Cape Coral is the largest city in Southwest Florida and one of the fastest-growing markets in the U.S. With glorious Gulf Coast beaches, excellent amenities, and year-round sunshine, this vibrant community is enticing an increasing number of new residents and investors. This is creating a substantial demand for property in Cape Coral, pushing rent prices and real estate values to new heights.
We explore the appeal of Cape Coral for property buyers.
A City That Has It All
Known as the “Venice of Florida”, Cape Coral is home to 400 miles of waterways, many of which have direct access to the Gulf of Mexico. It is, therefore, a popular spot for boating, fishing, and water sports activities. Taking a boat over to the offshore islands makes for a great excursion, from exploring the Pine Island nature reserve to relaxing on Sanibel’s blissful beaches.
Verdant golf courses pepper Cape Coral and the surrounding region, providing many opportunities to tee off in the sunshine. Other vast, green spaces include lush parks and nature reserves, where you can relax in the open air and spot local wildlife.
Cape Coral is very much a modern city. It has undergone rapid development since it was founded in 1957, and today boasts many high-quality schools, hospitals and other amenities. It is also well connected to the surrounding region by extensive transport links. Fort Myers is just a stone’s throw away, boasting restaurants, bars, beaches, and an international airport. Other popular destinations such as Port Charlotte, Punta Gorda and Naples are also under an hour’s drive.
The Fastest-Growing City in the U.S.
According to a recent study by Quicken Loans, Cape Coral-Fort Myers is the nation’s fastest-growing metropolitan area in 2023, with an overall population growth of 6.8%. Both cities also ranked second for new residential building permits, which suggests that growth isn’t set to slow down anytime soon.
While new residents are vying for Cape Coral’s homes, they aren’t the only ones driving the demand for housing. As a favoured holiday destination, vacation homes are becoming very sought after, particularly those on the waterfront.
Property prices have grown an astonishing 70% over the past five years, according to recent data from Zillow. That said, prospective investors still have a lot to gain. As Cape Coral becomes an increasingly appealing place to live and invest, home prices are set for continued appreciation. Technical analysis company WalletInvestor expects prices to grow by 8.7% by 2028 and 15% over the next ten years.
Cape Coral Leads Rental Growth
With a booming population and strong employment market, Cape Coral is experiencing robust rental growth. In fact, it recently emerged as one of the fastest-growing rental markets in the U.S.
A recent study from Insurify looks at the increase in rental values across America’s 200 most-populated metropolitan areas. On a national level, rent prices rose by 5.3% in the year to April 2023. Cape Coral ranked third in the index with a 13.1% increase in rental values—more than double the national average.
Cape Coral was one of seven small-to-medium-sized cities (with a population of less than 500,000) to make the top ten. However, it was the only city where rent prices are higher than the U.S. average. Renters are forking out $2,323 per month, compared to $2,018p/m nationally—essentially 15% more than the typical U.S. tenant.
It’s unsurprising, then, that property investors are turning their attention to Cape Coral. The city is leading the nation in terms of population, house price and rental growth, creating opportunities for lucrative short and long-term returns.
Whether you’re looking for a high-yielding buy-to-let investment, a sunny second-home destination, or somewhere to settle, Florida’s Cape Coral could be just the place.