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Is Cape Coral the Worst Housing Market in America?

July 21, 2025

In our article, “Will a Recession Cause Home Prices to Drop in 2025?”, we highlighted how rising inventory, economic anxiety, and falling consumer confidence were starting to crack the U.S. housing market. Nowhere is that more evident than in Cape Coral, Florida. Once a pandemic-era boomtown, Cape Coral is now flashing red as one of the steepest-declining markets in the country. 

While mainstream coverage is only catching on, Reventure App had already identified Cape Coral as a high-risk area months ago. New data confirms that the city’s downturn is both real and accelerating. Let’s break it down using data available on Reventure App:

Orlando, FL’s Home Value Growth YoY Dropped to -2.6%  in 2025

Cape Coral’s housing market is in steep decline as 2025 unfolds. After reaching a peak median home value of $398,700 in 2022, prices have now dropped to $356,400, representing a loss of over $42,000 in just two years. The correction is one of the most dramatic in Florida, reflecting growing supply, economic uncertainty, and a sharp pullback in demand.

Cape-Coral-FL-home-value-growth-2025

Cape Coral, FL’s home value growth dropped to -9.0% in 2025. Access the home value YoY growth graph of the metro here. [Link]

The year-over-year home value growth rate has also turned negative. In 2025, Cape Coral’s YoY growth has fallen to –9.0%, a drastic reversal from the 38.7% surge seen in 2022. This is the city’s worst annual performance since the post-2008 housing crash, when values plummeted by nearly 28%.

Historically, Cape Coral has been a boom-and-bust market, with rapid upswings followed by brutal corrections. The 2025 figures confirm that this cycle is repeating. With home values declining and growth deep in the red, the city has become one of the country’s hardest-hit housing markets, something Reventure App had flagged well in advance.

Homes of Sales in Cape Coral, FL, Reached 12,892 in 2025

Cape Coral is experiencing a surge in housing inventory, highlighting a market under stress. According to data available on Reventure App, the number of homes for sale in Cape Coral has skyrocketed to 12,892 in 2025. This marks a dramatic increase of over 30% from 2024, when inventory stood at 9,880, and a fourfold rise compared to the pandemic low of just 1,802 homes for sale in 2021.

Homes-for-sale-in-the-Cape-Coral-FL-2025

Homes for sale in the Cape Coral, FL, metro area reached 12,892. Access the above map here. [Link]

The current inventory level is not only the highest Cape Coral has seen in nearly a decade, but it has also surpassed the pre-pandemic norm of around 8,000 listings. This oversupply suggests that the market is now heavily tilted in favor of buyers, who have more options and greater negotiating power.

High inventory often places downward pressure on prices, especially in a market already seeing declining values and weakened demand. Cape Coral’s rising listings, combined with negative home price growth, suggest a market correction well underway. According to Reventure App’s analysis, this supply surge could continue to suppress home values through the rest of 2025 unless demand stages a significant recovery.

Cape Coral, FL’s Housing Market Predictions for 2025 – 2026

The Cape Coral, FL, housing market is projected to decline severely throughout 2025–2026. According to the Reventure App, the Home Price Forecast Score for the metro stands at just 25 out of 100, indicating that it is now a completely buyers’ market. On Reventure App, a score below 45 denotes a declining market, 45–55 suggests stability and scores above 55 reflect appreciation.

Cape-Coral-FL-Home-price-forecast-2025

Cape Coral, FL’s Home price forecast score reached 25/ 100 in 2025. Access the home price forecast score chart here. [Link]

The steep drop from a peak score of 80 in 2021–22 to only 25 by 2025–26 highlights extreme cooling in the market and highly reduced buyers’ demand. This downturn suggests more negotiating power for buyers, while sellers must price competitively and stay flexible to close deals. Both homeowners and investors should prepare for further weakening and reassess their strategies in this evolving market situation.

For buyers, sellers, and investors navigating Cape Coral’s shifting market, timing and insight are everything. With Reventure’s premium plan for just $39/month, you gain access to state, metro, county, and ZIP code–level forecasts on inventory, pricing, value trends, and market strength. Whether you’re planning to buy smart, sell competitively, or track future moves, Reventure delivers the local data edge you need to stay ahead.

Access Housing Market data for Florida and All Other U.S. States on Reventure App.