Florida

Affluent Second-Home Buyers Are Back in Droves

Lesley Deutch photo

Lesley Deutch

February 17, 2014

The Naples housing market is firing on all cylinders this year, with strong demand from retirees, second-home buyers, and snowbirds. Here are some indicators:

  • Prices continue to rise approximately 0.5% per month, according to our Burns Home Value Index™.
 
  • Incentives/discounts are minimal, based on my tour of almost every community in the market.
 
  • Employment growth of 7.7% year over year in December outpaces all other major MSAs in the country.
 
  • Minimal resale inventory is on the market, as months of supply declined to 4.0 months from 6.4 months one year ago.
 
  • Visitors are back! Southwest Florida International Airport deplanements rose 3% year over year in 2013—- the largest increase since 2007. We see a strong correlation between airport traffic and home prices in Naples, as many visitors to Naples eventually buy a house for retirement or a second home.
 

All of these indicators bode well for the Naples housing market in the near term and for the second-home and luxury markets for the rest of year. We are watching carefully for signs of overheating, but today the market remains one of the healthiest in the country.

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About The Author

Lesley Deutch photo
Lesley Deutch
Managing Principal
Lesley has more than 25 years of experience consulting with executives in the finance and real estate industries throughout North America. She works across a wide spectrum of industries including apartments, for-sale housing, high-rise development, urban projects, single-family rental, building products, and commercial developments.

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