Ask Renee: Is Naples Expensive to Live?

¡Hola! Let's dive into the question that so many seem to have on their mind, and that's, is Naples, Florida, an expensive place to live? You know, before I dive into some of the data, I always like to say at some level, these things are all relative, right? I can have a client that comes in from California, New York, Chicago, and they're just tickled when they see how their dollar is going to spend down here. Then I'll have clients that come in from Ohio, Michigan, Iowa, and they're in sticker shock. So when you think about that question, a lot of it has to do with what your frame of reference. But let's dive into it. I'm not going to sugarcoat it. There is no question. I have lived a lot of places. In fact, I spent the majority of my career working for a large company named GE back in its heyday, and they liked to change my address about every 2 to 3 years. So you can imagine I've collected a large number of addresses and across lots of different states, and it certainly is one of the more pricey places that I've lived. But what I've also come to appreciate is while I live in my insulated world here and I think about and sometimes complain about the cost of living in Florida, and then I go other places, I quickly become aware that those places have gotten more expensive too. Um, I won't go long on this, but we have a second home up on a lake in Georgia called Lake Oconee, and I complain about the cost of food in Florida all the time. And then when I go up there to have dinner, I realize I'm paying the exact same thing. And guess what? The house prices are very expensive there too. And guess what? They have a state income tax. But let's dive into that. I digress for a moment. So let's unmask the costly charms of Naples. Paradise priced, if you will. Now I wanna start by acknowledging that no question, Naples, Florida is a place where sun kiss, the sun kisses your skin. The Gulf of Mexico waves hello every morning. I know people think that the Midwesterners wave, but we wave too. But amidst the tropical paradise and endless beach days, you may be wondering, is it expensive to live in Naples? Can I afford to? Prepare for a lighthearted exploration of life's cost in this sunny wonderland. It's no secret that it's considered one of the nation's wealthiest cities. It gets touted, it gets talked about, it gets published. It's known to be home to the second highest amount of millionaires. By the way, there is a benefit to that because those millionaires who are sharing a community with us are so generous in investing in the area. So for a, a town the size of Naples, we have a lot of amenities that other places of comparable size would not enjoy, whether it's the zoo, whether it's the botanical gardens, the Philharmonic, the multiple performing theaters. The Baker Museum, the Artis, lots of things. But again, I digress for a moment. Naples continues to be one of the most desired places to live in Florida and is ranked the 6th highest per capita income in the country. Now that might not be people who are earning their income here, but in terms of residents, people love moving to Naples because it's— because of its high-end shopping, the abundance of golf courses, and some of the most beautiful stretches of beach. Another great thing about Naples, which attracts many residents and visitors, is that it's the one of the safest cities in Florida. I'm going to come back to that in a moment, so hold that thought. But let's look at breaking down the Sunshine State budget. So without question, the over— if you find the overall cost of living index published in many different places It's 111.9 as of the last time I checked, which is higher because the national average is considered at 100%. So we're about 12% higher than the national average. Considering that the state of Florida as a whole has an index of around 103, it's safe to say that Naples is probably one of the more affluent areas than the rest of the state. But I can tell you we are not the most expensive. In fact, I don't even think we're in the top 2 most expensive. Let's break it down by the different areas that you may spend. So let's look at home prices. Naples is known for its stunning waterfront properties, and while, mm, they might look like they belong in a Hollywood movie, you may be surprised. Sure, some homes come with a price tag that could make you gasp after you get done admiring how beautiful it is. But hey, who needs walls when you can live on a beach, right? Despite all the millionaires, this area and the properties that they own that are luxury properties, the median property value in Naples is still sitting around $600,000. Now that's a mix of different property types, but the point is, at any, any price point, you can find a dwelling that you can afford here. The question is just relative to what you're used to getting for that same amount. Is it going to be different? And that's probably going to be yes. Let's look at dining. So dining like a millionaire without being one. This is probably an area that I sometimes feel and gripe about the most. Naples has a culinary scene that rivals any major city, and some of those dining options can cost a pretty penny. The nice thing that I say as an aside is even in the most expensive venues, it can be casually enjoyed in your flip-flops and shorts. It's one of the endearing things I love about Naples is Everything is a very understated wealth. It's very casual, it's laid back, it's relaxed. But remember, you don't have to drop your life savings on a meal. There's an abundance of affordable local gems that serve delicious bites without emptying your wallet. One of the pro tips I want to give you is think about happy hour. There are some great happy hour options even down on Fifth Avenue. So if you don't want to spend a lot, maybe you pull up your eating time a little bit earlier in the day and take advantage of some of the happy hour deals. Golfing. We are known for golf. Obviously Naples boasts more golf holes per capita than anywhere else in the country. So people want to come here and dust off their clubs and get ready for tee time. Now the green fees might make you blink twice, but consider it an investment in the health of your retirement fund or your golfing swing. Again, it's another area, even though our green fees for public courses or even membership fees can run high. I could show you a handful of other locations. I used to have a family property on Kiawah Island, and I can tell you the golf there certainly rivaled, in some cases outpaced, many of the golf experiences I've had here in Naples. So again, it's all relative. Let's look at retail. Retail haven or retail therapy? Fifth Avenue South is Naples shopping haven. In addition to, by the way, Waterside Shops, which has luxury shopping, you'll find boutiques that can make your credit card sweat. But fear not, there's also plenty of window shopping to do as well. And those designer shades you bought? Totally justified. And remember, not too far away, we actually have an outlet mall where you can go and find things at a discounted rate. That's not a bad deal. Now, I'm not gonna lie, Insurance does cost more. Your insurance costs tend to run you higher on things like homeowners insurance, flood insurance, and even auto insurance is higher than many other places. But here's some of the good parts. Not everything here is more expensive. So let's look at utilities. According to electriccitylocal.com, the average residential electricity rate in Naples is 8.93% less than the Florida average rate. And beyond that, it's 12.5% less than the national average rate. Yes, there are some things that it's cheaper to do here in Naples. State income taxes. Florida has no state income taxes and considered one of the lowest tax states in the country. This means that if you work in Florida, your paycheck will be free from taxes other than federal income taxes. That means more money in your pocket. This will make your take-home pay higher and provide more income for the basic cost of living purchases. Florida is also very tax-friendly for retirees with no taxes on retirement or pension. Big, big benefit and one of the main reasons why we have people make this their domicile, their primary residence, even when they enjoy a home somewhere else. Sales tax. Florida has a statewide tax of 6%. Many of the items are excluded excluded from the sales tax, including things like food— excuse me— medical supplies, farm production supplies. Um, property taxes, let's talk about that. Property taxes do run about close to what the national average is according to some of the publications online, but with Homestead and Save Our Home programs, remember, there could also be some upside to you. And at 1.25%, Naples actually has one of the lower property tax rates in the A lot of what we make money on as a township, as a city, is the tourism tax. And if you're going to be a resident here, that one won't bother you near as much. There's also a lot of tax breaks. So if you're thinking about, you know, different things during the year, the state does offer— whether it's on school supplies sometimes, whether it's on hurricane preparedness. I saw one was on, um, outdoor activities. So keep in mind that when you think about Florida, is it expensive? Yes. Is it the most expensive? Absolutely not. Is it affordable? It can be. So while you may pay a bit more for your flip-flops, you don't need to be giving away your hard income-earned cash to the taxman at the state level. So in the grand scheme of things, Well, it could be a pretty penny, but you could also live on a budget and you could enjoy every bit of this tropical paradise. There are also, by the way, I want to point out, coming back to the point I made earlier, there's some intangibles, like the fact that Home and Money reported overall that Naples has 37% lower crime rate than the US average. Statistics show that it is also 75% safer than the state of Florida as a whole when it comes to violent crime. Property crime— excuse me, I can't talk today— the property crime rate is also 30% lower than the statewide average in Florida. So living in Naples is more than just about cost. It's about endless sunshine, the gentle sea breeze, the way the waves serenade you when you sleep at night. Should you be so honored to be able to hear that. So if you're thinking about making this beachy haven your home, remember that while the sun shines brighter here, So does the potential for life filled with sandy toes, warm sunsets, and memories that are absolutely priceless.