Research this year shows Southwest Florida rents are continuing to fall in 2026, extending a trend In the Know has tracked for five or so years − but nowhere is the disconnect between prices and affordability clearer than in Naples.
New 2026 data shows Collier County remains the least affordable rental market in the United States. And if it’s a three-bedroom place, the Naples area stands out as the only market where rent consumes more than 100% of typical wages, by far.
At the same time, rents keep declining, particularly in nearby Lee County.
For example, Fort Myers ranked among America’s 10 biggest drops in rent from April 2025 to last month among 644 cities analyzed by financial research firm TradingPedia, which released findings this week.
Here’s what to know.
Naples area’s widening gap between local wages & housing costs
Even with those declines, affordability remains heavily skewed in Collier County, where luxury apartments have been more of a focus in recent years.
The Naples area’s cost burden far exceeds the rest of the country, according to the 2026 Rental Affordability Report by real estate analytics firm ATTOM, highlighting a widening gap between local wages and housing costs.
An 8% Fort Myers rent drop. How does it compare to North Port?
Meanwhile, in Lee County, prices are beginning to ease.
The TradingPedia study puts the Fort Myers median rent at $1,169 a month, an 8% drop from a year ago, according to market analyst Michael Fisher. Nearby North Port saw even steeper declines of more than 11%. But even with that relief, the broader picture has not shifted.
Why are rents dropping so sharply in Southwest Florida?
“The sharpest rent declines are concentrated in cities that expanded rapidly during the pandemic and are now facing oversupply,” Fisher said. “Rents have begun to decline as new units enter the market. Yet, the broader affordability picture remains largely unchanged. The slowdown has arrived after a period of sustained growth that pushed rent levels materially higher, while income growth has not kept pace. (It’s) a cost that remains difficult for many households to absorb.
“Affordability is increasingly shaped by a more complex set of factors, including stagnant income growth, shifting migration patterns (and) evolving construction dynamics. (In) Florida, rising living costs and housing expenses have begun to slow migration and even push some residents out, marking a reversal from its pandemic-era boom.”
What SW Florida trend is helping lead to lower rental prices?
“Adjustment is further reinforced by structural shifts in real estate use, with underperforming commercial properties increasingly being converted into residential units, adding incremental supply,” Fisher said.
That shift has been visible across both Collier and Lee counties, as In the Know has written. In the Naples area, conversions and redevelopment efforts along corridors such as Pine Ridge Road and Davis Boulevard have added units in recent years, mirroring similar projects along U.S. 41 in North Fort Myers.
Where did 2026 rents fall most in America? SWFL made the list
What’s the impact from new economic and immigration policies?
There are other factors in play in the market, according to the America’s Rental Housing 2026 report by the Joint Center for Housing Studies that was originally formed in 1959 and is based at Harvard University.
“The weak job market, economic uncertainty and restricted immigration slowed demand considerably,” said Senior Research Associate Whitney Airgood-Obrycki, who blogs for the center and has a doctorate’s degree in city and regional planning from Ohio State University. “An influx of new apartments and a slowdown in demand have pushed vacancy rates up and rents down after record-high increases during the pandemic, (but) housing cost burdens remain a widespread concern.”
If SW Florida rental prices are down, why is it still unaffordable?
“Rents consume an increasing share of household incomes,” Airgood-Obrycki said. “From 2001 to 2024, renter incomes rose by 9 percent in real terms while rents rose by 30 percent. As a result, the residual income that households have left over after paying rent has declined, especially for lower-income renters. (The) cost of food and healthcare is rising. This forces difficult tradeoffs, (and) recent cuts to SNAP and Medicaid will make it even harder for lower-income renters to manage growing costs.”
Nowhere in the country is there mismatch between residents and rental rates more pronounced than in than in Collier County, according to ATTOM’s 2026 report. It is also the only market where rent, on average, exceeds 100% of local wages − underscoring how even a softening of prices has not fundamentally changed the equation for many residents.
What are the least affordable markets for renting? Naples is No. 1
Naples area is the only U.S. place where rent as a percent of wages is more than 100%. WELL over 100%.
Writing In the Know for the USA TODAY Network, Columnist Phil Fernandez (pfernandez@gannett.com) grew up in Southwest Florida and has led Pulitzer Prize-winning efforts. Sign up for our free Breaking Ground growth and development newsletter. Subscribe to our News-Press and Naples Daily News apps.
This article originally appeared on Naples Daily News: By far, Naples stands alone as 2026’s least affordable rental market
Reporting by Phil Fernandez, Fort Myers News-Press & Naples Daily News / Naples Daily News
USA TODAY Network via Reuters Connect
