📊 Southwest Florida Rental Market Report – Q4 2025

If you're a property owner or renter in Southwest Florida, there's a lot to unpack in the latest numbers from the end of 2025. The national housing market may be sending mixed signals, but locally, we're seeing some very clear trends. In this quarterly rental market update, I’ll break down what’s happening nationally and what that means for us here in Fort Myers, Cape Coral, Lehigh Acres, Naples, and Port Charlotte—plus what our own Red Fortress Property Management data reveals.

🏠 Part 1: U.S. Real Estate Market Overview

Nationally, December 2025 marked a slight uptick in home sales at 334,000, the highest figure in roughly five years. But let’s not get too excited—it’s still below the 25-year average of 400,000 sales per month.

When it comes to housing inventory:

• Florida’s inventory increased 5% year over year

• Since pre-pandemic (2019), Florida now has 23% more homes for sale, thanks to high building activity

• Contrast that with the Northeast, where housing inventory is down as much as 40%

Home values in Southwest Florida, unfortunately, tell a different story. Cities like Punta Gorda, Cape Coral, Fort Myers, and Naples are leading the country in year-over-year price declines, some by as much as 13%.

🏢 Part 2: U.S. Multifamily Rental Trends

The multifamily sector has hit some uncomfortable lows:

• Occupancy has dipped to 93%, the lowest in 14 years

• New move-in rental rates are down 2%

• Blended rent growth (renewals + new leases) sits at a flat ~1–2%

Despite these national numbers, Red Fortress outperformed with a 30% turnover rate, meaning 70%+ of renters renewed—much higher than the national average of 39% turnover.

💬 "Stability in lease renewals helped us weather the storm far better than the national averages." — Michael McVety

🏡 Part 3: U.S. Single-Family Rental Trends

Single-family homes have shown a slightly better performance than multifamily units:

• Occupancy is steady, with minor seasonal fluctuations

• New move-in rents are down 1% for the first time in a full quarter in over a decade

• Blended rent growth is hovering at just 1%

Time on market is a growing concern:

• National average: 44+ days to lease

• The longest in six years, signaling slower absorption for rental homes

📍 Part 4: Southwest Florida Market Insights

Let’s zoom into our region—because in real estate, local always matters more.

✅ Local Highlights:

• Airport traffic is up 6%—a great sign for regional economic activity

• Unemployment rose by 1.7%, now sitting at 5.4%

• Single-family building permits fell 11%

• Sales volume increased 16%, but prices declined 2–7%

• Listings increased 2% from Dec 2024 to Dec 2025

📈 Year-Over-Year Rental Inventory Breakdown

I pulled detailed data on three-bedroom single-family homes—the most in-demand type of rental unit across every demographic. Here's what changed from December 2024 to December 2025:

Fort Myers:

• +226 more 3BR homes for rent

• +110 more under $2,000/month

• +38 more under $1,700/month

Cape Coral:

• +285 more under $2,000/month

• +133 more under $1,700/month

• +179 more 3BR homer for rent

Lehigh Acres:

• +299 more 3BR homes

• +302 more under $2000/month

• +132 more under $1,700/month

Port Charlotte:

• +126 more homes overall

• +52 more under $1,700/month

Naples:

• -23 total 3BR homes (only market with a year-over-year decline)

💡 Bottom Line: Every city except Naples saw a significant rise in affordable rental options.

📉 Quarter-Over-Quarter Inventory Shifts (Q4 vs. Q3 2025)

While inventory rose year over year, there’s some good news comparing Q3 to Q4 2025:

• Fort Myers: -86 fewer 3BR homes on market

• Cape Coral: -166 fewer 3 BR rental homes

• Naples: -98 fewer 3BR homes for rental

These drops suggest mild tightening, especially in Fort Myers and Cape Coral, which could start to benefit landlords if the trend continues.

💵 Rental Affordability Snapshot (Under $1,500/month)

Southwest Florida's lower-end rental options remained very stable month-over-month:

📬 Red Fortress Rental Applications: What We're Seeing

Here at Red Fortress Property Management:

• 2025 rental applications increased 10% over 2024

• 5 months saw year-over-year growth in applications

• Our improved marketing reach played a big role

🧠 Final Thoughts + What’s Next

If you're a landlord, you’ve likely felt the market soften over the past year. The good news? Inventory levels may be plateauing, and renter demand—while cautious—is still present. For renters, you continue to benefit from more choices and slightly softening rents.

Stay tuned:
📌 I’ll be sharing an exclusive breakdown of what I learned from the Federal Reserve luncheon—particularly around interest rate outlooks and employment trends.

📌 I’ll also be doing a video case study on my own rental property—how I priced it, how it performed, and what I learned.

📌 And finally, a data reveal: Where Red Fortress ranks nationally, based on a third-party deep-dive analysis.

❓ FAQ: Southwest Florida Rental Market

Q: Are rental prices going up or down in Southwest Florida?
A: Generally down. Inventory has increased and demand has softened, especially for 3-bedroom homes.

Q: What’s the average rent for a 3-bedroom home in Fort Myers or Cape Coral?
A: You’ll find many listings in the $1,700–$2,000/month range, with a growing number under $1,700.

Q: Is now a good time to invest in rental property?
A: Locally, inventory and price dips may open opportunities for long-term-minded investors.

Q: What’s the vacancy rate in the area?
A: While exact vacancy rates vary, increased inventory suggests a renter’s market for now.

Q: How long does it take to rent a property?
A: Nationally, it’s 44+ days on average. Locally, Red Fortress often beats that due to strategic marketing, pre-leasing and property readiness.