🏡 Cape Coral Real Estate: Crashing Market or Booming City? Here’s the Truth.

If you saw the recent headline saying Cape Coral has “the worst housing market in America,” you might’ve panicked a little - especially if you live here or are thinking of buying a home.

Then, just a few weeks later, you might’ve seen another headline saying Cape Coral is one of the fastest-growing cities in the country.

So… which is it?
Is Cape Coral falling apart or thriving?

Let’s break it down together using facts, plain language, and real examples so you can walk away feeling informed - not confused.

📰 The Scary Headline: “The Worst Housing Market in America”

Published by: The Wall Street Journal
Date: June 30, 2025
Headline: “The Worst Housing Market in America Is Now Florida’s Cape Coral”
📎 WSJ article link

This article looked at short-term trends - and here’s what it said:

• Home values dropped 11% over the last two years

• Prices declined in 12 out of the past 13 months

• Roughly 8% of homeowners owe more than their homes are worth

• Homes are sitting longer on the market

• More sellers are having to lower their prices

What this feels like to the average person:
If you bought a house during the 2021 peak and now see prices adjusting, it can feel like you lost money - even if you didn’t actually lose anything unless you sold at a lower price. The market got quieter, and that feels different.

But here’s the problem with that article: it only looked at recent changes, and it didn’t explain what’s happening in the bigger picture.

🧾 The Local Response: “This Is a Market Correction, Not a Collapse.”

Published by: Royal Palm Coast Realtor® Association (RPCRA) & Florida Gulf Coast MLS
Date: July 3, 2025
📎 Official rebuttal here

Local experts stepped in to clear things up. And they brought real numbers with them.

Here’s what they showed:

📊 Cape Coral, Then vs. Now (2021 vs. 2025)

Translation (in normal people terms):

• Prices haven’t crashed - they’ve actually held steady compared to pre-pandemic times.

• There are more homes for sale, which means buyers finally have choices again (no more bidding wars on every house).

• Most homes are still selling very close to asking price.

• Foreclosures are rare, which is a good sign. If things were truly “crashing,” we’d be seeing tons of distressed sales - we’re not.

“This is a natural correction, not a collapse.” – RPCRA

Think of it like this:
After sprinting full speed during the pandemic housing boom, Cape Coral is catching its breath. That doesn’t mean it’s falling down - it means it’s pacing itself for long-term health.

🚀 Then Came the Boomtown News: Cape Coral Ranks #5 in the Nation for Growth

Published by: LendingTree
Date: July 22, 2025
📎 Boomtown Study
📎 News-Press summary article

While national headlines said Cape Coral was struggling, a major financial report ranked Cape Coral as the 5th fastest-growing metro area in the country.

💼 What LendingTree Found:

• #5 Boomtown Overall

• #2 in Business and Economic Growth

• +12.3% GDP growth

• +29.6% increase in new businesses

• Strong housing unit growth and population expansion

What this means:
People are still moving here, starting businesses here, and spending money here. That’s not what a dying city looks like - it’s what a booming city looks like.

💡 Let’s Get Real: What’s Actually Going On?

The market feels slower than it did during the pandemic - and that’s true.

But think back to 2021 and 2022:

• Homes were selling in hours, often with 20+ offers

• Buyers were waiving inspections, offering $30K over asking, and feeling desperate

• Sellers were naming their price and getting it - sometimes more

That wasn’t normal. It was unsustainable. And everyone - from real estate agents to buyers to appraisers - knew it.

Today, we’re just moving into something more balanced.

🧠 So, What Should YOU Take Away from All This?

Here’s what’s really happening in Cape Coral:

✅ True:

• The market has cooled since 2021. There’s more inventory. Prices have adjusted slightly.

• Some homeowners who bought at the very peak may have seen their equity shrink temporarily.

✅ Also True:

• Prices today are still higher than 2021 in most cases.

• Cape Coral is economically healthy, with low foreclosure rates and business growth.

• We are not seeing signs of a crash, like mass defaults, sharp price drops, or builder pull-outs.

🎯 What It Means for You (Yes, You!)

🏡 If You're a Homeowner:

Don’t panic. Your home’s value may not be skyrocketing like it did in 2021, but you still likely have equity. If you’re not planning to sell this year, ride it out. Real estate is long-term.

💸 If You're a Buyer:

Now’s your chance. You don’t have to fight with 10 other people over one home. You can shop smart, negotiate, and take your time. This is the most “normal” buying environment we’ve seen in years.

📈 If You're an Investor:

Cape Coral’s long-term growth makes it attractive. Rents are still strong. New businesses are opening. Population is rising. This is what healthy investment markets look like.

✏️ Final Thoughts: Don’t Believe the Hype - Believe the Data

Real estate headlines are like weather forecasts. If you only listen to today’s temperature, you miss the whole season.

Yes, things are changing. But Cape Coral is not in trouble. It’s growing, shifting, and leveling out. And that’s exactly what a stable, healthy housing market should do.

📍Want to Stay Informed?

Talk to one of our local Realtors® who knows this market and the neighborhoods inside and out. Don't rely on national headlines to tell your local story. Call 239-303-9108