Collier County’s property values fell by nearly 6% over last year.
According to preliminary estimates from the Property Appraiser’s Office, the just value, or market value, for all properties in the county dropped to about $215.3 billion in 2026 — down from more than $228.5 billion last year.
The difference is more than $13.2 billion, or nearly 5.8%.
Vickie Downs, the county’s property appraiser, declined to comment until she gets more data, closer to July, when the final tax roll will be submitted to the Florida Department of Revenue for certification.
The final numbers are always a bit different than the preliminary ones.
Drop in market values follows years of increases
Last year, Collier County saw about a 2.6% increase in property values over the year after all adjustments, including the resolution of all valuation challenges.
In 2024, the county had a small increase of less than half of a percent, as the housing market stabilized, following huge spikes in values.
Property values rose by more than 40.7% over the year in 2022, following a buying frenzy, then by another 19.75% in 2023 following Hurricane Ian.
Ian did some heavy damage in September 2022, especially near the coastline, as it barreled by — before making landfall in neighboring Lee County as a catastrophic Category 4 hurricane. That led to some significant “land-only sales” that drove up values in the aftermath of the storm, along with other factors, contributing to the spike in 2023.
Lower market values doesn’t always mean lower tax bills
Even when market values fall, tax bills can be higher.
The preliminary data for 2026 shows a 1.56% increase countywide in taxable value — the value that determines what property owners actually pay in taxes.
Taxable value is estimated at more than $167 billion, up from about $164.5 billion in 2025. Much of that increase is attributable to new construction.
The county added about $2.35 billion in new construction to the tax roll, down noticeably from about $4 billion last year.
Market values are down in every city
Here’s a preliminary look at market value changes over the year by city:
In all three cities, taxable values are up, in part due to new construction. Preliminary estimates show those values rising by 1.41% in Naples, by 2.6% in Marco Island and by 1.5% in Everglades City over the year.
New construction added more than $546.9 million to market values in Naples. It contributed more than $264.3 million to the values in Marco Island and more than $1.94 million to the values in Everglades City in 2026.
Only Everglades City added more value from new construction in 2026 than in 2025.
Market values reflect a softer real estate market
After reviewing the preliminary estimates, Matt Simmons, managing partner at Maxwell, Hendry & Simmons LLC, a real estate market analyst in Fort Myers, concluded: “The headline this year is that market value and taxable value are moving in opposite directions.”
He continued: “Countywide just value is down nearly 6%, reflecting a softer real estate market, but taxable value is still increasing because of factors like Save Our Homes caps, exemptions, and the mechanics of Florida’s property tax system.”
For example, under the state’s Save Our Homes initiative for homesteaded properties — or primary residences — taxable values can still increase by 3% a year. The constitutional amendment capped increases at 3%, or the Consumer Price Index (CPI), whichever is lower, but the recapture rule requires taxable values to continue increasing at the maximum rate until they catch up to market values.
The real estate market hasn’t collapsed
The countywide drop in market values isn’t indicative of a market collapse, but rather a market that has cooled after several years of “extraordinary growth,” Simmons said.
“From an appraisal perspective, these numbers generally align with what we’ve been seeing in the marketplace: longer marketing times, increased inventory, and more negotiating power for buyers than what we saw during the peak years,” he said.
The value of new construction this year, versus last year, may be the most important number to consider, demonstrating the development pipeline has slowed, Simmons said.
“Markets can recover from oversupply,” he said. “They can’t recover from oversupply if you keep adding more supply. The change in new construction reflects a market that’s reacting appropriately.”
He reiterated that property owners shouldn’t assume their tax bills will be lower this year.
“Tax bills are driven by taxable value and millage rates, not just market value. You can think of just value as the speedometer and taxable value as the odometer. One tells you what’s happening right now. The other reflects years of accumulated movement,” Simmons said.
The millage rate is the tax rate used by local taxing authorities, such as counties, cities and school boards, to fund their budgets based on needs. One mill equates to $1 of tax for every $1,000 of assessed, taxable property value.
While the decline in market values in Collier County is not surprising, Simmons said it’s more modest than he expected.
“Given the slowdown in transaction activity and the softening we’ve observed in many residential segments, a mid-single-digit decline is relatively measured,” he said.
The preliminary tax roll is a starting point
Local governments, including counties, cities and school districts, will use the preliminary tax roll data as a starting point to plan their budgets for next year.
The final roll will be submitted to the Florida Department of Revenue on July 1. The department must approve the roll before it becomes certified.
TRIM (Truth in Millage) notices will be sent to taxpayers in August. These notices include information about property values, exemptions and proposed tax rates.
Tax rates don’t become final until final budgets are adopted by the taxing authorities. Annual property tax bills are mailed by Nov. 1.
Should voters approve a constitutional amendment on the November ballot to cut property taxes statewide, it will not apply to this year’s taxes.
Any changes to state law would not take effect until Jan. 1, 2027.
Laura Layden is a senior business and government reporter. Reach her by email at laura.layden@naplesnews.com.
This article originally appeared on Naples Daily News: Property values fall 6% in Collier – Down in every city including Marco
Reporting by Laura Layden, USA TODAY NETWORK – Florida / Naples Daily News
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By Laura Layden, USA TODAY NETWORK – Florida | USA TODAY Network
