MetroStudy Report - Naples, FL– January 24, 2012 - The Naples/Ft. Myers housing market experienced a fall in construction, but a rise in home absorption during 4Q11. This is according to a recent report by Metrostudy, a national housing data and consulting firm that maintains the most extensive primary database on residential construction in the US housing market.

There was a dramatic improvement in job growth for the Naples/Ft. Meyers area in 4Q11. After losing jobs in huge numbers for most of 2010, this market is now adding jobs at a pace of over 4,000 per year. “Primary demand for housing units will grow as unemployment falls,” said Brad Hunter, director of Metrostudy’s South Florida division. “Meanwhile, low prices will continue to attract retirees and workers with secure jobs,” says Hunter.

Single-family housing starts fell from 479 in the third quarter of 2011 to only 383 in the fourth, a 20% drop. Total housing inventory fell from 1, 175 in the third quarter to 1,072 by year-end. Finished vacant inventory continued to drop sharply, from 358 at the end of 3Q11 to 343 at the end of the year. This level is down by 36% from a year ago.

Separated by county:
Lee County: Housing starts fell versus the third quarter, but are up 20% compared with 4Q10. The pace of new home absorption rose to 272 homes absorbed, up from 212 move-ins during the third quarter, but down compared to 4Q10.

Collier County: Starts fell sharply from 245 in 3Q11 to 165 in 4Q11. Move-ins rose to 233, which increased from 203. The number of finished vacant homes fell once again, from 182 at the end of 3Q11, to 179 at the end of the year. Total housing inventory also fell from 615 to 547 at year-end.

“There were a lot of surprises and twists in the Naples/Ft. Myers market in 2011. For one thing, not many people would have thought the top-selling community could be in Cape Coral. Sandoval, in Cape Coral had more starts than any other community in the two-county area. Also, it is surprising that several of the most active projects are in an upper-middle-class price range ($300,000-$400,000), and that is well to the right of the bell curve,” said Hunter.

For information contact:
Brad Hunter @ 561.228.8001 x501
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