If you are considering buying or selling a home, you will certainly want to do plenty of research in advance. In this article, our focus will be on the Fort Myers real estate market and investment opportunities in 2020. Fort Myers is overshadowed by much larger and hotter real estate markets in Florida like Miami and Orlando.
Yet it is smaller markets like the Fort Myers housing market that have more long-term potential. Let’s learn more about the city before sharing 10 reasons to invest in the Fort Myers real estate.
We’ll address everything from property values to ROI to the local economy, which will help you understand the way the local market moves in this area.
Fort Myers is located in western Florida. This city is rapidly growing but has yet to hit 100,000 people. However, the Fort Myers real estate market is not just Fort Myers; it includes the Cape Coral and suburbs like North Fort Myers.
In total, the metro area contains more than 700,000 people. Yet it retains its small town charm. Quality of life, the beach, and its economy continues to attract people here.
Is Fort Myers going to be one of the best markets for real estate investing in 2020? Let’s take a deep look at the latest Fort Myers housing market trends to come to a conclusion.
Fort Myers Real Estate Market Forecast 2020
The real estate data from Zillow shows that the current median home value in Fort Myers is $213,400. Currently, the Fort Myers is a buyer's market. The home prices have risen by 2% over the last year. And looking forward into the coming year, the Fort Myers real estate market forecast is that home prices will continue to rise by 1.6%.
Here is the Fort Myers, FL real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 1.6% till Sep 2020.
The median list price per square foot in Fort Myers is $148, which is lower than the Cape Coral-Fort Myers Metro average of $157. The median price of current listings in Fort Myers is $254,900 and the median price of homes that have been sold is $208,500.
Zillow reports that 14.7% of the listings in Fort Myers had a price cut in Sep 2019, which is a good thing for buyers. It shows sellers were willing to negotiate on prices as they were finding it more and more difficult to sell homes at asking prices.
The median rent price in Fort Myers is $1,650, which is lower than the Cape Coral-Fort Myers Metro median of $1,700.
Fort Myers Real Estate Market Trends
We shall now discuss some of the most recent housing trends in the Fort Myers area. Currently, Trulia has 7,408 resale and new homes for sale in Fort Myers, FL, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
The median price of sold homes in Fort Myers housing market is $215,000 and homes are selling for about $140/sqft. The avg. sales price of a 2 bedroom home in Fort Myers is $168,844 where as a one bedroom home can cost you $87,344.
In the past month, 541 homes have been sold in Fort Myers, Florida as reported by Redfin.com. The median price per square foot in Fort Myers has increased by 0.74% over the past year. In addition to houses in Fort Myers, there were also 1072 condos, 215 townhouses, and 43 multi-family units for sale in Fort Myers last month.
As per their real estate data, the Fort Myers housing market is somewhat competitive. Homes in Fort Myers receive 1 offers on average and sell in around 72 days. The average price of sold homes in Fort Myers was $231,000 last month, up 3.6% since last year.
The average sale price per square foot in Fort Myers is $136, up 0.37% since last year. Homes typically receive 1 offer. Homes sell for about 4% below list price and go pending in around 72 days. A hot listing in Fort Myers can sell for about 1% below list price and go pending in around 22 days.
Here is the latest Fort Myers housing market data for the month of Oct 2019 from Redfin.com.
Fort Myers Housing Market Trends in Oct 2019 |
|
| Median List Price | $255,000 |
| Avg. Sale / List | 96.20% |
| Median List $/Sq Ft | $150 |
| Avg. Number of Offers | 1 |
| Median Sale Price | $231,000 |
| Avg. Down Payment | 3.00% |
| Median Sale $/Sq Ft | $137 |
| Number of Homes Sold | 541 |
There are 4,274 homes for sale in Fort Myers, FL on Realtor.com. The new listings are 302. The asking price of Fort Myers single family homes can start from $47,000 and can go up to $15.9M for a luxury property in Southwest Florida.
Additionally, there are 895 rental properties for sale, and their rent prices range from $539 to $159,500 per month. The median rent in Fort Myers is $1,600. There are 387 new construction homes for sale in Fort Myers within a price range of $149,900 to $4.6M.
According to their statistics, in October 2019, Fort Myers housing market was a balanced market, which means there was a healthy balance of buyers and sellers in the market.
Ideally a buyer would prefer a sale to asking price ratio that’s closer to 90%. In Saint Petersburg, the sellers have held good leverage in these negotiations in the past month.
On an average, they could sold homes for 97.08% of the asking price. A seller would always prefer scenarios which can yield a ratio of 100% or higher.
The home prices in Fort Myers have been trending up 1.8% year-over-year. In October 2019, the median price of active listings in Fort Myers, FL was $248,500. The median listing price per square foot was $147. The median price of sold homes was $225,500.
On average, homes in Fort Myers, FL sell after 92 days on the market. The trend for median days on market in Fort Myers, FL has gone down since last month, and slightly up since last year. For more details, you can visit Realtor.com.
The median list price in Fort Myers is $269,650 on Movoto.com. According to their statistics, the median list price in Fort Myers was less than 1% change from October to November. Fort Myers's home resale inventories is 2,256, which increased 1 percent since October 2019.
The median list price per square foot in Fort Myers is $154. In October 2019 it was $153. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in November.
Fort Myers, FL Single & Multi-Family Homes Statistics
Following the real estate market decline in 2007 in the U.S., single family rental homes became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.
Single family rental properties have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.
U.S. single-family rental market has seen steady rent increases between 2010 and 2019. According to CoreLogic’s latest Single-Family Rent Index (SFRI), which analyzes single-family rent price changes nationally and among 20 metropolitan areas, it shows a national rent increase of 3% in April 2019, as compared to 2.8% in April 2018.
The average sales price of new homes sold in the U.S. fell by 1.6% year-over-year in July 2019, to $388,000, according to the U.S. Census Bureau. In fact, the median sales price of new homes sold fell by 4.8% to $312,800 over the same period.
For existing homes, the median price was up by 4.3% to $280,800 in July 2019 from a year earlier, according to the National Association of Realtors. July’s price increase marks the 89th consecutive month of year-over-year gains. Demand remains robust. During the year to July 2019, new and existing home sales increased by 4.3% and 2.5%, respectively.
As per the real estate company called Neigborhoodscout.com, the median house price in Fort Myers, FL is $161,051, which indicates that home prices in Fort Myers are near national average for all cities and towns in the United States.
Large apartments are the single most common housing type in Fort Myers, accounting for 43.73% of the city’s housing units. One or two bedroom apartments are the most common housing units in Fort Myers.
Other types of housing that are prevalent in Fort Myers include single-family detached homes, duplexes, homes converted to apartments and a few row houses. Fort Myers has a mixture of owner-occupied and renter-occupied housing.
After the great recession of 2008, renting a home has increased exponentially across the nation. There are currently over 136.57 million housing units in the U.S.
In 2018, the total number of homeowner households hit an all-time high of 76.2 million. 36.6% of households rent their homes and 64.4% buy their homes (2018 U.S. Census Bureau).
Currently, there are 1,977 single family homes for sale in Fort Myers, FL on Zillow. Additionally, there are 283 single family homes for rent in Fort Myers, FL.
Under potential listings, there are about 17 Foreclosed and 169 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
Fort Myers, FL Foreclosures And Bank Owned Homes Statistics
As per the Fort Myers foreclosure data by Zillow, the percent of delinquent mortgages in Fort Myers is 0.8%, which is lower than the national value of 1.1%.
With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth.
The percent of Fort Myers homeowners underwater on their mortgage is 6.9%, which is higher than Cape Coral-Fort Myers Metro at 6.2%.
| Total No. of Foreclosures in Fort Myers | 471 (RealtyTrac) |
| Homes for Sale in Fort Myers | 2,945 |
| Recently Sold | 5,930 |
| Median List Price | $225,000 (1% ⇓ vs Sep 2018) |
There are currently 471 properties in Fort Myers, FL that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 2,945.
In October 2019, the number of properties that received a foreclosure filing in Fort Myers, FL was 2% lower than the previous month and 7% lower than the same time last year.
Best Neighborhoods to Invest in Fort Myers Rental Real Estate
If you are looking to invest in the Fort Myers real estate, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability.
Desirability brings demand. Demand would raise the price of your Fort Myers rental real estate and you should be able flip it for a lump sum profit. When looking to invest in Fort Myers real estate, you need to find places where the expected property appreciation forecast is positive.
The running costs for owning and managing an Fort Myers rental property should be low. The neighborhoods in Fort Myers must be safe to live in and should have a low crime rate.
The neighborhoods should be close to basic amenities, public services and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties.
Fort Myers is a minimally walkable city in Lee County. There are 59 elementary schools, 34 middle schools, 30 high schools and 46 private & charter schools in Fort Myers, Florida. There are 66 neighborhoods in Fort Myers.
Some of the best neighborhoods in Fort Myers, Florida are Iona, Cypress Lake, Jacaranda, San Simeon, Paseo, Oakmont Village, Bridgetown at the Plantation, Whiskey Creek, Botanica Lakes, Pelican Preserve, Fort Myers Gulf Acres, Lehigh Estates, Downtown Fort Myers, Arborwood, Fort Myers Country Club, Heritage Palms, Buckingham, and McGregor.
Verandah has a median listing price of $389,500, making it the most expensive neighborhood. Cypress Lake is the most affordable neighborhood in Fort Myers, with a median listing price of $165,500.
Here are the best neighborhoods to invest in Fort Myers real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).
| 1 | 2nd St / Monroe St |
| 2 | Ortiz Ave / Colonial Blvd |
| 3 | Summerlin Rd / Matthew Dr |
| 4 | Mcgregor Blvd / Clifford St |
| 5 | S Tamiami Trl / Koreshan Blvd |
| 6 | Three Oaks |
| 7 | Mcgregor Blvd / Cajuput Cove |
| 8 | McGregor |
| 9 | Briarcliff Rd / S Pebble Ln |
| 10 | Edgewood Ave / Veronica S Shoemaker Blvd |
How is Real Estate Investing in Fort Myers, FL?
Now that you know where Fort Myers is, you probably want to know why we’re recommending it to real estate investors. Investing in real estate is touted as a great way to become wealthy. Should you invest in Fort Myers real estate?
If you want to find out whether Fort Myers real estate is a good investment or not, you need to drill deeper into local trends. The Fort Myers real estate trends will tell what the market holds for the year 2020. We have already discussed the Fort Myers housing market forecast for answers on why to put invest in this market.
Although, this article alone is not a comprehensive source to make a final investment decision for Fort Myers but we have collected ten evidence based positive things for those who are keen to invest in the Fort Myers real estate.
Investing in Fort Myers rental properties will fetch you good returns in the long term as the home prices in Fort Myers have been trending up year-over-year.
Let’s take a look at the number of positive things going on in the Fort Myers real estate market which can help investors who are keen to buy an investment property in this city.
We’ll focus on real reasons to invest in the Fort Myers real estate instead of giving you vague appeals to buy a house or an investment property because of general ambiance and mere promises of future growth.
1. Fort Myers Real Estate Market is Affordable
The Fort Myers real estate market is affordable by both Floridian and national standards. The median home price in the Fort Myers real estate market is 230,000 dollars. That makes a Fort Myers real estate investment property quite affordable, especially given that it is a popular beach tourism destination.
The ideal combination of affordable beach real estate and quality of life is why Fort Myers was ranked the best place to retire by US News and World Report.
2. The Abundance of Off-Market Real Estate Deals
Around a quarter of properties in the Fort Myers real estate market are vacant at any given time. Some are rented out to seasonal tourists, while others are occupied by retirees who flock here in winter. This means that there are many more opportunities for discounted properties than those that are listed.
For example, you’ll find more estate sales and distressed sellers who need to liquidate the property to pay for their nursing home bills than in a busy metro area like Miami.
3. The Large Fort Myers Multifamily Real Estate Sector
Roughly half of the residences for sale in the Fort Myers real estate market are condos. This makes beachfront property more affordable than it otherwise would, whether you’re a snowbird or an investor who wants to rent to snowbirds.
Another benefit of so many condos in the market is that it means a Fort Myers real estate investment in one condo or a whole building will appreciate better than in an area dominated by single family homes.
For landlords, buying condos over single family homes in the Fort Myers housing market has the added benefit of reduced maintenance requirements.
4. The Decent Return on Investment
You can expect a decent rate of return on a Fort Myers real estate investment property. Studios and one bedroom apartments rent for 700 dollars a month.
A two bedroom apartment rents for 900 dollars a month. Three and four bedroom apartments rent for more than 1200 dollars a month. A single family home with a yard and privacy can rent for somewhat more.
However, Fort Myers is a very stable real estate market. Property appreciation has run 1 to 2 percent a year for several years and projected to be 1.6 percent in 2020.
5. The Good Overall Value
The Fort Myers housing market has several points in its favor that result in it providing a better overall value than many expect. For example, more than forty percent of homes were built since 2000.
This means the average investment property will have lower maintenance requirements than properties in older, more established communities.
Another interesting investing niche would be mobile homes. Around two percent of homes in the Fort Myers housing market are mobile homes.
They are rented out to both people working in the low paying service industry and tourists who can’t afford something more.
6. The Economics that Drive Renters
More than half of the population in the Fort Myers real estate market rents. This is unusually high given the local real estate prices for several reasons.
One is that nearly a quarter of homes are vacant, because so many people own vacation and seasonal homes in the area. That drives up rental rates for the remaining properties.
Another is that seasonal residents and tourists drive up rental rates on a Fort Myers real estate investment property. A third factor driving the large rental market is the average pay rate versus property prices.
The average income in the area is 23,000 dollars a year, about 5,000 dollars less than the national average. Yet home prices are in line with the national average. This means many residents in the Fort Myers real estate market are priced out – they have to rent.
7. The Low Tax Rates
Florida is famous for not having an income tax. However, it has a low overall tax burden, so it doesn’t have the high property taxes to make up for the lack of an income tax.
Property taxes in Florida average 0.9 percent, though the tax rate on a Fort Myers real estate investment property will be higher since you don’t qualify for a homestead exemption.
Yet you’ll still end up below the 1.1 percent average property tax rate for the country. They make up for it in higher sales taxes.
8. The Lower Insurance Rates
Every home should have homeowners insurance. One point in favor of the Fort Myers housing market is that it has much lower insurance rates than eastern Florida.
This is because eastern Florida is hit with many more hurricanes. The only cheaper option is more affordable inland communities. On the other hand, the Fort Myers real estate investment property is worth more.
9. The Owner Friendly Legal Climate
States can favor landlords or tenants by a wide margin, while some states are a true mix. Florida is notable for being consistently favorable toward property owners.
The state passed a law years ago prohibiting rent control, ensuring you don’t face city regulations that limit how much you can raise rent.
Florida took things one step further in 2018 and banned cities from passing mandatory inclusionary zoning ordinances, city laws that forced developers to have so many affordable units per development.
Cities may say that landlords cannot discriminate against people with Section 8 vouchers, but they cannot force property owners to join the program, so the issue is often moot.
10. The Short Term Fort Myers Rental Market
Fort Myers doesn’t give property owners unlimited rights to rent out properties to tourists. However, they do permit short term rentals in certain cases, and that’s better than the metro areas that nearly outlawed it like NYC.
Short term rentals must be registered with the city, and you must pay the same bed tax that hotels do. Short term rentals in residential single family homes are almost always grandfathered in, but you can rent out condos in tourist districts without any problem.
Investing in Fort Myers Real Estate: The Conclusion
Maybe you have done a bit of real estate investing in Fort Myers, FL but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold.
Fort Myers is often written off as a cheaper version of Miami. Yet it offers affordable real estate, strong rental rates, and a favorable legal and tax climate for property owners.
A good cash flow from Fort Myers rental properties means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.
Therefore, finding a good Fort Myers real estate investment opportunity would be a key to your success. If you invest wisely in Fort Myers rental real estate, you could secure your future.
If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate. Most investors naturally gravitate to residential property investment.
When looking for the best real estate investments in Fort Myers you should focus on neighborhoods with relatively high population density and employment growth.
Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing locally in the Fort Myers real estate market.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process.
They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing and interest rates.
NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
The aim of this article was to educate investors who are keen to invest in Fort Myers real estate in 2019. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.
Other Best Places To Invest in Real Estate in 2020
Another fairly good market in Florida to choose for real estate investment is St. St. Petersburg. The Tampa area is one of the hottest real estate markets in the United States. The city of St. Petersburg benefits from this while having a few unique benefits of its own. Currently, it is a seller’s market market with high rates of return.
The St. Petersburg real estate market is a mix of single family homes, apartments and condos. The city’s location on the beach and steady stream of visitors has resulted in it becoming a destination for snowbirds, retirees who visit in the winter.
This also means that you could pick up a condo from non-resident owners who can’t return for health reasons, died, or need the money. On the other hand, snowbirds drive up rental rates and property values.
The other best place to invest in real estate is Missoula, MT. A number of factors combine to make the case for Missoula real estate investment over investing in other parts of the region. It is a stable real estate market with decent rates of return.
Demand for properties in the Missoula housing market is greater than supply. The area hasn’t seen new construction at the rate necessary to meet demand. That’s why home prices hit a record price of 300,000 dollars in August, 2018. They’ve remained in that ballpark ever since.
*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
References:
Insurance https://www.insurance.com/home-and-renters-insurance/coverage/florida-homeowners-insurance
Taxes https://taxfoundation.org/state/florida/ https://www.bestplaces.net/economy/city/florida/fort_myers
Property owner friendly https://www.avail.co/education/laws/florida-landlord-tenant-law/amp https://psmag.com/social-justice/red-state-governments-ban-blue-cities-from-passing-bills-to-make-housing-affordable
Affordable real estate https://realestate.usnews.com/places/florida/fort-myers
Economics that drive renters https://www.neighborhoodscout.com/fl/fort-myers/real-estate
About Fort Myers
https://en.wikipedia.org/wiki/Fort_Myers,_Florida https://en.wikipedia.org/wiki/List_of_metropolitan_areas_of_Florida
Large multi-family sector https://www.coldwellbanker.com/for-sale-homes/Fort-Myers-FL-3291c/view_local-market-trends
Short term rentals https://www.fortmyersbeachfl.gov/1024/Short-Term-Rental https://www.useguestbook.com/short-term-rental-regulations/short-term-rental-regulations-in-fort-meyers-florida-cape-coral/
Up-To-Date Market Prices, Trends & Forecasts
https://www.movoto.com/fort-myers-fl/market-trends/
https://www.zillow.com/fort-myers-fl/home-values/
https://www.redfin.com/city/6208/FL/Fort-Myers/housing-market
https://www.realtor.com/realestateandhomes-search/Fort-Myers_FL/overview
https://www.realtytrac.com/statsandtrends/fl/lee-county/fort-myers/
https://www.fortunebuilders.com/fort-myers-real-estate-and-market-trends/
