Is Cape Coral Really the Worst Housing Market in America?
Recently, a headline from the Wall Street Journal made waves across Cape Coral:
"Cape Coral is the worst housing market in the U.S."
Naturally, it sparked heated debates in local Facebook groups and a flood of concern from both residents and future buyers. But is it actually true?
As full-time real estate professionals living and working in Cape Coral every day, we’re here to unpack the facts, share local insights, and explain why we’re not buying the doom-and-gloom narrative.
What the Data Really Says
The Wall Street Journal may be grabbing clicks, but the actual numbers tell a different story:
2,889 homes sold in Cape Coral between January and June 2025
Average days on market: 83
Homes sold for 97.5% of list price
These aren't crash numbers. They're signs of a market that's adjusting after rapid growth - not collapsing.
How Did We Get Here?
To understand the current slowdown, you have to rewind:
🌀 Hurricane Ian (Sept 2022) brought massive disruption to the area. Even homes without major damage faced delayed infrastructure, rising insurance costs, and FEMA complications.
🏚️ The 50% Rule from FEMA limited how much some homeowners could reinvest in repairs - causing many to sell “as-is.”
🏘️ A surge of investors, Airbnb owners, and second-home sellers hit the market after Ian, increasing inventory and skewing pricing stats.
🏗️ Rapid construction in 2021–2022 led to a brief oversupply, especially when demand paused after the storm.
The result? A temporary slump, not a collapse.
What the Headlines Miss
Many homes you see with multiple price drops were:
Bought at the peak in 2021–2022
Priced based on pre-hurricane assumptions
Sold without necessary repairs or permits
Meanwhile, well-maintained, properly priced homes are still selling, especially those with updated features, flood compliance, or great location.
Why Cape Coral Still Makes Sense
Cape Coral is still:
One of the most affordable waterfront communities in Florida
Minutes from Fort Myers Beach, Sanibel, and future redevelopments like the new Yacht Club & Bimini Square
A growing city on track for 400,000+ residents, with infrastructure and commerce to match
We’re seeing renewed interest from buyers nationwide - especially as Fort Myers Beach rebuilds into a luxury coastal destination.
So… Will Cape Coral Crash?
We don’t believe so.
This isn’t 2008. Homeowners have equity. Inventory is growing but not flooding the market. Prices have corrected slightly, but we’re seeing stabilization, not freefall.
Think of this as a smart window for buyers who want to enter Cape Coral before the next wave of growth.
Thinking About Buying or Selling?
Whether you're:
A buyer wondering if now is the right time
A seller trying to stand out in a shifting market
An investor weighing long-term potential
We’d love to help. We bring data, strategy, and a whole lot of real local experience.
📞 Schedule a consultation today
📧 info@thekolevgroup.com
🔗 thekolevgroup.com
Don’t let national headlines decide your local future.