Cape Coral, known for its pristine waterfront living, has made waves in the news over the recent weeks, splashing across front pages with headlines calling it “the worst housing market in America.” After being compared to the onset of the 2008 financial crisis, local real estate agents have finally weighed in with claims that the market is simply correcting itself.
During the COVID-19 pandemic – like most housing markets in the country – Cape Coral’s underwent major changes. These changes can be attributed to the surge of east coast residents moving in droves out of large metropolitan areas to what, at the time, was one of southwest Florida’s more affordable cities. According to Redfin, the boom ultimately led to a staggering $201,980 median price increase from May 2020 to April 2022, with a 75% jump in the median sales.
WSJ’s take
According to The Wall Street Journal (WSJ), Cape Coral’s housing market is suffering from an array of post pandemic and climate related factors that could potentially lead to detrimental effects.
The publication notes that elevated home prices, skyrocketing insurance premiums as well as property taxes, hurricane fears, a downturn in remote workers and waning demand from investors has effectively destroyed the city’s housing market. Amidst the mass migration, Cape Coral’s Lee County had 3,500 homes for sale – now there’s 12,000 listed.
WSJ’s reporters went on to compare the current state of Cape Coral’s housing market to that of the 2008 subprime mortgage crisis – during which investors purchased homes in the area in hopes of turning a profit, while banks handed out loans regardless of credit history.
Local agents’ rebuttal
Just under two weeks after WSJ’s claims, local real estate agents came to the defense of Cape Coral’s housing market.
“It seems like 2025 is that correction year for us,” Yisbel Bera, a Cape Coral-based agent with eXp Realty-affiliated Kingdom Group told HousingWire in a July 8 story.
She also noted that an adjustment is inevitable due to unsustainable prices between 2020 and 2022. Christine Blasses, an agent with Century 21 Selling Paradise, echoed similar sentiments to the publication.
“If you looked at the charts, we’re following a normal (annual growth) increase between 5% and 8% which indicates a normal market.” Blasses said. “But that spike in ’21 and ’22 was just an unrealistic market that no one could keep up (with).”
Blasses also argued that the regulations surrounding risky lending and speculative buying will prevent Cape Coral from once again becoming the epicenter of a 2008 adjacent market crisis.
Where the future of Southwest Florida’s housing market stands
As of June 2025, the housing market of Southwest Florida in its entirety remains in a transitional phase.
Southwest Florida Homes For Sale recently reported that Cape Coral and Fort Myers are seeing rate buy-downs and seller credits as incentives to stimulate buyer interest, as well as a double-digit price drop and steadiness among 4 plus bedroom homes. On top of that, the Atlantic Oceanographic and Meteorological Laboratory (AOML) predicted a 60% Above Normal 2025 hurricane season.
While the market enters a balance, large concerns surrounding insurance premiums and climate risks loom. Despite the assertions of local experts, the housing markets of Cape Coral and all of Southwest Florida still may have a tough road ahead.
