The Naples Rental Market Analysis and Predictions
The residential rental market in the U.S. is undoubtedly growing in size, investment opportunities, and funding. The continued growth in new rental portfolios and investments is expected to help drive more demand for better software technologies and property management companies.
According to the latest state of the U.S. rental property market report, home rental markets will continue booming throughout the nation this year. Although the report further warns of a possible lack of substantial increase in new supplies, it indicates that renters’ income will increase by at least 3.3% into the year.
With more buyers continuing to be shut out of the property purchase market, vacancy rates won’t be falling any time soon. Prices, among other market indicators for rental investments, are excellent for investors, especially those hunting for cities with top rent yields like Naples in 2022.
If that’s true for you, here are critical rental insights for those looking to invest in the Naples rental property market.
Naples Rental Market Trends 2020
The average rent for residential apartments in Naples was $1500 per month in 2020. The median rent for upscale units in the same housing market was $3700 a month. At this time, the rental rate was skewed upward mostly by varying premium packages that mainly came with most oceanfront properties. Landlords could sometime charge even more for units that cater to the many tourists coming in or overlook the Everglades.
The average price of a typical home in Naples was roughly $320,000. This was about 50% higher than that of the entire state. The median household income ranged around $90,000 per year, but the significant retiree population and the numerous rich people living in Naples were also skewed upward. The 2020 Naples real estate market was considerably expensive, which prevented most long-term residents who weren’t wealthy from buying houses in the city.
On the flip side, the incredibly high median age encouraged more retirees to relocate to Naples either for part of the year or several years before heading to a nursing home. This way, the city created a sizeable rental population that is nearly immune to economics and can live in active adult communities. The many properties owned by part-time dwellers also helped generate more demand for residential rentals for most full-time residents.
If you want to snap up the Naples property market, low-maintenance beach condos are still good buying options to consider.
Ironically, these are the most readily available property type in Naples. The prices for luxury condominiums and fee-heavy condos declined due to an abrupt inventory influx. This was a significant improvement over the other rental markets, where most abundant properties featured distressed sellers behind mortgage payments and bank foreclosures. Most of which typically required fixing up before being rented out.
Overall, the 2020 Naples real estate market had fewer foreclosures and underwater homeowners than average. However, more cases of distressed sellers and bank foreclosures kept increasing as you moved inland towards Chokoloskee.
2020 Naples Rental Statistics: the average rent for a standard apartment in July was $1792, a 14.96% surge from 2019 when the average rent equaled $1,524. This also accounted for a 0.67% decrease from June 2020, when the average rent was $1804. Here is a brief breakdown of the 2020 rental statistics in Naples:
- One-bedroom properties rented for $1325 per month on average, accounting for about a 0.6% increase from 2019
- Two-bedroom units rented for $1635 per month on average, accounting for slightly more than a 3.06% spike from that of 2019
According to RentCafe records, the average size for a rental apartment in Naples back then was 938 square feet. Remember studio units were the most affordable, one-bedroom apartments closer to the average, and two-bedroom and three-bedroom units fetching the highest rent price. However, 40% of all households were renter-occupied, and at least 95% of the residential apartments rented for less than $2,000 per month. This means that about 36% of the units rented for between $1,501 and $2,000.
Naples Rental Properties Trends in 2021
The demand for rental homes across Southwest Florida is rising, and the investors are selling rental properties throughout Florida, causing inventory to drop. The general drop in rental supplies made rental rates escalated significantly in 2021.
Units with a rent price of $1,400/month increased to $1,700, while those going for $1,500/month jumped to $1,900/month.
Experts’ predictions came to pass as the upward trend continued for the rest of 2021 simply because inventory could not catch up with the ever-growing demand. As a result, rental prices skyrocketed to record-breaking levels.
Here is a rundown of the 2021 Naples rental property market according to point2homes.
- Rentals accounted for at least 22% of the real estate in Naples
- The average rent price for an apartment in Naples was $2,302 in October, accounting for a more than 41% increase from a year ago
- Apartments renting for more than $2,000 a month dominated the Naples rental market, while those renting between $700 and $1,000 took up the smallest share of the market at 1.23%
- 3.7 was the median number of rooms rented, with 2-bedroom properties getting the most significant market share at 44% and 5+ bedroom units getting the lowest at 1%
Naples Rental Property Trends 2022
As of February 2022, RentCafe reports that the average apartment rent in Naples is $2,252. However, it would be best to understand that the rent prices often vary depending on several factors like location, size, and quality. This year, the average size of a standard apartment in Naples is 1,008 square feet, but this might greatly vary depending on unit type and cheap and luxury alternatives.
There are about 4,356 renter-occupied units in Naples, accounting for about 40% of the total households. In contrast, 6,441 (59%) are owner-occupied. Fairly affordable neighborhoods this year include Aqualane Shores with an average rent of $1,828/month, Coquina Sands with an average rent of $1,828/month, and Lake Park with an average rent of $1,828/month.
Need Professional Help?
Housing markets are very dynamic. They often change without notice and can sometimes be unpredictable. Given the numerous variables at play, the Naples housing market forecasts indicate that this year will be prosperous for those who invest wisely.
So, if you are ready to get your feet dirty or have already invested in the Naples real estate, the Woodruff Real Estate & Property Management is here to help. It is a locally owned property management firm that offers a fully dedicated and qualified team that always handles all client real estate investments as their own.
Feel free to either call (239) 920 8799 or send us an email at firstname.lastname@example.org to get started. Contact us now and get a free quote if you are a property owner.
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