Local real estate market has crossed the chasm
If there was any doubt about our market being in the big-time, it is now erased in my mind. We have just made the economy.com most overpriced homes list. Yes, along with places like Boston, Washington, DC, San Diego and Las Vegas, the Cape Coral – Fort Myers, FL market weighs in at number 40.
The factors used in compiling this list include employment forecasts, population forecasts, and income level and growth compared with housing prices. Clearly we do not have population and growth shortages, the big challenge facing this region is in the area of job creation and job growth. Where is the job growth outside of the real estate and tourism industries? I have been looking under many rocks for answers to this question and just cannot seem to find many.
With a large under-employed workforce, favorable tax rates, relatively inexpensive infrastructure and great weather, I am amazed that more companies have not set up shop here in Southwest Florida.
There seems to be this underlying optimism in the region associated with the opening of the new airport…..that companies will come flocking to the area. Probably not the case, but some of the other developments including the expanded presence of Florida Gulf Coast University are creating a positive environment for business growth. Additionally, the development of more class A office space, particularly concentrated around I-75 exits is a very positive step in attracting first class businesses.
Does my concern about job growth mean that you should pull capital out of SW Florida, no it does not. What you should be thinking about is investing in the right type of property that will continue to experience price appreciation. Certainly the best locations with access to favorable amenities and infrastructure will continue to be winners for the long haul.
Most overpriced home markets [CNN Money]
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