How Fort Myers, Cape Coral & Beyond Are Really Performing (And What Landlords Should Know)
By Michael McVety, President – Red Fortress Property Management
As we wrap up the second quarter of 2025, I’m back with your deep-dive rental market analysis for Southwest Florida. From national market shifts to hyperlocal changes in Fort Myers, Cape Coral, Lehigh Acres, Port Charlotte, and Naples, this report is built to help landlords, property investors, and real estate professionals understand what’s really going on.
And I’ll be blunt — it's a tough market. But it's also full of opportunity if you know how to read the signs.
🔍 National Market Overview: What Landlords Must Watch
Before diving into local trends, let’s start with the broader U.S. rental landscape. Why? Because national trends often trickle down — and sometimes conflict — with what’s happening locally.
Multifamily Sector
Occupancy rate at a 14-year low: Currently hovering around 93.0–93.5%.
Rising concessions: Landlords are offering more perks just to fill units.
Negative new move-in rents: 1 in 6 new leases are signed below the prior rent price.
Single-Family Rentals
Oversupply concerns: Seasonally adjusted data shows supply outpacing demand.
Days on Market (DOM): National average is now 40 days, the highest in years.
Lease renewal growth: Flatlining at just 2% — one of the lowest rates in over a decade.
📉 Southwest Florida Rental Market – The Local Breakdown
Now, let’s zoom into the numbers that matter most to property owners in our region.
1. Inventory Surplus – Especially in 3-Bedroom Rentals
3-bedrooms are the benchmark — they appeal to families, roommates, and singles alike.
Fort Myers
Jumped from 515 to 697 active 3BR rentals in just one month.
24 units priced at $1,700/month or less — a key indicator of market pressure.
Cape Coral
Over 1,300 active 3BR listings, with 400 under $2,000/month.
Significant drop in lease velocity due to growing competition.
Lehigh Acres
Smaller numbers, but the same trend: high supply, lower price points.
Nearly half of all listings are under $2,000/month.
Port Charlotte
Historically stable, but now climbing rapidly.
378 3BR homes available in June — highest in over 6 months.
Naples
Steady inventory, but almost no listings under $2,000.
Price resistance remains high, keeping low-income renters out of the market.
2. How Low Can You Go? The Bottom of the Market
We analyzed how many entire rental homes (not rooms) were priced at $1,500/month or less:
| City | May 2025 | June 2025 | Lowest Rent |
|---|---|---|---|
| Naples | 5 | 5 | $1,450 |
| Bonita Springs | 2 | 2 | $1,500 |
| Fort Myers | 69 | 60 | $900 |
| Cape Coral | 46 | 54 | $850 |
| Lehigh Acres | 23 | 27 | $950 |
| Port Charlotte | 24 | 22 | $950 |
Key Insight: Fort Myers and Cape Coral offer the most affordability, but also face the toughest competition. If you're priced above $2,000, your property may sit vacant for weeks — or months.
3. Price Declines & Value Trends
According to Florida Gulf Coast University data:
Median sale prices down 10–19% year over year.
Active residential listings up 33%, further driving down demand.
Yet compared to 2020, property values are still 50% higher — perspective is everything.
4. Local Economic Health: Still Strong (For Now)
Despite rental struggles, the economic fundamentals in Florida remain resilient:
Lee County unemployment: 3.8% (vs. 4.1% nationally)
Fuel prices: Down to $2.85/gallon in Fort Myers
Consumer sentiment in Florida: Still optimistic
State budget: Trimmed by $3B despite 20% more residents than New York
📢 "When you compare Florida’s budget with New York’s — 20% more people, 50% less spending — it’s easy to see why the economic engine here keeps turning." — Michael McVety
🔄 Rent Strategy in a Down Market: What Landlords Should Do
We recently hosted a Zoom workshop on “How to Rent in a Down Market”, and the strategies still apply today. Here’s the fast version:
1. Reassess pricing every 7–10 days
If your property’s been listed more than 2 weeks with no bites, you’re overpriced.
2. Highlight affordability and value
Promote 3BR homes under $2,000 — they’re the sweet spot for many renters.
3. Offer limited-time concessions
Rent discounts, or small upgrades can make the difference.
4. Focus on lease renewal retention
Preventing turnover saves you more than chasing higher rent. Consider modest increases (2–3%) to encourage tenants to stay or keep the same rent.
📊 What's Next for Q3 and Beyond?
We’ll be tracking:
Construction slowdowns or surges in Fort Myers, Cape Coral, and Lehigh Acres
New rental housing developments and how they’ll affect inventory
Legislation and insurance updates impacting property owners
If you’re wondering whether to buy investment property now, the short answer is:
Yes — if you plan long-term. Prices are low, competition is high, and rental rates will rise again once inventory tightens.
❓ FAQ – Southwest Florida Landlord Edition
Q: Should I lower my rent or wait it out?
A: Lower it if you're sitting over 14 days with no traction. The holding cost adds up fast.
Q: Are prices going to keep falling?
A: Possibly short-term, but Florida’s strong economic base and population growth will stabilize prices in over a year.
Q: How do I compete with so many other rentals?
A: Price, presentation, and responsiveness. Clean, updated, well-marketed homes still move — even now.
Q: Should I switch to month-to-month leases?
A: No, not unless it fits your strategy. Longer leases still give more stability in uncertain markets.
💡 Final Thoughts from Michael McVety
"We’re not in 2008 territory — but it’s not 2021 either. The landlords who adapt, price smartly, and stay informed will be the ones who weather this and come out ahead."
Have questions? Want help renting your property in this challenging market?
📩 Email me directly at mike@redfortresspm.com or visit redfortresspm.com
Next up: In our Q3 update, we’ll cover local construction data, permitting slowdowns, and how that might shift the rental landscape in the next 6–12 months.
Stay tuned — and stay proactive.
