Cape Coral ranks 5th in the nation for foreclosure filings | Lee County | winknews.com

CAPE CORAL, Fla. (WINK)—Cape Coral had the fifth-highest number of foreclosure filings across the country last month, according to real-estate data analytics firm ATTOM.

Lakeland, Florida had the worst foreclosure rate among U.S. metros with more than 500,000 people, ATTOM reports. Cape Coral rounded out the top five with one-in-every-1,628 housing units filing for foreclosure. 

Cape Coral real estate broker Adam Bartomeo says he's not surprised by the numbers. He describes the Cape Coral housing market as a cycle of boom and bust.

"What goes up must come down, and we're there," Bartomeo said.

During the pandemic, Southwest Florida real estate was red hot. Now, the market has cooled significantly as prices have become less sustainable for many homeowners. 

"The prices couldn't stay that way, and people can't afford those mortgages," Bartomeo said.

Bartomeo said higher taxes, insurance rates and unemployment are to blame as some people struggle to afford mortgage payments.

Cape Coral Realtor Karen Borrelli said a sluggish economy is putting a strain on the housing market. 

"I think they've ticked up because our overall expenses have gone up," Borrelli said. "I think everybody's wallet is kind of feeling it, not only with food prices, but we've had insurance prices, taxes, just everything going up."

ATTOM says nationwide, default notices, scheduled auctions and bank repossessions are up 18% compared to the same time last year. However, they are down 8% from March of this year. 

Despite the foreclosure numbers, Borrelli says Cape Coral remains attractive to buyers. In March, Lee County recorded 2,215 home sales, according to Redfin.com. That's up 14% compared to the year before. 

"People are still flocking here because of our 400 miles of waterways," Borrelli said.

More foreclosures could mean more deals for buyers. Bartomeo says some banks will offer up to a $100,000 discount on foreclosed properties. 

Redfin.com data shows the median price of a Lee County home flatlined between December and February, before jumping up in March. Bartomeo said he believes the market will begin to stabilize over the next year, before home prices tick back up. 

Although Cape Coral inventory is high compared to historic levels, Bartomeo said, it has dropped from the year before. 

"It's way lower than it was last year at the same exact time," Bartomeo said. "Which is a great indicator that the market should improve."

As we move through the first half of 2026, the rental market across Southwest Florida continues to adjust after several years of volatility. The data from the first half of the year provides a clearer picture of where the market is heading, showing elevated inventory levels, longer vacancy periods, and continued downward pressure on rental pricing throughout much of the region.

This market update will focus specifically on the rental market and the trends we are currently seeing in Cape Coral and Fort Myers using year-to-date inventory data.

While conditions remain challenging in many areas, the first half of 2026 has also provided early signs that certain segments of the market may be slowly moving toward stabilization. The following charts and analysis outline where the market stands today and what owners can likely expect moving forward through the remainder of the year.

Rentals – 1st Half 2026

The market continues to soften throughout YTD 2026 as inventory levels remain elevated across Southwest Florida. While we are likely getting closer to the bottom of the market cycle, I believe that Cape Coral is stabilizing but Ft Myers and Lehigh are still approximately 6–12 months away from true stabilization in both pricing and inventory levels. Just within Cape Coral and Fort Myers, inventory levels remain historically elevated compared to pre-pandemic norms. Tenants now have significantly more options, which has increased price sensitivity and extended average vacancy periods.

Cape Coral Rental Inventory – YTD 2026

The Cape Coral inventory chart shows a drastic decline in active rental inventory throughout YTD 2026, decreasing from roughly 800 available units earlier in the year to just under 500 units more recently (there was a high of 910 in November 2025). This is a 44.4% reduction in rental inventory since the high in November.

While this reduction is encouraging and may suggest the market is beginning to absorb some excess inventory, supply levels still remain much higher than what owners experienced during the COVID-era rental boom. Properties that are properly priced and presented well are continuing to lease, but overpriced homes are sitting on the market considerably longer.

The reduction in inventory is driven by owners lowering asking prices, and landlords offering incentives to attract tenants in an increasingly competitive market. There has been a noticeable shift of tenants moving from Ft Myers and Lehigh in to Cape Coral.
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Ft. Myers Rental Inventory – YTD 2026

Unlike Cape Coral, the Fort Myers rental market continues to show increasing inventory levels throughout 2026. The chart reflects active inventory rising steadily from approximately 770 units to nearly 875 units, an increase of 13.2% in just the last 10 weeks. There is a high likelihood that in the next few weeks the inventory levels in Ft Myers will exceed Cape Corals high of 910.

This continued increase suggests that Fort Myers is still experiencing a buildup of available rental supply, largely driven by ongoing apartment construction and new rental listings entering the market faster than they are being absorbed.

As inventory continues rising, tenants maintain strong negotiating power, forcing landlords to compete more aggressively on pricing, concessions, and property condition.
As Cape Corals inventory has decreased and Lehigh's inventory levels have remained virtually unchanged at 500 for the last 7 weeks, we are very concerned with the increasing levels in Ft Myers. The normally stable market of Ft Myers has seen a lot of volatility this year with increased turnover and longer vacancy periods.

What to Expect Moving Forward

The remainder of 2026 will likely continue to favor tenants. We expect rental inventory to remain elevated, pricing to stay competitive, and vacancy periods to remain longer than historical averages.

Owners should prepare for continued competition from:

• New construction homes
• Large apartment communities with aggressive incentives
• Higher overall rental supply
• More price-sensitive tenants

Until the market fully stabilizes, success will depend heavily on:

• Accurate and realistic pricing
• Property condition and presentation
• Strategic marketing
• Fast response times and tenant communication

The positive outlook is that we are likely moving closer to market equilibrium. Depending on the city, if inventory growth begins slowing and demand remains stable, we could start seeing rental pricing stabilize and maybe increasing toward late 2026 or early 2027.

As we close out another year in real estate, I wanted to take some time to provide an update of single-family home sales and more importantly, rental pricing and predictions. As you are aware, I eat, sleep, and breath all aspects of real estate in  SWFL and understanding the current market and the future are vital to running a successful real estate company. This update is what I am seeing.


Single Family Home Sales
SFH sales have a huge impact on rental pricing and need to be studied in order to predict where the rental market is heading. When the sales inventory of homes decrease so does the rental inventory, but, there is a lag of about 8 -12 months. So, if home sales increase mid 2026 we can expect that rental inventory will decrease 8 - 12 months later, shrinking inventory, and raising prices.

I believe that for SFH sales we are at or very close to the bottom in regard to pricing. Over the past three years we have seen inventory climb and prices drop. But, we should see stabilization and an increase in pricing in 2026. As we look through all of the seeds that were planted in 2025 that will impact real estate in 2026 we can see that interest rates have begun declining, with the help of tariffs manufacturing jobs are beginning to come back to the state, the "Big Beautiful Bill" will provide lower income taxes, there will be bigger tax returns and potential tariff dividend, insurance rates have began decreasing, and the potential for no property taxes for homesteaded properties in Florida. These are some of the main factors that are influencing my positive outlook. Of course, I do not have a crystal ball, tea leaves, or a time machine but after years of declining home prices there are a lot of factors supporting the idea that we are at the bottom and should start inclining. For those of you that are entrepreneurial, it may be one of the best times to buy real estate for the next decade - purchase prices are low, interest rates are lowering, expenses are declining, and sales prices should increase soon.


Rentals
As for rentals, I think that we have another 8 - 12 months before we hit the bottom and prices stop declining. As stated above, there is normally a direct correlation with home sales and rental pricing. We still have a lot of rental inventory on the market and adding to that inventory are apartment buildings and SFH's that are still being built. Just on Skyline Blvd there are to be at least 100 units that should come to market in 2026.

Rental Inventory
The chart illustrates a significant increase in active rental inventory across Southwest Florida since 2022, with available listings rising from the low-4,000 range to roughly 9,000+ by late 2025. This represents a meaningful shift from the extremely tight rental market owners experienced during and immediately after COVID. The growth in inventory is largely driven by new construction homes and apartments, homeowners transitioning properties from short-term to annual rentals, and a slowdown in tenant demand compared to the peak migration years. As a result, tenants now have more choices, and properties that are not priced or presented correctly are taking longer to secure a lease.


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Rentals Prices
The next chart highlights the rapid rise and recent normalization of rental prices in Southwest Florida over the past five years. Median rents increased sharply from 2020 through mid-2022, peaking around the $2,500–$2,600 range as demand surged from population growth, limited housing supply, and post-pandemic migration. Since that peak, rents have gradually trended downward and stabilized closer to the low-$2,100 range by late 2025, reflecting a market that is correcting rather than declining.

The current pricing environment is best described as declining. While rents remain well above pre-2020 levels, tenants are more price-sensitive and have greater negotiating power due to increased inventory. Properties that are priced above market are experiencing much longer vacancy periods, while homes that are aligned with current rental values continue to lease successfully (but are still taking 30-60 days). Our strategy focuses on realistic pricing supported by market data, helping owners secure qualified tenants efficiently while preserving income stability in a more competitive rental landscape. There are currently 100+ 3/2/2, 1,700 sq single family homes that are renting in Cape Coral for $1,500 - $1,900. Many of these are 2018 builds or newer. If you currently own apartments, then you can expect for your units to rent for a much lower price.

 
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What will 2026 hold instore for rentals?
The initial news is not positive, we will continue to see rental pricing decrease, inventory increase, and time to fill units increase for the majority of 2026. We will battle high inventory, new construction homes, and apartment communities that have loads of amenities. We will all be battling for the same tenant's attention and unfortunately pricing will be at the center of the tenant's decision making. On a positive note, we should see an end to the madness and pricing should see stabilization towards the end of the year. Until the market shifts, we will be forced to continue to lower prices while at the same time making improvements to fill units. 

Governor DeSantis' tax proposal could reshape Florida's housing market | | winknews.com

Over the course of the year, I have been interviewed several times about real estate and the current market. From high inventory to new regulations, to the NAR lawsuit, to real estate scams. Here is another news interview by Wink News, here in SWFL.

It is a great time to buy real estate in Florida! There are several forces at work that could cause a complete turnaround of the current real estate trends. Interest rates are going to continue to be lowered. Insurance companies are coming back into Florida and we have seen a decline in rates. But, for specifically Florida, to be the first state to remove all property taxes would be a game changer. By lowering taxes we would increase the buying power of the average home buyer by $40,000. Couple that with reduced interest rates and lower insurance and the average buyer can now afford $100,000 more. When you and in that out of state buyers will want to move to a state that doesn't have property taxes, we will get a whirlwind in real estate sales. 

Take my advice, BUY NOW!

After hurricane Ian Florida saw drastic increases in insurance rates with lots of insurance providers going out of business or pulling out of the state. There was a mad scramble for anyone that owns real estate in Florida to find affordable companies to insure their properties. Some of the carries doubled and tripled their premiums making it almost impossible for homeowners to continue doing business with them. But, 3 years later, there is a change starting.

Over the past few months, I have noticed some changes. I normally use the state provided insurance, Citizens, for all of my single-family homes due to its cost effectiveness. Over the past 6 months the majority of my insurance policies with Citizens have been assumed by other insurance companies. Some of them are new, "Slide", and some are not, "American Integrity". This signifies that these carriers are willing to take on policies that are lower priced and therefore implies that the risk for these companies must be going down.

Yesterday I received an email from Tower Hill Insurance, a long-time provider of insurance in Florida that stated

"The combination of the favorable weather and the reduced litigation costs provides us the opportunity to lower rates for our members. Effective December 1, 2025, we will reduce our base rate by 5% on Homeowners (HO3) and Dwelling Fire (DP3) policies for both new and existing member policies."

After years of seeing rates going higher we may have now seen the tide turn. 

Florida may be getting set up for a drastic turnaround in the housing market.

• Lower Interest Rates
• Lower Insurance Rates
• No Property Taxes

There is no guarantee that any of this will happen, but the signs are all there that all 3 will happen AND sooner than later.

This is an email that I sent to one of the owners that I am working with to sell their house. They requested some data to understand if they should lower the price or just wait. I think that it obvious that the market is in decline and will continue that way for some time.

America’s biggest homebuilders are feeling the slowdown. D.R. Horton says spring sales are lagging. KB Home is slashing prices to spark interest. And Lennar? They’re offering jaw-dropping incentives—up to $52,000 on a $400,000 home. It’s all part of a broader shift: buyers are hesitant, confidence is shaky, and affordability is stretched thin. As a result, unsold new homes are piling up fast—117,000 in April alone, the highest since 2009. Most of that excess is showing up in Sun Belt markets like Florida and Texas, where inventory is already bloated. The good news? It's deals galore out there.

Locally, there have been several builders that have gone out of business throughout Cape Coral, Ft Myers, and Naples. These builders have left their customers high and dry. Taking tens of thousands of dollars from owners and then disappearing mid-construction. There are hundreds of "Zombie Homes" that are stuck halfway between completion and poured slab. These homes sit in wait while the weeds grow and the rain continues to damage the unfinished home.

A slowdown of newly built homes is necessary as we still have hundreds, if not, thousands of Zombie Homes that need to get completed and they need to come to market.

As we move into the summer of 2025, we want to bring you up to speed with key market changes affecting your rental investments in Cape Coral, Fort Myers, Lehigh Acres, and the greater SWFL region.

Over the past two years, I have sent several market updates expressing my concerns with the rising inventory of properties for sale and the rise of rental inventory levels. Unfortunately, I do not have positive news on either front. There has been a dramatic spike in rental inventory throughout Lee County but specifically Cape Coral, Ft Myers, and Lehigh. The data provided includes STRs (short-term rentals) which means that the total number is not correct and if you were to do the math, the percentage of increased rentals would not be correct. 

If you look at the 3 graphs - Cape Coral, Ft Myers, and Lehigh - you will see that inventory has increased dramatically since December, with consistent growth month over month. The charts show that from December until now there has been inventory growth from 20% - 25%. I can tell you that these are low compared to the actual numbers which are closer to 30% - 40% for annual rentals. As most of you are aware this creates a lot of concerns for your rentals/portfolios and also for us as property managers. A simple "supply and demand" theory states, that when inventory rises, prices decrease (unless demand also increases at the same rate). Demand is only increasing by 2% - 5%, not 30% - 40%.
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Reasons for increased inventory
There are many contributing factors to the increased inventory - overbuilding, immigration laws, houses not selling, STRs not renting, and high interest rates to name a few. There are still HUNDREDS if not THOUSANDS of unfinished homes/units still in the building phase. All of this inventory has yet to come to market. The lack of sales is creating desperate sellers who are pivoting into annual rentals. Our number one customers right now are owners who cannot sell their properties for the price that they want, and they are transitioning them into annual rentals. As employees have returned to the office, inflation has gone up, and saving accounts have depleted so has the market for STRs. We have converted about 30 in the past 2 years and in the past week, I have personally spoken with 5 STR owners that want to transition into annual rentals. 

Weathering the Storm
We are a property management team that is dedicated to giving you a better product, better service, and a better experience than any other company, in good times and bad times. We are not sitting idly by waiting for the storm to pass.

We are:

• Increasing marketing - better photos, descriptions, and we have even bought a drone and have been taking drone photography and video
• We have partnered with local assistance programs to help find tenants who are on assistance - getting them flyers, talking with their local specialists, and marketing on their website
• We are lowering tenant rents when their rent is above market rent
• We are fixing more maintenance concerns in a timelier manner
• We are trying to increase our tenants' experiences
• We ensure that every vacant property has a sign

The vacancy rate throughout Lee County is currently 15.4%. We are proud to say that our portfolio of properties has a vacancy rate of 8.3% (our goal is to be below 5% at all times). Despite us lowering rents during tenant renewals, drastically lowering rents after turnover, and our unit count staying the same, for the month of May we had our third highest revenue collection period. We are weathering the storm while continuing to row in the right direction.

Sales
You will see from the sales chart below that we are on a steep decline in median sales price. On May 31, 2025, the median sales price of $435,000 matches the median sales price from 11/30/2021. Our slowest time of the year, and the time when prices are the lowest are from Sept - Dec. Meaning that we are going to continue to see a decline in sales prices for the next several months. During this time, I am projecting that we will have a median sales price of $370,000 - $410,000. This will put us back to pricing that we haven't seen since late 2020. It is a great time to buy and will continue to be a great time to buy for at least another 6 - 12 months. There are too many high-level policies and politics in play to say if the decline will continue, stabilize, or get worse. Footnote, this data is for SFHs not multifamily but from what I can see, multifamily is following this trend. 

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The storm is not over, and it is going to get worse. Rents are going to continue to drop, vacancies are going to increase, the timelines to fill units are going to increase, and expenses are going to rise. But, it will get better and we will continue our dedication to giving you a better product, better service, and a better experience than any other company, in good times and bad times.

Adam Bartomeo / Broker
Bartomeo Property Management
AdamBartomeo@Bartomeo.com

Property Management Services - Bartomeo Realty

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As landlords, we strive to maintain our properties and provide quality housing. However, the current eviction trends present several challenges. Over the past 3 years we have seen a huge increase in evictions due to inflation and lack of high paying jobs. Tenets that don't pay their rent impact our ability to cover mortgages, taxes, and maintenance costs. We then have to begin navigating the eviction process that has become more intricate, with increased legal requirements and potential delay. Rising evictions can strain relationships with tenants and affect community dynamics.

Addressing these concerns requires collaboration between landlords, tenants, and property management. We inform our tenants about the expanding access to emergency rental assistance that can help tenants stay current on rent, benefiting both parties. We ask for open dialogues between landlords and tenants that can lead to mutually agreeable solutions before resorting to eviction. As property owners, we recognize the importance of providing safe and affordable housing. By working together and implementing thoughtful strategies, we can navigate these challenging times and foster resilient communities.

For self managing owner, property managers can often help with the task mentioned above. Property managers live tenant relations day in and day out and they understand the eviction process.

M

Photo by: Fox 4

By: Kaitlin Knapp

Posted 2:45 PM, Mar 19, 2025

SOUTHWEST FLORIDA — How many single-family homes do you think are on the market in Lee and Collier counties as of January? Remember that number, because the answer is probably going to shock you.

In Cape Coral alone, there's a good chance you've seen a home on sale no matter what road you go down. Fox 4 Senior Reporter Kaitlin Knapp went to Adam Bartomeo, owner of Bartomeo Realty, to validate what seems to be a housing boom.

"Now we have the highest inventory we ever had in Southwest Florida," Bartomeo said.

Bartomeo explained to Knapp why we're seeing a huge spike in inventory:

The video player is currently playing an ad. You can skip the ad in 5 sec with a mouse or "My opinion is that the sediment of folks was 'hey, Trump's going to come in and houses are going to sell like crazy,' so there was an influx of inventory," Bartomeo explained.

He also says many remote workers are going back to the office, which may not be in Florida.

So because of these reasons, how many homes do you think are on sale in Lee and Collier counties as of January?

"12,000 homes for sale," Bartomeo said.

That's just single-family homes! He says condos are through the roof, too.

Adding to that number is what Bartomeo calls a "shadow home." It's a partially built home that went under contract, but the builders ran out of money.

"So now, these houses are starting to come to market," he said. "I think what has happened is they spent a lot of money on other things to keep the business running."

Bartomeo believes the high inventory might stay that way for a while. Data from the Southwest Florida MLS shows there's enough inventory to last 10 to 11 months, and that's if no other homes are listed.

"Buyers are not in a rush," Bartomeo said.

This has a big domino effect. Homes are staying on the market for about 60 days, which has some people rethinking selling.

"My number one customer is I can't sell my home, can you please make it a rental?" Bartomeo said.

That, coupled with more apartment complexes going up, means the inventory is even higher. Bartomeo says that will impact how much you pay.

"Until we get through some of this inventory, I'm foreseeing that we're going to be decreasing in both rental prices and single family home sales until about the end of the year," he explained.

It's not good news for sellers. Bartomeo says there's a lot more people that are willing to negotiate anything, such as closing costs.

On the flip side, he says it's fantastic to buy homes.

There's a lot to choose from, but there's a catch.

"Interest rates do have to come down, because that prices are still too high," Bartomeo said.

So if you're a seller, Bartomeo suggests to hold on to the property if you can. If not, he says to make the house as nice as possible or stage it.

We've been in an unstable market for a while — really since the pandemic.

Knapp asked Bartomeo how do we level out the market.

"So the first thing that has to happen is they have to stop building," he replied. "Once the building gets done, then those houses will be eaten up by all the people that are actually moving down here and that will correct the market in that way."

Bartomeo says we will get a better idea of where our market is headed after tourism season, because that's when people tend to buy.