The Pros & Cons of a Park Shore Investment Property

Naples, Florida is a go-to choice for Florida real estate investing. Rated the happiest city in the US four years in a row with incredible Florida tax benefits and rising home sale prices, it’s clear why families, investors, and developers alike are flocking to the Paradise Coast. But which Naples neighborhood is your best chance for a successful investment? If you’re looking for an amazing location with waterfront homes and high property values, then you could benefit from a Park Shore investment property.

As born-and-raised Neopolitans and experts on all things Naples real estate, Naples Relocation Experts is here to guide you through the process of real estate investing in Naples, FL. Our services go beyond buying and selling property. We’re relocation experts with intimate knowledge of the local area and successful real estate investors in our own right. We believe in building a better and brighter future for our local community, so we love to partner with savvy investors to further our city’s growth and progress.

If you’re interested in profiting off of Naples real estate, check out the pros and cons of purchasing a Park Shore investment property.

About Park Shore, Naples, FL

Park Shore is a beachfront neighborhood in the City of Naples, Florida, located between Pelican Bay and The Moorings. Developed in the 1970’s and 1980’s, it’s become a luxury community of homes and condos across 760 acres along the Gulf Coast. The area is known for its waterways, private Gulf-side boardwalk, and park-like setting. With close proximity to high-end shopping destinations and waterside restaurants, this neighborhood is ideal for taking full advantage of affluent coastal living.

Park Shore Demographics

• Population: 4,333
• Median Age: 62.5
• Average Household Income: $221,037
• Homeownership Rate: 82.75%
• Median Home Listing Price: $2.5 million

Pro: Amazing Location

One of the best benefits of living and investing in Park Shore is its central location in Naples, FL. The neighborhood provides easy and walkable access to incredible local shopping and dining establishments. Park Shore is nearby to some of the most popular Naples destinations, including Waterside Shops, Mercato, Fifth Avenue South, Third Street South, and the Village Shops on Venetian Bay.

“Park Shore is a good balance between Downtown Naples and North Naples,” described Drew Josephson, real estate agent and founder of Naples Relocation Experts.

Con: Higher Construction Costs

Construction costs have been rising nationwide over the last ten years, and the strain worsened amidst the pandemic. WINK News reported that the cost of building a home in Florida actually doubled post-pandemic. Just as developers were beginning to feel hopeful for 2023, Hurricane Ian hit Southwest Florida. The hurricane drove up labor costs and increased labor constraints, which is causing a drag on capital and returns for real estate investors.

These high construction costs are particularly impacting Park Shore, as the area experienced significant damage from Hurricane Ian. Due to the high demand in the Park Shore real estate market, build costs are higher than other neighborhoods. It can be expensive to find a good, quality builder in Park Shore.

Pro: Higher Property Values (and ROI)

Despite the higher build costs, investing in Park Shore is still worth the money as the market can accommodate increased housing prices. The larger sized properties and higher property values offer a greater return on investment (ROI) for real estate investors. If you’re looking for a Naples investment property that’s a step up from Naples Park, but aren’t interested in a mega luxury market like Port Royal, Park Shore is a great option. 

Here’s how Park Shore homes compare to the median listing prices of Naples’s most popular coastal neighborhoods as of June 2023, from least to most expensive (according to Realtor.com):

• Naples Park: $1.4 million
• Pelican Bay: $1.6 million
• Park Shore: $2.5 million
• Moorings: $2.7 million 
• Old Naples: $3 million
• Coquina Sands: $4.6 million
• Aqualane Shores: $15.5 million
• Port Royal: $19.9 million

Con: Temporary Risk of Inventory Spike

The risk of an influx of inventory is a new development for Park Shore and another one of the lingering effects of Hurricane Ian on Naples residents. Due to its close proximity to the water, several properties in the neighborhood were flooded during the hurricane. They needed to be renovated or completely rebuilt, so a lot of new spec properties are going up for sale. For the next 12 to 36 months, there’s expected to be more inventory on the market than normal. This means more competition for the area, which will impact housing prices. This is a short-term risk, but worth noting if you’re planning to list a new home in Park Shore in the near future.

However, there is an upside to the damage the hurricane caused in Park Shore:

“The reality is, when you look at it long-term, Hurricane Ian expedited the turnover of all the older homes in Park Shore. A lot of the properties that flooded were going to get knocked down anyway in the next three to six years,” explained Drew. “Now, it’s condensing that into a one to three year period.”

Pro: Waterfront Properties

Waterfront homes are considered a symbol of luxury and status, and that’s especially true for homebuyers, renters, and vacationers in Florida. The fact that there is limited waterfront real estate available only increases demand – which means increased cost. In fact, according to data from Zillow, waterfront homes are worth more than double the value of homes overall.

Naples, FL has several beachfront communities with access to waterfront properties, and Park Shore is no exception. Not only does Park Shore fall right along the coastline of the Gulf of Mexico, the neighborhood also wraps around Naples’ Inner Doctors Bay. That means investors will have oceanfront and bayfront properties to choose from when deciding on a Park Shore investment property.

Con: Higher Risk of Flood & Hurricane Damage

When you’re dealing with a coastal area like Park Shore, it’s important to understand the risks, especially when it comes to hurricanes and flood damage. As shown on Florida’s hurricane evacuation zone map, a majority of Park Shore is in Evacuation Zone A. This is considered the most vulnerable area and the first to be impacted in the event of a hurricane. You’ll also want to research your property’s designation on the FEMA Flood Map to determine how likely it is for your area to flood.

It’s important to keep these risks in mind when building or purchasing a Park Shore investment property. For example, Florida building code requires homes located within 1 mile of the coast to have impact windows. Also, while most standard homeowners insurance policies will cover some damage caused by hurricanes, it often doesn’t include flood damage or, in some areas, wind damage. You will likely need to buy a separate flood insurance policy and possibly a windstorm coverage policy.

Read our Florida Hurricane Preparedness Guide to learn more about what’s expected of property owners to prepare for hurricanes.

Pro: Absence of Tourists

If you’re looking for a home or long-term rental property that provides distance and privacy from the many vacationers in the Naples area, Park Shore is a great choice. The neighborhood falls within the limits of the City of Naples, which is subject to short-term rental restrictions. All non-HOA rentals within the City of Naples have a minimum 30-day lease requirement, meaning there’s no weekly or nightly vacation rentals allowed.

If you’re looking to build spec houses, renovate/flip properties, or lease for long-term rentals, this can be a great selling point for potential residents. With the short-term rental restrictions in place, your future buyers or renters can avoid dealing with loud and inconsiderate tourists.

Con: Short-Term Rental Restrictions

On the other hand, the short-term rental restrictions mean Park Shore is not an option if you’re looking to use your investment property for short-term or vacation rentals. Properties in Park Shore cannot be rented for less than a 30-day period and therefore don’t work for investors intending to use their home for sites like Airbnb or Vrbo.

If you’re looking for a Naples investment property to leverage for short-term rentals, we recommend Naples Park. Check out our blog “Naples Park, A Short Term Rental Haven in the Last Frontier” to learn more.

Pro: Public & Private Beach Access

Known as a beachfront community, it’s no surprise that Park Shore has convenient access to some of the best public beaches Naples has to offer. Park Shore offers public beach access to Seagate Beach / North Gulf Shore Beach, a local favorite and less crowded option for sunsets, fishing, boating, swimming, and more. The area is also home to Clam Pass Beach Park, an adventurous beach lined with sea grape trees and accessed by a long boardwalk surrounded by a mangrove forest and 35 acres of coastal habitat.

The true perk of being a Park Shore resident is the exclusive private access to Park Shore Beach Park. Located between the LaMer and Provence Condominiums, admittance to the park requires a validated Park Shore access card on your car, bike, or person. These passes are issued to residents only by the Park Shore Association.

Ready to find your Park Shore Investment Property?

If you’re ready to start your investing journey in Naples or, more specifically, Park Shore, then we can help. Our team works with investors of all levels of experience to answer questions, find properties and contractors, and discover the best way to invest in real estate.

Learn more about how Park Shore compares to other Naples neighborhoods by reading our blogs “The Pros & Cons Of A Naples Park Investment Property” and “Which Is A Better Place To Invest – Naples Park Or Park Shore?”

Contact Naples Relocation Experts today, and find the best Park Shore investment property for you.