Florida has long had an association with luxury and retirement, and Naples even more so. When you hear the name, you might envision waterfront homes, golf clubs, and gated communities. Naples has historically been attractive to wealthy baby boomers, second-home buyers, and seasonal visitors. Sometimes, the most luxurious segments (Port Royal, Gulf Shore Boulevard) have made headlines with their sky-high real estate prices.
But times have changed, and even luxury real estate isn’t immune to larger trends in the market. Demographics shift, interest rates fluctuate, and climate change is playing an ever-bigger part in the equation. So is Naples still synonymous with luxury? Let’s take a hard look.
Current Housing Trends in Naples
First, let’s dig into what the numbers say about the housing trends in Naples. According to Movoto.com, the median home price in Naples as of 2025 is $724,003. Homes on the market in Naples tend to remain on the market 205 days, up from 196 days the previous year. Active listings in Naples are quite high: 6,460 active listings and 387 new listings in the most recent snapshot of the area.
This suggests that the market has cooled somewhat compared to 2021-2022. There’s more inventory, and homes tend to be on the market longer, giving buyers a bit more leverage.
Things get even sharper when one gets into luxury property in Naples. For example, in the market above $2 million, luxury properties were averaging 112 days on the market in July 2025, with an average of 7.5% price reduction. High-end luxury homes are going for steep prices per square foot — between $1200 and $1800 per on the waterfront, up to $3,000 in areas like Port Royal.
Buyer Types and Demand Drivers
Now let’s glance at who’s actually buying Naples real estate right now. It’s primarily:
- Retirees and out-of-state buyers who are looking for warmer weather, access to amenities like golf and boating, and an overall lifestyle upgrade.
- Investors and second-home buyers who are looking for a seasonal place to stay — or just collect some assets.
- Younger, more affluent buyers, who are flowing in as remote work takes some of the constraints off the job market. Rather than buying vacation homes, these buyers may be looking for a place to put down roots, wanting an environment with a high quality of life.
Naples’ well-deserved reputation as a second-home hotspot does a lot to shore up luxury demand. Buyers with ultra-high net worth continue to show interest in Naples’ more premier locations. Agents are seeing strong showings in waterfront and resort-style properties in particular, especially if they have good amenities and stunning views.
Finally, it’s worth noting that historically, Naples has seen strong appreciation, often showing multifold gains over a decade.
Challenges Facing the Naples Luxury Market
At first glance, it would seem Naples’ place in the luxury market remains undefeated. But even though it still has those luxury credentials, there are some headwinds moving in.
For one, high interest rates affect luxury buyers too. Elevated borrowing can put a damper on buyer enthusiasm, especially when combined with inflation and general economic uncertainty.
There’s also evidence of excess inventory and cooling demand in Naples. According to some sources the average home value in Naples is down over 7% year-over-year, and resale inventory is around 11 months — which means buyers have more options and more leverage, which means a blow to the aura of exclusivity.
As previously noted, Naples homes are having more days on the market and price cuts, and climate and insurance risk are rising fast, which may be acceptable to wealthy buyers — but it can impact pricing and overall buyer sentiment.
Finally, there’s the fact that overall rising home prices could mean an affordability squeeze in the mid-tier market. While the widening of the gap between what a local income can support and the going price for a Naples home is unlikely to affect the ultra-luxury end, it could have an overall cooling effect on the market.
Final Thoughts
So what’s the bottom line? Is Naples still a luxury market in 2025? Overall, all the signs point to yes, but with a few qualifications. The ultra-luxury segment of the market (waterfront compounds, Port Royal, etc) are doing fine, with strong demand from both global and domestic clients, but the market is balancing out. Where it was once a seller’s paradise, the trend in the non-luxury, mid- and upper-tier markets is toward buyers having more leverage. Inventory is high and with that comes the pressure to lower prices in order stay competitive.
What does the future hold for the Naples real estate market? It’s likely to continue to show selective strength in the upper-end submarkets, cooling or flatness in the larger luxury landscape, and a greater divide between the two.
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