Why Real Estate?
The real estate market in Southwest Florida continues to evolve, and for potential buyers and investors, understanding the performance of different property types is crucial. Specifically, the debate between single-family homes and condominiums (condos) or townhomes has become more pronounced in popular cities like Punta Gorda, Cape Coral, Fort Myers, Naples, Marco Island, and Fort Myers Beach. As we enter 2025, it’s clear that single-family homes are outpacing condos and townhomes in many key indicators, from sales volume to price growth. But what does this mean for buyers and investors?
In this article, we’ll explore the current trends in the Southwest Florida real estate market, focusing on the performance of single-family homes compared to condos and townhomes in these desirable locations. We'll also break down the data to give you a clearer picture of what’s happening in the market.
1. Single-Family Homes Outperforming Condos and Townhomes
Across Southwest Florida, single-family homes are seeing a notable increase in sales, while condos and townhomes are facing some challenges. In general, single-family homes have become the preferred choice for many buyers, especially in suburban areas like Cape Coral, Punta Gorda, and Fort Myers Beach.
Punta Gorda, Florida:
Punta Gorda has always been an attractive destination due to its waterfront properties and peaceful atmosphere. In recent months, single-family home sales in this area have seen steady growth. According to the latest reports, the median sales price for single-family homes in Punta Gorda rose by 5% in 2024, compared to a slight decline in the condo and townhouse market.
Cape Coral, Florida:
Cape Coral is one of the fastest-growing cities in Florida, driven by its extensive canal system and affordable real estate options. In 2024, single-family home sales in Cape Coral rose by 8.3% year-over-year, whereas condo and townhouse sales decreased by 3%. This trend is reflective of a larger statewide shift, where single-family homes are gaining popularity due to their relative affordability and the desire for more space, both inside and outside the property.
Fort Myers, Florida:
Fort Myers, located just north of Cape Coral, has seen similar patterns in its real estate market. Single-family homes in Fort Myers have seen a rise in median sales prices, increasing by 4.5% over the last year, while condos and townhomes have been less attractive to buyers. In fact, condo and townhome prices in Fort Myers have dropped by about 2% in the same period, reflecting a national trend of diminished demand for high-density housing as buyers prioritize single-family properties for their privacy and space.
Naples, Florida:
Naples, known for its luxury real estate, has experienced a unique twist in this market shift. While luxury single-family homes continue to dominate the high-end sector, condos and townhomes have struggled due to higher fees and special assessments following new safety regulations. In 2024, luxury single-family homes in Naples saw an 11% increase in median sale prices, while condo sales dropped by 5%. As investors seek long-term, stable assets, single-family homes in upscale communities have become even more desirable.
Marco Island, Florida:
Marco Island, another prime destination in Southwest Florida, has seen similar dynamics. Luxury single-family homes on the island have seen a solid 9% increase in sale prices, driven by the continued influx of out-of-state buyers looking for second homes or retirement properties. On the flip side, condo and townhouse sales have stagnated, with price reductions in certain areas due to increased maintenance costs and the challenge of financing high-rise condos.
Fort Myers Beach, Florida:
Fort Myers Beach has been through significant changes in recent years, particularly after the devastation caused by Hurricane Ian in 2022. The rebuilding process has had a major impact on the local real estate market, but as the area recovers, single-family homes have become increasingly popular. In 2024, single-family homes in Fort Myers Beach saw a 7% increase in median prices, reflecting the demand for larger, more private properties in the area. Condos, however, have seen less interest, with sales dropping by 4% as potential buyers prioritize properties that offer more space and a better long-term investment. The recovery from Hurricane Ian also brought challenges to condo buildings, with some facing higher insurance premiums and repair costs, pushing some buyers toward single-family homes instead.
2. Why Single-Family Homes Are Gaining Favor
Several factors are driving the growing preference for single-family homes over condos and townhomes in Southwest Florida:
Space and Privacy: After a period of increased remote work, many buyers now prioritize more space—both indoors and outdoors. Single-family homes provide larger yards, more privacy, and the freedom to customize the property, which is increasingly important to Florida’s homebuyers.
Rising HOA Fees and Special Assessments: One of the biggest issues affecting condos and townhomes, especially in places like Naples and Marco Island, is the rising cost of Homeowners Association (HOA) fees and special assessments. Following the Surfside condo collapse in 2021, Florida passed stricter building safety regulations, increasing the cost of maintenance and repairs for older condo buildings. These additional costs are making condos and townhomes less appealing to buyers.
Long-Term Investment Stability: Single-family homes have historically been a more stable long-term investment. With the continued population growth in Southwest Florida, particularly in areas like Cape Coral, Punta Gorda, and Fort Myers, single-family homes offer the potential for solid appreciation over time. These properties are also more desirable for long-term rental income, as demand for rental homes continues to rise.
Less Density, More Appeal: After the pandemic, many people have become more averse to high-density living, opting for suburban or less crowded environments. Single-family homes in less densely populated areas like Punta Gorda and Cape Coral offer a level of peace and tranquility that townhomes and condos simply can’t match.
3. The Shift in Prices: Single-Family Homes vs. Condominiums/Townhomes
Across Southwest Florida, the price trends are clear: single-family homes are outperforming condos and townhomes in terms of both median sale prices and appreciation.
Punta Gorda:
The median price of a single-family home in Punta Gorda reached $395,000 in early 2025, an increase of 5% from the previous year. Condos, on the other hand, saw a slight decline, with a median price of $270,000, marking a 3% decrease.
Cape Coral:
In Cape Coral, single-family homes are commanding a median price of $385,000, up by 8.3% year-over-year. Meanwhile, condos have seen a price drop of about 2%, with a median price of $230,000, reflecting the broader trend of less demand for high-rise properties.
Fort Myers:
The median sale price of a single-family home in Fort Myers has increased to $390,000, up by 4.5%. In comparison, condos in Fort Myers saw a slight decrease of about 2%, with prices hovering around $260,000.
Naples:
Naples remains a strong market for luxury homes. The median price of single-family homes here has risen by 11% to $950,000, while condos in the area dropped by 5%, with prices sitting at $525,000 due to the increasing HOA fees and maintenance costs.
Marco Island:
Marco Island’s luxury homes have appreciated by 9%, with median prices reaching $1.2 million. In contrast, condos on the island have seen stagnation, with a slight decrease in prices by about 1.5%, now sitting at an average of $600,000.
Fort Myers Beach:
In Fort Myers Beach, the median price of a single-family home has increased by 7%, bringing it to $550,000 in 2024. On the other hand, condos here have seen a slight decline, with median prices hovering around $400,000, reflecting buyer hesitation as the area continues its recovery from Hurricane Ian.
4. What This Means for Buyers and Investors
For buyers and investors who have been on the fence about purchasing property in Southwest Florida, now may be an ideal time to shift focus toward single-family homes. Whether you’re looking for a vacation home, rental property, or a long-term investment, single-family homes offer stability, better returns, and an overall more desirable lifestyle, particularly in areas like Cape Coral, Punta Gorda, Fort Myers Beach, and Marco Island.
While condos and townhomes may still appeal to a certain segment of the market—particularly those seeking more urban living or smaller spaces—the rising costs and additional fees may make them less attractive for many buyers.
Conclusion: The Strong Case for Single-Family Homes in Southwest Florida
Overall, the real estate market in Southwest Florida continues to show that single-family homes are outperforming condos and townhomes in terms of sales and price growth. From Punta Gorda to Marco Island and Fort Myers Beach, single-family properties offer more space, long-term value, and fewer complications from HOA fees and assessments. As the region continues to grow and attract new residents, the demand for single-family homes will likely remain strong, making them a solid choice for both buyers and investors looking to capitalize on Florida's thriving real estate market.
If you’re considering making a move in the Southwest Florida real estate market, it’s worth consulting with a local agent to explore the best opportunities in single-family homes, where the market is showing the most promise for 2025 and beyond
