Southwest Florida Real Estate Second Quarter 2024 Report
As we progress through 2024, the residential real estate market in Southwest Florida continues to show signs of leveling off. Data from the first quarter of this year indicates that both single-family and condominium sales have been declining from their peak levels in 2022, with the most significant drops seen across our coastal counties. Adjusted for inflation, median prices for these properties have also been decreasing in most Southwest Florida counties.
Despite these price declines, affordability remains a major issue. The latest readings from the Household Affordability Index (HAI) reveal that the median family income in both Collier and Lee counties is still insufficient to purchase a median-priced residential property. Additionally, while real median rents have fallen from their 2023 highs, they are still notably higher than pre-COVID levels.
Commercial property sales have also slowed down during the first quarter of 2024. Interestingly, despite this slowdown, real median prices per square foot for retail and office properties have increased, while prices for entertainment properties have declined.
Key Findings from the Latest Report
- Residential Sales: From Q1 2023 to Q1 2024, there was a 14% decline in single-family home sales and a 31% decrease in condominium sales.
- Median Prices: Real median prices for single-family homes and condominiums fell by 5% and 3%, respectively, in Q1 2024 compared to the same period last year. Conversely, multi-family homes saw a 4% increase, and other residential properties rose by 2%.
- Housing Affordability Index (HAI): The HAI for all residential properties dropped across the coastal counties, with declines ranging from 7% to 12% from Q1 2023 to Q1 2024.
- Commercial Property Sales: Sales of commercial properties decreased across the board, with retail properties down by 22%, office properties by 11%, and entertainment properties by 33% compared to Q1 2023.
Source: Regional Economic Research Institute and the Lucas Institute for Real Estate Development and Finance.
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