Cape Coral Housing Market Declared Worst in America Amid Price Declines

CAPE CORAL, Fla. — Cape Coral is facing one of the most challenging housing markets in the nation, with a recent report from The Wall Street Journal labeling it the worst in America. This marks a significant shift from previous trends when families flocked to the area.

According to Zillow, thousands of homes are for sale in Cape Coral, many of which are vacant or in foreclosure. Rising home prices, along with increased insurance and property taxes, coupled with the effects of recent hurricane seasons, have contributed to a decline in residents.

Data from the Cape Coral-Fort Myers area shows home prices have decreased by 11% in the past two years, with over half of homes seeing price cuts. For instance, a fully furnished home with a pool wasmarked down from $675,000 to $500,000, with the owner expecting further reductions.

Furthermore, Cape Coral has the highest percentage of underwater homeowners in the country, with nearly 8% of homeowners owing more on their mortgages than their properties are worth. Foreclosures are also a growing concern, with more than 100 foreclosure-related actions reported in May—an increase of nearly 50% from April, and a 60% rise from a year earlier, according to ATTOM Data.

Experts and real estate professionals have differing opinions on the causes of this downturn. While some believe it reflects broader economic issues, others are skeptical, leading to a mix of concerns and cautious optimism.

Local realtors are being contacted for more insights into the trends and challenges impacting Cape Coral’s housing market. As the region navigates these hurdles, its future remains uncertain.