SWFL Real Estate: Second Quarter 2025 Report
May 30, 2025 / RERI Research Team
Southwest Florida Real Estate Second Quarter 2025 Report
During the first quarter of 2025, the residential market in Southwest Florida continued to experience notable changes reflecting ongoing adjustments in the post-pandemic and post-hurricane housing landscape, as evidenced by the latest data available. Single-family home sales in the region have come down over the past quarters and remain below their 2022 apex, with declines primarily concentrated in the coastal counties. Single-family and condominium real median prices in the region also continued to fall, with declines observed across all Southwest Florida counties. The percentage of total housing units that were actively listed rose year-over-year in almost all counties.
Housing affordability showed mixed trends. Following declines in median prices, affordability showed modest improvement in Lee and Charlotte counties in Q1 2025, but declined 4 percent in Collier County, which continues to face the greatest affordability challenges amongst the three coastal counties. When looking at only single-family homes, the Home Affordability Index (HAI) increased year-over-year in Lee and Charlotte but decreased by 2 percent in Collier. Moreover, real median rents for all three coastal counties continued to fall from their 2023 peaks but still remain elevated compared to pre-Covid values.
In the commercial sector, property sales and real median prices per square foot continued to decline across almost all property types during Q1 2025, with entertainment property prices notably increasing real median prices per square foot by 30 percent compared to last year.
Other findings from the latest report include:
- Residential property sales for all types declined from Q1 2024 to Q1 2025, including an 11 percent decline in single-family home sales and a 39 percent decrease in condominium sales.
- Real median prices for single-family homes and condominiums in Southwest Florida also declined in Q1 2025, falling 11 percent and 10 percent, respectively, from Q1 2024.
- The Housing Affordability Index (HAI) for all residential properties showed mixed performance across the coastal counties in Q1 2025, housing affordability remains a challenge in Collier County, with an HAI of 0.85 while Lee County (1.04) and Charlotte County (1.10) maintained HAI values above 1.0.
- All major commercial property types experienced declines in sales in Q1 2025. Retail property sales dropped 48 percent, office sales declined by 13 percent, and entertainment property transactions fell by 56 percent compared to Q1 2024.
Downloads:
Southwest Florida Real Estate Second Quarter 2025 Report
Acknowledgments:
This report is the product of a collaborative effort between the Regional Economic Research Institute and the Lucas Institute for Real Estate Development and Finance. We would like to thank the various property appraiser offices for providing the data that made this analysis possible.
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