Fort Myers, Sarasota metros among top 10 hottest housing markets in the nation

Laura Layden, Naples Daily News
·3 min read

A handful of Florida metros are among the hottest housing markets in the country.

That's according to a study by Bankrate, a personal finance website.

Here's a look at the Top 5 metros based on the consumer site's "Housing Heat Index" study for 2023.

  1. Gainesville, Georgia

  2. Knoxville, Tennessee

  3. Cape Coral-Fort Myers, Florida

  4. North Port-Sarasota-Bradenton, Florida

  5. Charlotte-Concord-Gastonia, North and South Carolina

Rounding out the Top 10 are these metros, including two more in Florida:

  • Charleston-North Charleston – No. 6

  • Nashville-Davidson-Murfreesboro-Franklin, Tennessee – No. 7

  • Punta Gorda, Florida – No. 8

  • Tampa-St. Petersburg-Clearwater, Florida – No. 9

  • Wilmington, North Carolina – No. 10

Other Florida metros in the Top 30 are Orlando-Kissimmee-Sanford (12), Jacksonville (15), Deltona-Daytona Beach-Ormond Beach (16), Ocala (17), Palm Bay-Melbourne-Titusville (18), Lakeland-Winter Haven (20), and Port St. Lucie (29).

Both Fort Myers and Sarasota appeared on Bankrate's list of the Best Places to Live in the U.S. for 2023. So did Port St. Lucie.

More like this: Naples is 6th best place to live, according to U.S. News & World Report. Sarasota is 5th.

Earlier: Best places to live 2022: Naples, Fort Myers fall in U.S. News annual rankings

How is 'market hotness' determined?

Bankrate's index measures a metro’s housing availability and competitiveness to determine its "market hotness.”

Here are the factors considered: home appreciation, one-year job growth, population growth, active listings, days on market and unemployment rate.

Gainesville, Georgia only showed signs of weakness in one area: It ranked 172nd in active listings. It came in fourth overall for home appreciation and performed above average in job and population growth, as well as unemployment.

The northernmost metro in the rankings, Knoxville came in sixth in home price appreciation and 35th in population growth. It scored in the Top 100 elsewhere, which helped propel it into second place.

By comparison:

  • Cape Coral-Fort Myers came in at fifth in price appreciation and eighth in population growth, but 207th in active listings, lowering its overall ranking.

  • North Port-Sarasota ranked second in price appreciation and 12th in population growth — but 206th in active listings.

  • Charlotte-Concord came in at 15th in price appreciation and 41st in population growth and it tied for 44th in days on market. It ranked 120th in active listings.

"Take lower-cost and lower-tax areas that continue to add population, add in limited inventory of homes for sale, and you have the recipe for housing market strength," said Greg McBride, a chief financial analyst for Bankrate, in a statement.

While it continues to see population growth and price appreciation, Naples-Marco Island didn't fare as well, ranking at No. 60, with weakness in job growth, active listings and days on market.

This is a view from the most expensive home sold in Lee County in April 2023.
This is a view from the most expensive home sold in Lee County in April 2023.

Smoking hot markets: Southeastern U.S. reigns supreme

The 10 metros with the hottest housing markets are all in the Southeastern United States.

In a statement, Bankrate analyst Jeff Ostrowski, said the momentum in the housing market has "shifted to the Sunbelt," especially to Georgia, the Carolinas and Florida.

"While many parts of the U.S. are experiencing price declines,home values have held steady in the Southeast. This region's comparatively affordable prices are attractive to buyers moving in from more expensive parts of the country – but the still-strong values create challenges for first-time buyers," he said.

Jeff Ostrowski, Bankrate.com
Jeff Ostrowski, Bankrate.com

On the other end of the spectrum, these metros ranked as the "coldest" housing markets in the country:

  • Pittsburg, Pennsylvania

  • Cedar Rapids, Iowa

  • Medford, Oregon

  • Shreveport-Bossier City, Louisiana

  • Chico, California

With a population of about 208,000, Chico ranked low across the board: 206th in days on market, 205th in price appreciation, 203rd in population growth, 188th in employment (tied), 169th in job growth (tied) and 123rd in active listings.

Bankrate uses data from a variety of sources to compile its index, including the Federal Housing Finance Agency, Realtor.com, the U.S. Bureau of Labor Statistics and the U.S. Census Bureau.

This article originally appeared on Naples Daily News: Fort Myers, Sarasota metros rank among Top 5 in "Housing Heat Index"