SW Florida Rent Prices Drop as Frustrated Home Sellers Turn to Renting

Homeowners across Southwest Florida are facing a tough reality — after months of failing to sell their homes, many have turned to renting them out, only to face another setback.

According to Realtor.com, these owners, dubbed “accidental landlords,” are flooding the rental market, leading to a sharp decline in prices. RentCafe’s August analysis found Collier County leading the nation with an astonishing 275% year-over-year growth in new apartments, far outpacing every other metro area.

New Multi-Family Growth Rankings (2025)

Naples – 3,161 units (275%)
Birmingham, AL – 1,711 units (198.1%)
Riverside, CA – 6,096 units (154.1%)
Lincoln, NE – 2,120 units (107.4%)
Sioux Falls, SD – 2,325 units (100.1%)

Rents Plummet as Vacancies Rise
Lee County hasn’t added as many new apartments lately, but it’s still feeling the effects of a glut. New 2025 federal policies have reduced the number of renters from Canada and abroad, leaving vacancies more than double what they were in 2021.

Median rents have plunged across the region. In Collier County, the average two-bedroom dropped about 10% — from $1,740 in 2023 to $1,574 in 2025. In Lee County, prices fell nearly 15%, from $1,502 to $1,294, according to Apartment List.

High Mobility and Frequent Moves
RentCafe reports that Lee County renters are moving more often than ever. The share of residents who move frequently has jumped 26.7% in five years — the fifth-highest increase in the U.S. Nearly half of renters in the area change addresses every two years.

Top U.S. Metros for High Renter Mobility

Charleston, SC – 55%
McAllen, TX – 38%
Boise, ID – 48%
Austin, TX – 54%
Lee County, FL – 46%

October Brings a Market Shift
October traditionally signals the start of Southwest Florida’s real estate season as “For Sale” signs reappear before snowbirds return. Yet, this year, many sellers remain cautious after a record-high 2025 inventory and slower sales. Federal data shows that FHA mortgages for non-permanent residents — once a key buyer group — have nearly vanished, dropping from about 32,000 in 2024 to near zero this year.

Inventory Trends
Lee and Collier’s combined housing inventory peaked at 27,195 in April 2025 before falling to 19,111 last month, still higher than last year. Historically, listings begin to climb again in October ahead of the winter buying season.

Experts Warn of ‘Shadow Inventory’
Some sellers who pulled their homes off the market are waiting for prices to rebound. Appraiser Cindy Carroll warns that these “shadow listings” could flood the market if they return at inflated prices.

Naples broker Barrett Pastor agrees, saying, “Right now, what we’re experiencing are delusional sellers. It’s not the agents’ fault. Many homeowners still believe we’re in the COVID market and refuse to price realistically. That’s why homes are stacking up like a car wreck.”

Cape Coral Among the ‘Coldest’ Housing Markets
According to Construction Coverage and Redfin data, Cape Coral ranked as the coldest housing market among large and mid-size U.S. cities, with homes sitting on the market an average of 69 days. Naples’ average was even higher — 109 days, a 31% increase over last year.

Coldest U.S. City Markets (2025)

Cape Coral – 11.1
Amarillo, TX – 16.1
Jacksonville, FL – 16.6
Port St. Lucie, FL – 17.0
St. Petersburg, FL – 18.3

Southwest Florida: One of America’s Weakest Housing Regions
Fast Company and ResiClub both ranked Collier County among the nation’s softest markets, echoing analyst Lance Lambert’s assessment: “Based on my personal housing analysis, I consider Southwest Florida the weakest chunk of the U.S. housing market.”

Softest Markets in Zillow’s September Analysis

Jackson, Tennessee
Terre Haute, Indiana
Macon, Georgia
Lafayette, Indiana
Florence, South Carolina
Gulfport, Mississippi
Longview, Texas
Beaumont, Texas
Brownsville, Texas
Collier County, Florida

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