Since 2010, the population of Fort Myers has increased by 47.1%. This single figure illustrates why this area is consistently mentioned in the Southwest Florida real estate market. With no state income tax and mild weather year-round, this region has steadily attracted retirees and remote workers from other states, and this trend continues to support demand even during recent price adjustments. The source is the Steadily Fort Myers Report.

Looking at price indicators, the average home value in Fort Myers, according to Zillow, is $309,562, which has decreased by 7.3% over the past year. The median sale price according to Redfin is $345,000, down 12.7% from the previous year, and the price per square foot has also dropped by 12.3%. This indicates that the prices, which surged around 2022, are significantly retracting. The sources are Zillow Home Values and Redfin Fort Myers.

The average selling period has increased to around 87 days, and the average number of offers per listing is just one, classifying it as a market with low competition. In terms of inventory, there are significant fluctuations over time; for Cape Coral and Fort Myers Metro, in January 2026, there were about 12,045 active listings, reaching a supply level of 7 months, but by July, inventory significantly decreased to a supply of 4.75 months. While the exact figures vary by source, there is a common trend of moving from a highly seller-favored market between 2020 and 2022 to a more balanced market. The sources are MI Homes and Gulf Coast Real Estate Group.

A crucial variable in this area is homeowners insurance. The average insurance premium in Lee County is around $3,631 annually, and for homes away from the beach, premiums are expected to range from $3,700 to over $4,300 by 2026. Whether for primary residence or investment, if you do not factor in this insurance cost along with the monthly mortgage principal and interest, you may underestimate the actual holding costs. The source is Gulf Coast Real Estate Group.

For investors looking at rental properties, Fort Myers shows a cap rate ranging from 5.5% to 7.5% for long-term rentals, with average monthly rent at about $2,459. Some areas in nearby Cape Coral experience seasonal demand, yielding cap rates of 7-8%. However, with recent new supply flooding the market, the vacancy rate in the multi-family market of Cape Coral and Fort Myers has risen to 7.8%, which is a risk to consider. The sources are Gulf Coast Real Estate Group and Nora Real Estate.

If families are choosing neighborhoods based on preferred school districts, keep in mind that school district boundaries can change frequently, so even if you refer to GreatSchools or state education department ratings, it's advisable to verify the assigned school for the specific address before purchasing.

Families moving from other states should note that while Florida has no state income tax, insurance premiums and homeowners association fees are often higher than in other states, which can be easily overlooked based on their previous residence. Property taxes can also vary by county, so separate verification is necessary.

When considering investments, it's wise to check the 1% rule, which looks at whether the monthly rent is more than 1% of the purchase price, along with cash-on-cash return relative to actual investment. As of July 2026, the average rate for a 30-year fixed mortgage is around 6.6%. To get a more accurate picture of actual returns, it's important to conservatively account for risks such as insurance premium increases, vacancies, and property tax reassessments.

In summary, Fort Myers has seen significant price adjustments, but steady population growth is supporting the lower end of demand in the market. However, the unique burden of insurance costs in this area must be factored in. This article does not constitute investment or legal advice, and it is recommended to consult with professionals before making any actual contracts.