What Will the 2025 Housing Market Look Like for Fort Myers? Zillow’s Predictions Explained

If you’re planning a move to Fort Myers, Florida, or already living here and thinking about buying or selling, you’re probably wondering what’s in store for the real estate market. Zillow recently released its 2025 housing market predictions, and they highlight some key trends that could shape the way you approach real estate in Southwest Florida.

In this post, we’ll break down Zillow’s six major forecasts and what they mean for buyers, sellers, and renters in Fort Myers.

1. Home Prices Will Continue to Rise (But More Slowly)

Zillow predicts that home values will increase by 2.6% nationwide in 2025. While this is a softer growth rate than in previous years, it’s still a sign that prices aren’t expected to drop significantly.

For Fort Myers buyers, this means homeownership is still a sound investment, but you’ll need to act strategically to find the best deals. For sellers, the market is stabilizing, making it a good time to list before interest rates potentially shift again.

Key Insight for Fort Myers:

• More sellers are expected to list their homes, increasing inventory and giving buyers more choices.

• The demand remains strong, but bidding wars may become less common than in the past few years.

2. Mortgage Rates Will Stay Volatile

Zillow expects interest rates to end 2025 lower than they are now, but the journey will be unpredictable. Buyers waiting for rates to hit the 5% range may need to reconsider their strategy, as we’re currently seeing them hover between 6% and 7%.

What This Means for You:

• If you’re buying in Fort Myers, focus on affordability rather than trying to time the lowest rate.

• Sellers should be prepared for cautious buyers who may negotiate harder due to financing costs.

3. Fort Myers Could Shift Toward a Buyer’s Market

With the COVID-era real estate boom slowing, Fort Myers and other southeastern cities may experience a shift in market dynamics. Increased inventory and higher interest rates could tip the scale in favor of buyers.

However, if rates drop more than expected, this could quickly reverse—so buyers should stay informed and act when the timing feels right.

4. Rental Deals Will Disappear

In recent years, new construction apartment complexes in Fort Myers led to fierce competition among landlords, offering perks like free rent for the first month or reduced deposits. Zillow predicts these incentives will fade as supply stabilizes.

Tips for Renters in Fort Myers:

• If you’re looking to sign a new lease, act fast before incentives disappear.

• Consider negotiating lease terms now before demand picks back up.

5. Pet-Friendly Rentals Will Become the Norm

A growing number of property managers now cater to pet owners, with Zillow reporting that 60% of renters have pets, up from 46% pre-pandemic.

What This Means for Fort Myers:

• If you own rental property, allowing pets may expand your tenant pool and increase rental income.

• If you’re renting, expect more pet-friendly options but fewer rental concessions.

6. Smaller Homes Will Gain Popularity

With affordability challenges persisting, many buyers in Fort Myers are shifting their focus from “forever homes” to smaller, more budget-friendly properties. The high cost of home insurance and property taxes in Florida is also making compact homes more attractive.

Fort Myers Buyer Tip:

• Consider a starter home and build equity rather than waiting for your dream home.

• Look for smart layouts that maximize space without increasing costs.

What’s Next for Fort Myers?