Just How Expensive is Naples, Florida?

Hello, Renee Han, your Naples real estate expert. This video is part of a series I call Naples Revealed, where we explore all the various aspects of Naples, Florida living. Be sure to subscribe below to keep up to date on new videos to help familiarize yourself with the Naples area. And of course, reach out anytime if I can be of assistance to you on your journey to explore Naples living. Okay, today we're going to discuss how affordable or unaffordable Naples, Florida is. Are you one of the many that's been dreaming of that beachfront lifestyle in Naples? I know I was. After all, Naples was named the best place to live in America by U.S. News and World Report this year. The report said that the city's low crime rate, high desirability, and quality of life all contributed to the number one ranking. But before you dive headfirst into real estate market, it's important to understand the true cost of living in this idyllic coastal city. While Naples offers unparalleled beauty and a relaxed atmosphere, it's not without a financial cost. So let's explore together the pros and cons of the cost of living in Naples. There are a number of resources for statistics on the cost of living. I'm going to highlight 3 of them, and although all 3 reports are slightly different from a numbers perspective, they all agree on one thing: Naples, Florida is more expensive to live in than many other places, and it comes in higher than the national average. This includes things like expenses for food, transportation, and healthcare. Although I could point to several more expensive areas in the US, including many places in California, downtown New York, and Chicago, when I'm relocating people from these geographies, Naples looks like a purring cat. Whereas someone coming from places like Ohio or Michigan or many other locations will definitely feel the cost of living difference without as much favor. According to the Bureau of Labor Statistics, the cost of living index for Naples is 119.9, which means it is 11.9% more expensive to live in Naples than the national average. Best Places published that Naples' cost of living score is 113, This equates to 13% higher than the U.S. average and 9% higher than the Florida average. Even more pronounced, the Economic Research Institute reports that Naples' cost of living is 30% higher when compared to the national average. So 11%, 17— 13%, rather, 30%, Let's break down this cost of living a bit more, and we'll start with housing cost. Best Places goes to share that a typical single-family home costs $1,045,000— we'll round it up— $46,000. This is 209.3% more expensive than the national average of $338,000 and 188.7% 6% more expensive than the average Florida home that comes in about $362,000. Now, slightly different, according to Zillow, the median home value in Naples as of September 2024 was $593,000, which represented about 21% higher than the national average. Now, without question, you can find some of the most expensive properties in Naples, so scoring up past $25 million, which definitely affects the averages. But keep in mind that the broader Collier County does offer some affordable housing options. As you push further east and north, you start to see more affordability and the equation shifts a bit. And I always tell people that you can actually find a home at every price point here in Naples. The question is, are you satisfied with the dwelling that is produced for the same price point? If you're coming from a place like Michigan, which is where I'm originally from, as an example, your dollar will likely get you a smaller piece of land here, a smaller home, and perhaps one that's a bit more modest than what you may be leaving behind. With our busy tourism industry, affordable housing for employees continues to be a challenge, but the county remains focused on it. Since 2018, 3,891 new affordable units were approved by the Collier County Board of Commissioners. 2,108 of them are located in the urban area while 1,783 are located in rural areas like Immokalee. Shifting away from homeownership to rental market, as you would expect, renting can also be more expensive in Naples given the cost of homeownership that we just discussed. Best Places shared that a 2-bedroom unit in Naples cost about $1,890 per month. Now that stat seems a little bit low to me, but we'll go with it. It represents 32.2% more than the national average of $1,430 and 17.5% more than the state average that comes in about $1,560 a month. A big contributor to the high rental cost is the premium that so many people are willing to pay for vacation rentals in our area. 2 other areas that affect the cost of living is grocery and healthcare costs. Reports indicate that groceries are about 70%— 17% higher than the U.S. average and 14% higher than the Florida average. And it is definitely more expensive to eat out in restaurants here than in some other places. And healthcare costs come in about 6% higher than the national average and 4% higher than Florida. To afford a comfortable lifestyle in Naples, you'll need to have a substantial income. According to the US Census Bureau, the median household income in Naples comes in at $135,000 and some change, almost $136,000, which is 23% higher than the national average. But it isn't all bad news. In fact, EnergySage reports that the average residential electricity rate in Naples, Florida is 22% lower than the average electricity rate in Florida and 39% lower than the national average rate. Also, transportation runs 20% lower in Naples than the national average and 32% lower than the average for the state of Florida. Now, when it comes to property taxes, according to Onwell, the median property tax rate in Naples is 0.91%, which is lower than the national median of 0.99% and lower than the Florida state median of 1.1%. 4%. And let's not forget, one of the more well-known facts is that residents don't have to pay a state income tax. That presents significant financial upside if you're earning a salary or enjoying a pension. The state also offers numerous property-specific tax benefits, such as the homestead exemption for residents who make Florida their primary residence. The reality is that even though Your dollar may not stretch as far as you're used to. It becomes a lifestyle choice. Naples is renowned for pristine beaches, lush tropical landscapes, and world-class golf courses. Residents have access to upscale shopping centers, gourmet restaurants, and culture attractions. Naples' thriving tourism industry and affluent population contribute to a robust economy, which we also benefit from. Naples is recognized as one of the safest places to live, which is priceless. And with the tropical weather, this area offers unique round— year-round rather, active lifestyle. Whether your passion is boating or golfing, walks on the beach, tennis and pickleball, running, cycling, or one of the many other activities you can enjoy, there is something for everyone. So while Naples offers a unique and desirable lifestyle, it's essential to weigh the financial implications before making a final decision. Decision for yourself. If you prioritize luxury amenities, a high-end lifestyle, proximity to beaches, Naples might be a good fit for you. However, if you're on a tighter budget, you may need to consider other options. Moving further inland is one such example. So that's what I have to say about the cost of living in Naples. Again, there's something for everyone. You just have to decide if it's right place for you. I love it here and I wouldn't change it for a moment. Even on those days when I'm complaining about how much my dinner out cost or how much my insurance runs in the hole, it's a perfect place and it's why so many people come here. So don't forget to join me next time when we take on another aspect of Naples living. Again, this is Renee Han, your Naples real estate expert, and you can always find me at YourNaplesExpert.com. Thanks and have a fantastic day!