Fort Myers Multifamily Market Report
Market Overview
Fort Myers serves as the primary economic hub in Southwest Florida, with its economy closely linked to sectors such as agriculture, manufacturing, information technology, and life sciences. Tourism plays a pivotal role, supporting one in every six jobs in the region. Fort Myers has witnessed year-over-year employment gains across various sectors, particularly in education, health services, and professional and business services. Oxford Economics reports that Fort Myers has around 300,000 total jobs and produced a GDP of $44.6 billion in 2022. The finance & real estate, and construction industries made the most significant contributions to this growth, with the construction sector seeing the highest job creation rates. These sectors are anticipated to continue leading economic expansion in the coming years, with employment growth expected to average around 1% annually until 2028. Job creation is forecasted to be primarily driven by the hospitality and government sectors during this period.
Highlights
- The region’s economy, generating a GDP of $44.6 billion in 2022, is expected to see continued growth led by finance, real estate, construction, and hospitality sectors.
- Fort Myers is estimating an average annual employment growth rate of around 1% projected through 2028.
- Cape Coral and Central Lee County are among the most popular multifamily submarkets in Fort Myers, accounting for a significant portion of the active development pipeline.
- Cape Coral and Central Lee County lead the region in asking rent contraction. This indicates high levels of market activity and demand.
Rents | Vacancy | Construction
The Fort Myers multifamily market, has faced a surge in new construction amid limited demand from new renters. With approximately 2,200 units delivered in the past year and only 520 units absorbed, the vacancy rate has risen to 13.5% as of Q2 2024. The ongoing development pipeline of 6,700 units is expected to keep vacancy levels elevated in the near future. Asking rents are at -5.9% year-over-year as of Q2 2024. A modest recovery in rent growth to just under 1% annually is projected by the fourth quarter, with a more substantial growth expected in 2025, ranging between 3% and 4%, as renter demand strengthens. Fort Myers has had approximately 2,200 units delivered in the past year and another 6,700 units under construction. This surge in new construction is set to expand the market’s upscale inventory significantly by 27.9%.
The multifamily market fundamentals are predicted to remain relatively stable in the upcoming quarters. While there is a positive outlook for renter demand, it is expected to be significantly surpassed by the rate of new property completions, leading to elevated vacancy rates. Consequently, landlords may need to continue lowering rental rates and providing concessions in order to remain competitive for renters.
By the Numbers | Last 12 Months | Source: CoStar Group
- Vacancy Rate: 13.5%
- Rent Growth: -5.9%
- Delivered Units: 2,202
- Sales Volume:$414M
Sales
Fort Myers has experienced notable shifts in capital market activity in the multifamily sector over the past year. It was one of the busiest markets in Southwest Florida, with a total sales volume exceeding $1.2 billion in 2022. Investment volumes have moderated since mid-2022, averaging around $55 million per quarter. A significant transaction in June 2023 involved Atlanta-based ECI Group acquiring the Longitude 81 Apartments for $78.8 million, representing a premium of 20% over the market average price per unit at the time.
To read a previous Fort Myers Multifamily Market Report, click here.
