Real Estate Investment in Naples, Florida

White sand path leading toward Delnor Wiggins State Park at sunset.

Beautiful white sand beaches, tropical palm trees, eye-catching architecture – you’re falling in love with Naples, Florida, aren’t you? Whether you’re local or admiring from afar, it’s easy to understand why investors flock to the area. There’s clearly money to be made here, but is it worth your time? Have you already missed the boat? We’ve got the scoop on everything you need to know about real estate investment in Naples, Florida.

The team at Naples Relocation Experts prides ourselves on being comprehensive guides for all things Naples. We know our area, local businesses, and market better than any other real estate company. We truly believe in our community, so we love to partner with savvy investors to continue our city’s growth and progress.

In this article, we’ll go over some of the great reasons why real estate investment in Naples, Florida is the best option for your portfolio.

Is Naples, Florida a good place to invest in real estate?

Research conducted by the Wall Street Journal indicates YES! The Emerging Housing Markets Index from The Wall Street Journal and analyzes the 300 largest metropolitan areas across the country. In their recent 2022 report, Naples was ranked as the number one emerging real estate market. Who wouldn’t want to join an already winning team?

Aerial photo of Downtown Naples Florida shot with a drone
Aerial photo of Downtown Naples Florida

It’s no surprise that experts are recognizing Naples as a top emerging market. Here are some quick statistics indicating a prime market for real estate investors:

  • Currently a seller’s market, which means that there are more people looking to buy than there are homes available.
  • 386.9% increase in homes sold in August 2022 compared to 2021
  • Median closed price in August 2022 was $575,000, up 31% from 2021
  • On average, Naples homes sell after 30 days on the market

We know Naples, Florida is a great place for real estate investing because we’re investors ourselves! This is more than just a service we provide for our clients – it’s a passion of our own. Learn more in our article, “Our Investment Properties.”

Are house prices dropping in Naples, FL?

Reports indicate the exact opposite. In 2021, the median home price in the Naples area rose 20%!

A south florida home with shrubs and palm trees around a brick paver driveway leading up to a two story house.
A two-story home with side garages and palm trees.

Naples Area Board of REALTORS® lists the average median closed prices for each month so far in 2022 as:

  • January: $549,000 (+39% from 2021)
  • February: $550,000 (+38% from 2021)
  • March: $575,000 (+40% from 2021)
  • April: $599,000 (+36% from 2021)
  • May: $608,000 (+40% from 2021)
  • June: $604,000 (+32% from 2021)
  • July: $545,000 (+16% from 2021)
  • August: $575,000 (+31% from 2021)

The housing market in Naples is clearly trending upward, and the time is right to throw your hat in the ring! It’s essential to begin your real estate investment in Naples, Florida at the right time. Lucky for you, our team is here to guide you!

Is Naples, Florida in a real estate bubble?

With the overwhelming growth happening in our housing market, it’s natural to be asking, “Is Naples in a real estate bubble?” Or, more importantly, “If/when is the bubble going to pop?” This is a legitimate concern, especially for buyers that experienced the housing bubble and crash in the 2000s caused by foreclosures flooding the market and decreasing home values.

Colorful homes and palm trees in front of two story building with a blue sky in Naples
Condos and palm trees in front of a two-story building with a blue sky.

So, what makes this “bubble” different? For starters, recent growth is fueled by a genuine demand for homeownership. In the mid-2000s, banks were forcing demand by lowering lending standards and making qualifying for home loans or refinancing too easy. Now, mortgage companies require much higher standards to avoid repeating history.

Signs also show that the Naples housing market is regaining balance. According to an article from Naples Florida Weekly, “broker analysts are confident the Naples area housing market has reached a crossroad and is making its turn toward a balanced and healthy market.”

Our advice is to stop thinking of real estate as a metaphorical “bubble” and view it as peaks and valleys. It’s all about finding the right time and investment for your specific needs. To learn more about your opportunities and timetable for investing in Naples, Florida, contact us to book an appointment! Our experts will speak with you and address any questions or concerns directly.

Is buying rental property in Florida a good idea?

You’ve heard it before and you’ll hear it again: buying rental properties in Florida is almost always a great idea. After all, we’re consistently listed as one of the best states for real estate investing. Florida is a top tourist destination with great weather year-round. We have everything from busy cities and rural farmland to beachfront paradises and beyond. There’s something for everyone here!

A road going into a gated community of apartments and homes.

Owning rental property in Florida comes with a wealth of benefits:

  • Affordable rental property prices mean more consistent rentals and cash flow
  • Opportunities for different investment strategies, like vacation homes, short-term rentals, and long-term leases
  • Location is just as important as the property itself, so you have multiple factors working for you
  • Florida has a variety of property management companies to maintain and manage the property for you
  • The state experiences good job growth, always bringing new residents to the area

What is the best real estate investment in Florida?

One of the amazing things about real estate investment in Naples, Florida is that there are a variety of opportunities to choose from. Below are a few options you have.

Long-Term Residential Rentals: Long-term residential rental properties are homes, condos, apartments, etc. that you purchase with the intention of renting out to tenants over longer periods of time. As an investor, you make money on these types of properties by collecting rent from tenants and/or through appreciated property value if you decide to sell the property later on.

Vacation Rentals: This is a popular investment choice in Florida! For vacation rentals, investors purchase homes near active tourist destinations for visitors to rent out for short-term stays. Vacation rental sites like Airbnb or Vrbo have made it easier than ever to list out your rentals for potential visitors.

Flipping: Flipping a home means purchasing a “fixer-upper” and renovating it to sell for profit. This requires additional investments beyond the property price for construction, interior design, and other changes, but can be extremely rewarding. Make sure to educate yourself on the 50% rule for property improvements.

Commercial Real Estate: If you’re looking to go nonresidential, investors can purchase commercial property like warehouses, offices, retail stores, restaurants, and more. You can rent these locations out to local businesses or sell the property as value appreciates.

Raw Land: “Raw” or undeveloped land refers to vacant areas without any public utilities, buildings, or even pathways. Raw land investors can lease properties to farmers for agricultural purposes or hold onto it to sell at an appreciated value.

Naples, Florida offers investment opportunities for every type of investor. The best type of investment will depend on your specific budget, needs, and goals. Contact the Naples Relocation Experts team to discuss the best decision for you.

Homes for sale and other properties in Naples

Why is Naples, Florida a great place to invest?

Content middle-aged real estate investment couple walking on beach
A happy couple holding hands while walking on Naples Beach.

It all boils down to this: Naples, Florida is a great place to invest because it’s a great place to live and work. We were even named as one of Travel + Leisure Magazine’s Best Places to Move To. When you have a location as wonderful as ours, there will always be opportunity for growth. With a thriving community, unbeatable scenery, and a healthy real estate market, Naples is the perfect long-term option for your investment strategy.

Check out our article “Relocating and Investing in Naples, Florida” to learn more about how investing in Naples can help your money go further.

Investing is hard work, but you don’t have to figure it out on your own. With an experienced and confident team behind you, we can make your investment dreams come true! If you’re interested in real estate investment in Naples, Florida, call Naples Relocation Experts today. 

Drew Josephson
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