Naples, Florida, Multifamily and Senior Housing Investment Report

Naples consistently appears on best-places-to-live and best-places-to-retire lists, and for good reason. It’s a sunny Florida city that’s thriving, and one of the fastest-growing metro areas according to the U.S. Census.[i] Naples boasts an enviable lifestyle, with world-class beaches and a famously happy population—coming in first place on the Gallup Well-Being Index.[ii] Naples is also one of the hottest real estate markets in the nation. In the past ten years, the annual real estate appreciation rate has amounted to 6.45%, according to NeighborhoodScout. This puts Naples in the top 10% nationally for real estate appreciation.[iii] Mashadvisor ranks Naples as the second-best market in the U.S.—and the best Florida market—for multifamily investment in 2021.[iv]

The #1 Destination for Retirees

According to SmartAsset list of best places to retire, Naples is ranked #1, based on factors that include tax burden, access to top-ranked health care, and the prevalence of retirement communities, recreation, and other seniors. Naples is such a popular retirement community that fully half of its population are seniors.[v] Naples is also top ranked on the Niche list of Best Places to Retire in Collier County, which calculates the number of newcomer retirees that moved into the area in the past year, the average sunny days per year, cost of living, crime and safety grade, plus access to restaurants, healthcare, golf courses, libraries and recreational activities.[vi]

Business-friendly and Diverse Economy

Naples is in Collier County, which has one of the lowest property tax rates in the state and, on a per capita basis, is home to more Fortune 500 CEOs with successful business experience than any other community in the nation.[vii] Forbes has listed Naples as one of the best places for business and careers.[viii] The county’s population is 386,161, and it’s expected to grow by 7.1% by 2024.[ix]

With an ever-expanding range of professional sectors, Collier County is continually redefining itself. Real estate and tourism are the largest industry clusters, and the region’s targeted industries are helping to diversify the region’s economy. These include clean energy, manufacturing, life sciences, defense, aviation & aerospace, information technology and financial services.[x]

Corporate Headquarters Fuel Employment Growth

NCH Healthcare System, a world-class leader in healthcare, has over 7,000 employees and is headquartered in Naples, as is Arthex, a global medical device company, with over 2,500 employees.[xi] There is more commercial development in the works, including an inpatient hospital by Encompass Health, an Amazon last-mile distribution center, and a multimillion-dollar logistics, distribution and warehouse center by Uline.[xii]

Naples Multifamily Market Remains Strong

Despite COVID-19’s impact on Southwest Florida’s economy, there are bright signs in the multifamily market for Naples and Collier County. Collier County has 2,119 new units under construction; multifamily fourth-quarter sales are up over the past quarter; and unemployment in the region has decreased to 6.7%, down from 9.7% the prior quarter. [xiii] Large apartment complexes or high-rise apartments are the single most common housing type in Naples, and 40% of the households in Naples, FL are renter-occupied.[xiv] According to RentCafé, the average rent for an apartment in Naples is $1,549, a 3% increase over the previous year, when the average rent was $1,505.[xv] Compared to other markets throughout Florida, Naples was one of only three metro areas to post a year-over-year increase in rents.

The Opportunity

Lloyd Jones, LLC has extensive experience as an investor, owner, and manager in the Florida multifamily and senior housing markets. We have worked with investors to find the right multifamily and senior living assets that generate the best possible returns for the past four decades, through numerous economic cycles. If you are looking to capitalize on multifamily opportunities in the Naples market, please let us know. To learn more, visit https://www.lloydjonesllc.com/

 

[i]     https://www.census.gov/content/dam/Census/newsroom/releases/2015/cb15-56_graphic.pdf

[ii]    https://www.smithsonianmag.com/smart-news/naples-florida-americas-happiest-city-third-year-row-180968474/

[iii]   https://www.neighborhoodscout.com/fl/naples/real-estate

[iv]   https://www.mashvisor.com/blog/best-multifamily-markets-2021/#more-141108

[v]    https://smartasset.com/retirement/where-to-retire

[vi]   https://www.niche.com/places-to-live/search/best-places-to-retire/c/collier-county-fl/

[vii]  https://www.collieredo.org/living-here

[viii] https://www.forbes.com/places/fl/naples/?sh=62ac47031aff

[ix]   https://www.collieredo.org/demographics

[x]    https://www.collieredo.org/industries

[xi]   https://www.swfleda.com/profiles-and-maps/#jtabs-2

[xii]  https://www.naplesnews.com/story/money/business/local/2020/08/12/collier-county-sees-major-investments-growth-and-development-continues-full-force/3351643001/

[xiii] https://lee-fl.com/wp-content/uploads/2020/10/SW_FL_Multifamily_Report-Q3_2020.pdf

[xiv] https://www.noradarealestate.com/blog/naples-real-estate-market/

[xv]  https://www.rentcafe.com/average-rent-market-trends/us/fl/naples/

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