Florida growth slows, but demand still strong in Southwest Florida

LEE COUNTY, Fla - (WINK) A shift is starting to take shape in Southwest Florida, one that’s changing who is moving in, who can afford to stay, and what the housing market looks like right now.

After speaking with a Florida Gulf Coast University real estate professor, a local broker and neighbors across the area, the picture isn’t one of people leaving in large numbers. Instead, it’s a market adjusting after years of rapid growth.

Shelton Weeks, a real estate professor at Florida Gulf Coast University, says what’s happening now is a reset.

“We’re seeing a normalization of migration patterns,” Weeks said.

He says Southwest Florida remains a place people want to live, but rising costs have made it harder for some.

“We really need those folks in the labor market,” Weeks said. “Maintaining affordability for them is a key concern going forward.”

That concern is something real estate broker Dirk Fischer says he’s seeing play out in real time.

“People are easy to make decisions on buying homes for 1.5 to 2.5 million,” Fischer said. “But normal homes… they sit on the market. People can’t pull the trigger right now because they don’t know if they can actually afford it.”

Fischer describes Southwest Florida as a place where higher-end buyers are still active, while everyday buyers are facing more hesitation.

“We have 75% absentee owners,” Fischer said. “These are people who can afford to hold multiple residences… not the average person.”

He says that contrast is creating a split market where luxury homes continue to move, but moderately priced homes are seeing slower demand.

At the same time, he points to parts of Southwest Florida where lower-income residents are feeling the pressure of rising costs.

“If you are really on minimum wage… this life is currently barely sustainable,” Fischer said.

But for many who have already made the move, the appeal of the area hasn’t changed. Ava Polanish moved to Southwest Florida from New York about three years ago. She says the decision was about lifestyle and that’s still what keeps her here.

“When you’re buying a home here, you’re buying a lifestyle,” Polanish said. “It’s a beautiful environment to wake up every morning in.”

She says while prices have shifted since she moved, she still sees the area as affordable.

“I think it’s leveled off now,” she said. “It’s definitely affordable.”