Collier County: America’s Money Magnet

And the overflow comes into Lee County

As published in The News-Press Homeseeker – June 26, 2010

By D.  Michael Burke – Bonita Springs – Estero – Naples Real Estate Luxury Expert

Southwest Florida has long been a popular place to relocate after retirement. Between our resort-like setting, our beautiful homes, and our retirement-friendly taxes, retirees have flocked to our neighborhood for many years now.

My point is, the popularity of Southwest Florida is undisputed – but those of us in the real estate business have noticed a new trend lately. Although Southwest Florida is still a favorite place to retire, and probably always will be thanks to the tax benefits our state offers, we are also noticing many more wealthy homeowners and investors (both local and foreign) moving into the area.

Using the Internal Revenue Service’s records for 2008, which is the most recent data available at the moment, Forbes.com recently did a study of where America’s wealthier citizens are moving. Our own Collier County beat the rest of the country by a landslide! Compared to the others on the list – such as Florida’s Nassau County, which had 4,785 move there in 2008, and Greene County in Georgia, with fewer than 800 new residents – Collier County had a whopping 15,150 people move in during the course of the year!

Even more telling is the per capita income statistics. In 2008, stables families in Collier County – those who didn’t move in or out – made $49,959 per person. To put that into perspective, remember that for a family of four, that equals a total household income of $199,836. The families who moved into Collier County throughout the course of the year, on the other hand, made an average $76,161 per person – or $304,644 for a family of four.

Obviously, this part of Florida is attracting increasingly wealthier residents. But as that happens, lower income residents are also moving out. During the same year, 16,802 people moved out of Collier County – but of those who moved, the average income per person was a telling $26,128.

Based on the statistics, we can see a distinct upward trend for Collier County, and by association, Southwest Florida as well. This area, at one time hit so hard by falling real estate values, has been making a steady comeback – demonstrated by the influx of wealthier Americans. In addition, the last couple of years have seen a stabilization of prices, a significant increase in the number of closed properties, and a decrease in the number of homes on the market.

What has caused the trend? Undoubtedly part of the appeal is the same as it was before: We still have no income tax, which makes our state a perfect place for wealthy Americans as well as retirees on a pension. Resort-like living and beautiful luxury homes are also no doubt a factor. But perhaps most importantly, our housing prices, which are currently very competitive, enable homeowners to have all of this for a much better deal than they could have in the past.

This trend bodes well for Southwest Florida. As the influx of wealthier residents continues, Collier County and the surrounding areas will cater to them, which will ultimately raise housing values. But what does this mean for you? Well, as a buyer, it means you are choosing the best possible time to become a homeowner in Southwest Florida, as real estate values are sure to go up. It is also a good time to sell, since buyers are being drawn out by the promise of a good deal.

To discuss real estate trends in Southwest Florida in more detail, please feel free to call me. As a luxury real estate expert specializing in Lee and Collier Counties, I have firsthand experience with the buying and selling trends in these neighborhoods, and I would be happy to advise you!

Contributed by D. Michael Burke, P.A. Keller Williams Elite Realty
Michael@CoconutPointRealEstate.com / www.CoconutPointRealEstate.com