How Long Will Prolific Rent Growth Continue in Small South Florida Markets?
Three small Florida beach towns continued to log rent growth at the fastest clip in the nation, though that trend is fading. In mid-2021, two small Florida beach towns emerged as the nation’s top rent growth leaders. Naples-Immokalee-Marco Island and North Port-Sarasota-Bradenton pushed into the national top 10 for annual effective asking rent growth, largely based on demand flowing into these markets. During the early days of the COVID-19 pandemic, remote workers sought out smaller, more affordable locales with more lifestyle options. By August 2021, this trend also placed Cape Coral-Fort Myers in the national top 10 for annual rent growth. By December 2021, this trio had firmly secured the top three rent growth spots nationwide – a position they have successfully maintained since. While these markets continue to reign for rent growth, that trend does seem to be easing a bit, as annual rent growth has softened to 32.5% in Naples, 32.1% in Cape Coral and 26.6% in North Port, according to data from RealPage Market Analytics. Those are still stellar performances, but it’s not likely these small markets can maintain their national lead for much longer.