Cape Coral Land & Vacant Lot Market Update (2025)
As of July 2025, the average listing price for vacant lots in Cape Coral has risen to approximately $98,500, reflecting a 25% increase from around $78,400 in July 2024. Prices continue to vary significantly based on location and features: Off-water lots typically start in the mid-$40,000s. Waterfront parcels begin around $55,000, with premium riverfront or Gulf-access properties often exceeding $450,000. According to LandSearch, Cape Coral currently offers over 4,200 vacant land listings, with an average list price of $160,200 and a median price of approximately $71,500. The average lot size remains around 0.3 acres (roughly 13,000 square feet). For historical context, in April 2023, the median closed sales price for lots was $50,000, with an average sale price of $75,000 and approximately 2,559 active listings, indicating a strong buyer’s market at that time.
Cape Coral Land Market Conditions (July 2025)
📈 Market Dynamics & Demand Inventory has grown substantially, reducing seller dominance and tilting the land market toward a buyer’s market with more balanced conditions. The vacancy rate remains elevated, with listings widely available across various price ranges. Demand remains strong, particularly for waterfront and Gulf-access lots, driven by Cape Coral’s extensive 400+ miles of canals and its relative affordability compared to other waterfront markets. This continues to attract investors and builders. Development activity is ongoing, with many vacant parcels earmarked for future construction, especially in emerging zones. However, a portion of listings persists as speculative inventory, reflecting investor interest in long-term appreciation.
Cape Coral Land Market Risks & Headwinds (July 2025)
⚠️ Market Challenges The housing market in Cape Coral and the broader Fort Myers metro area continues to weaken. Over the past two years, home prices have dropped by 12%, with declines in 13 of the last 14 months. Over 60% of listed residential properties have experienced price reductions, and a growing number of homeowners are underwater on their mortgages, as reported in Deborah Acosta’s Wall Street Journal article, The Worst Housing Market in America Is Now Florida’s Cape Coral, published on June 30, 2025. Insurance and tax costs have skyrocketed, with insurance being a critical issue. Many property deals have collapsed due to prohibitively high coverage costs, deterring buyers. Community concerns are escalating. Online discussions, including on Reddit, highlight infrastructure strain, contractor fraud, and environmental issues such as saltwater intrusion and overburdened utilities. National housing forecasts project a potential 20–45% regional correction, driven by heightened climate-related risks and escalating insurance exposure, posing significant challenges for the local market.