Southwest Florida Market Update August 2025

The Southwest Florida real estate market continues to evolve in unique ways across Fort Myers, Naples, Cape Coral, and Lehigh Acres. While these cities share the same coastal sunshine and draw from the same buyer pool, their market conditions tell four very different stories. Understanding how they compare is valuable for both buyers and sellers, as well as for agents helping clients navigate these choices.

Naples: Luxury Price Leader with Buyer Leverage

Naples continues to set the pace at the top of the market, posting a median sales price of $750,000 and an average of $360 per square foot. Yet, with a 7.4-month supply of inventory and a median of 68 days on the market, Naples has become the most negotiable market of the four. Sellers are accepting an average of 94 percent of their list price, which highlights the leverage buyers currently have. For consumers, this means patience and negotiation can yield better terms, while agents should focus on premium marketing strategies, positioning homes as lifestyle investments, and encouraging sellers to consider creative concessions such as rate buydowns or staged reductions.

Fort Myers: Balance and Stability

Fort Myers offers a different story—a balanced market that has become the “value-for-amenities” play in Southwest Florida. With a median price of $428,931 and $233 per square foot, it provides strong value relative to Naples while maintaining proximity to downtown, hospitals, and the river district. Inventory sits at 5.9 months, the lowest among the four cities, and homes take about 60 days to sell. For buyers, this translates into a market that still offers choice but rewards decisive action. For sellers, Fort Myers is steady, but pricing aggressively from the start is critical. Realtors here win by moving quickly: launching professional photos, virtual tours, and targeted ads the moment a listing goes live.

Cape Coral: The High-Volume Giant

Cape Coral is the region’s inventory giant, with 2,607 active listings in August and 434 closings—the highest throughput of any city. The median sales price is $368,000 with $219 per square foot, showing strong affordability and variety. The six months of supply indicates a balanced but competitive environment. Buyers enjoy a wide selection, from canal homes to affordable inland builds, but sellers must work harder to stand out. Realtors can differentiate listings by highlighting boating access, insurance details, and neighborhood advantages like bridge clearance for canals. With so many options on the market, the properties that tell the clearest story—through photos, maps, and targeted messaging—rise above the noise.

Lehigh Acres: The Affordability Engine

Lehigh Acres stands apart as the most affordable market, with a median price of $318,000 and $208 per square foot. Despite having 6.4 months of supply, it is also the fastest-moving market, with homes selling in just 47 days on average. Sellers here achieve 98.2 percent of their asking price—proof that entry-level housing remains in high demand. For consumers, this means speed is essential, as well-priced homes attract offers quickly. For investors, Lehigh remains appealing due to its steady demand and affordability. Realtors in this space should focus on payment-based marketing, ensuring FHA and VA buyers can act quickly with pre-approvals in place.

What It All Means

These four cities together illustrate an upgrade ladder that still exists in Southwest Florida. Buyers may begin in Lehigh Acres, move up into Cape Coral, trade into Fort Myers for balance, and eventually reach Naples for luxury and lifestyle. The markets move at different speeds, with Naples showing the most negotiability and Lehigh the most urgency, while Cape Coral and Fort Myers offer balanced middle-ground options.

For consumers, the message is clear: Naples offers negotiating room, Fort Myers offers balance, Cape Coral offers choice, and Lehigh offers speed and value. For agents, the strategy must be tailored to each city—premium positioning in Naples, velocity in Fort Myers, segmentation in Cape Coral, and urgency-driven marketing in Lehigh. Each market has its own rhythm, and success depends on understanding not just the numbers, but the story behind them.