In most housing markets, price softening spreads more or less evenly across segments. In Collier County, Florida – home to Naples and ranked among the top three U.S. metro areas for its share of millionaire households – the market has split into two distinct tiers. Homes priced at a million dollars and above are still moving without difficulty, according to Robert Schuchman, a broker with Integrity First Group at eXp Realty who operates offices in Naples and Cape Coral. Below that threshold, extended days on market, rising inventory, and increased buyer leverage tell a different story entirely.
“A million and over, homes still selling, no issues,” Schuchman says. “The lesser-end properties – extended days on market. Buyers have negotiating power, inventory’s up.”
The pressure below the million-dollar line falls hardest on condominiums. After a deadly building collapse near Miami, Florida began requiring condo associations to commission structural engineering reports and fully fund reserves for major repairs. Owners now carry those costs through higher HOA fees and special assessments.
Lenders and insurers have pulled back at the same time. Schuchman describes a three-sided squeeze: “The lenders don’t want them, insurance doesn’t want them, and the cost has significantly increased.” Fewer buyers can finance a condo, owners who can no longer absorb the costs are selling, and listings pile up. Buyers now open every conversation by asking what the HOA fees are and what they cover, from exterior maintenance to club membership.
The units still selling fall into two groups Schuchman calls “a deal or a diamond.” A deal is a unit priced well below comparable listings by a seller who wants out. A diamond is the best unit in its community, fully updated and with the best view. Everything in between sits.
In bundled golf communities – developments where club membership is mandatory with home ownership – single-family homes barely make it to the open market. In Forest Glen, the community where Schuchman lives and works, he says homes sell before they’re publicly listed. “I got some right now that they’re in my pocket. Nobody knows they’re for sale unless they know me.”
The catch is the cost of entry. Single-family homes in Naples rarely sell below the million-dollar mark, which leaves buyers with smaller budgets two paths. They can buy a condo and take on the fees and financing hurdles that come with it. Or they can look to neighboring markets such as Cape Coral, where Schuchman says new single-family homes still sell for about half the price.
FEMA’s 2024 revision of Collier County’s coastal flood maps added another layer of cost to waterfront and near-waterfront ownership. Properties that previously sat outside designated flood zones now fall within them, triggering mandatory flood insurance for any buyer carrying a mortgage. A further map update is expected to take effect in 2027.
For wealthy cash buyers, the calculus is different. Schuchman says many waterfront homeowners in Naples have dropped flood insurance altogether, choosing to self-insure. “The FEMA policies only cover a quarter million dollars of damage,” he says, adding that the premiums are costly. “So they just gamble.” For financed buyers, the added cost is unavoidable and has become a factor in where they choose to purchase, since locations outside flood zones are available nearby.
For investors considering Naples, the first question is not price – it is rental policy. Most gated communities impose a 30-day minimum lease term and limit rentals to three tenants per year. Some prohibit renting entirely for the first two years of ownership. These restrictions screen out short-term rental strategies.
Marco Island is one exception. Some condominium buildings there allow weekly rentals, making them more viable for investors seeking rental income. The tradeoff, Schuchman notes, is livability: “That place is like a hotel. For investors it’s great. But for home ownership – I don’t want to buy a home where I have new neighbors every seven days.”
Older single-family homes in ungated sections of Naples represent another investor-friendly pocket, with no rental restrictions – though they lack the amenities and security of gated communities.
Schuchman describes the broader market as a “transaction recession,” a term for a market where few homes change hands, rather than one where prices collapse. He says the phrase came up repeatedly at industry events, including a recent Zillow conference, and he expects sales activity to stay flat for the next couple of years.
Part of the slowdown is psychological. Mortgage rates today sit roughly in line with their long-term historical average, but buyers who remember the ultra-low rates of the pandemic years see them as expensive. “We’re not in a high interest rate environment right now. We’re just not. But psychologically, people think we are,” Schuchman says. He does not expect those pandemic-era rates to return.
Naples is also a seasonal market, with most activity running from fall into early spring, when part-time residents return. Schuchman is watching early signals, such as buyer traffic, new listings and how quickly homes sell, for clues about how the winter season will unfold.
At the top of the market, high-end buyers keep arriving, often replacing departing owners with even greater purchasing power. “The wealthier are leaving, and the wealthier are moving in,” Schuchman says.
For buyers, the split creates two different sets of conditions. Above the million-dollar mark, competition remains intense, and the most sought-after homes often go to buyers with local connections before they reach the open market. Below it, buyers have more room to negotiate, but HOA fees, insurance, and flood coverage can cancel out much of what they save on price.
About The Expert: Robert Schuchman is a broker with Integrity First Group at eXp Realty, operating in Naples and Cape Coral, Florida.
This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.
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