents because, as the pictures show, they clearly hate furniture. When there’s no couches or tables there’s so much more room for activities. We could make bunk beds!

    https://www.realtor.com/realestateandhomes-detail/117-Audubon-Rd_Naples_FL_34114_M58646-17135?from=srp-list-card

  • 2364 Bayside St - $275,000

    Is this a house or a shed? I think it may actually be a shed. This biggest selling point, as the realtor noted in all caps “NO HOA FEES OR RESTRICTIONS”. So, do whatever you want. The front door appears to be boarded, so it’s possible that the furniture comes with. That couch looks like it has stories. 

    https://www.realtor.com/realestateandhomes-detail/2364-Bayside-St_Naples_FL_34112_M64750-81880?from=srp-list-card

  • 46 Lanai Ct - $299,900

    Your last choice hits the upper range of our $300,000 limit. Located in Lely Tropical Estates this 2 bed/2 bath 915 square foot home looks well maintained. Aside from some questionable judgment on decor, this might be the best of the bunch. 

    https://www.realtor.com/realestateandhomes-detail/46-Lanai-Ct_Naples_FL_34112_M64858-28960?from=srp-list-card

  • And that's it.

    If you’re looking to move into a single family home in Naples with a $300,000 budget, those are your options. Don’t forget to also budget in the near 8% mortgage interest rate, which certainly eats into purchasing power.

    I spoke with my neighbor about this yesterday. How can we really expect working class people to move here when they can’t afford to live? The solution used to be, live in Lehigh and drive to work. But even Lehigh Acres is getting too expensive for regular people. And making everyone drive long commutes to work just further crowds our roads. What’s the answer?

 

 

 

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