According to 2018 ACS data, the various industries in the Cape Coral-Ft. Myers MSA provides a median household income of $56,129, ranking the metro 70th in the country. This is marginally higher than the statewide median household income of $55,462 and 12 percent under the national median income of $63,688. Metro incomes have enjoyed a 5.1 percent increase from 2017 ($52,052), yet only a 9.4 percent increase over the 2010 household income of $50,362. As of March 2020, the unemploy- ment rate reported by the BLS for the Cape Coral-Ft. Myers MSA has risen to 4.3 percent from a low of 2.6 percent reached in December 2019. HOME PRICE METRICS Given the current economic shocks due to COVID-19, reviewing past per- formance and current fundamentals can give us a clue where values are headed. Looking back to the 2000 to 2006 peak period, Cape Coral-Ft. Myers single-family home values shot up an incredible 158 percent as prices rose from $140K to $350K in six years. Unemployment rates hit a low of 2.5 percent in April 2006. A few months later, prices began to roll over by August, dropping a relative 60 percent over the next four years back down to the mid-2000 values of $140,000. The market continued to drift slightly lower through 2010, mean- while hitting peak unemployment of 13.1 percent. Finally, in late 2011, the job market began to improve, and home prices regained their footing. In March 2020, the median sin- gle-family home value in the Cape Coral-Ft. Myers MSA was $264,000. Since the lows in 2011, the Cape Cor- al-Ft. Myers market has rebounded 82 percent over the last nine years,
By comparison, national unem- ployment peaked near 10 percent nationally during the 2008 Recession, where Cape Coral-Ft. Myers unem- ployment peaked at 13.1 percent in the fall of 2009. As the economy reboots, various industries will bounce back faster than others. RentRange analysts forecast an end-of-year unemploy- ment rate of 8-10 percent for the market, largely due to a slow re- bound in the Leisure and Hospitality segment. Information and statistics from the Bureau of Labor Statistics employ- ment data, Department of Labor report, Census/ACS Tables and Rent- Range® data sources.
This number is expected to spike above 10 percent. UNEMPLOYMENTUPDATES THROUGHMAY9TH The Department of Labor released their unemployment insurance week- ly claim report for the week ending May 9, showing another 2.98 million people filed unemployment claims during this period. This brings the U.S. to over 36.8 million jobs lost in eight weeks, temporarily bringing the early May national unemployment to 14.7 percent. The unemployment claims in the state of Florida have in- creased drastically in the last report, adding another 220,000 claims and approaching 1.4 million.
Cape Coral-Ft. Myers Home Values through March 2020
Index Trend of Rent vs Home Price vs Employment vs Income
50%
40%
30%
20%
10%
0%
-10%
-20%
Legend
Employment Change Home Value Change Household Income Change Rental Price Change
-30%
-40%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Year
averaging nine percent year-over- year growth. In the last year, home value appreciation has slowed, up six percent year-over-year. The multi-index trend shows the extreme moves in home price com-
pared to rent, income, and employ- ment. Household income has largely remained flat in the last 10 years. In the past 2-3 years, the rent and price trends have slowed growth trends.
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