Wednesday, August 02, 2006
Naples-Fort Myers Housing Market Study
Although the Naples-Fort Myers housing market is soft, the fundamentals of long-term demand remain strong, said Bradley F. Hunter, who directs Metrostudy’s market research operations in the Naples-Fort Myers market.
“Demographic and economic trends suggest continued growth in demand for new homes over the long term, driven by a current average annual growth rate of 18,600 new jobs. That is an impressive number, given the low unemployment rate — 2.3 percent — in this market.”
In the two-county area, there were 2,463 single-family housing starts in subdivisions during the second quarter of 2006, an increase of 15.7 percent compared to the first quarter, but a decline of 3.2 percent compared to the second quarter of 2005. The annual starts rate was 9,687 units, a 9.2 percent increase compared to the 8,869 units started during the previous year.
Metrostudy’s absorption figures represent move-ins evidenced by actual signs of occupancy, said Hunter, who noted that move-in statistics are a better measure of real user demand than others including deed recordings and contract sales, both of which are artificially inflated by speculative purchases.
Quarterly housing demand, measured by actual move-ins, declined 32.0 percent, from 2,250 units in the second quarter of 2005 to 1,530 units in the second quarter of 2006. Annual move-ins, meanwhile, totaled 7,703 units, a decline of only 1.2 percent compared to the 7,798 units reported for the previous 12 months.
“Demographic and economic trends suggest continued growth in demand for new homes over the long term, driven by a current average annual growth rate of 18,600 new jobs. That is an impressive number, given the low unemployment rate — 2.3 percent — in this market.”
In the two-county area, there were 2,463 single-family housing starts in subdivisions during the second quarter of 2006, an increase of 15.7 percent compared to the first quarter, but a decline of 3.2 percent compared to the second quarter of 2005. The annual starts rate was 9,687 units, a 9.2 percent increase compared to the 8,869 units started during the previous year.
Metrostudy’s absorption figures represent move-ins evidenced by actual signs of occupancy, said Hunter, who noted that move-in statistics are a better measure of real user demand than others including deed recordings and contract sales, both of which are artificially inflated by speculative purchases.
Quarterly housing demand, measured by actual move-ins, declined 32.0 percent, from 2,250 units in the second quarter of 2005 to 1,530 units in the second quarter of 2006. Annual move-ins, meanwhile, totaled 7,703 units, a decline of only 1.2 percent compared to the 7,798 units reported for the previous 12 months.
