Naples Florida Condo Market - Feb 2026

Naples Florida Condo Market
February 2026 Market Report and Buyer’s Guide
A Comprehensive Analysis of Pricing Trends, Inventory Levels, Insurance Costs, HOA Fees, New Legislation, and Investment Opportunities in Southwest Florida’s Premier Condo Market
The Naples Florida condo market is entering February 2026 at a critical crossroads. After years of red-hot appreciation that saw condo values surge during the post-pandemic boom, the market has shifted dramatically toward buyers. Rising inventory, climbing HOA fees, escalating insurance premiums, and sweeping new state legislation requiring structural inspections and fully funded reserves have combined to reshape the landscape for condo buyers, sellers, and investors across Collier County.
For anyone considering buying a condo in Naples, selling a condo in the current environment, or evaluating condominiums as an investment in Southwest Florida, understanding the forces driving this market correction is absolutely essential. This comprehensive February 2026 market report breaks down everything you need to know—from neighborhood-level pricing data and days on market statistics to the impact of Florida’s SB 4-D legislation and the structural integrity reserve study requirements that are fundamentally changing the economics of condo ownership in the Sunshine State.

The State of the Naples Condo Market in February 2026

As of February 2026, the Naples real estate market sits firmly in buyer’s market territory, and nowhere is this shift more pronounced than in the condominium segment. The Fort Myers and Naples area currently reports approximately 9.8 months of condo inventory, well above the six-month threshold that typically signals a balanced market. This elevated supply is giving buyers more negotiating leverage than they have enjoyed in years, and many sellers are responding with price reductions and buyer incentives that were virtually unheard of during the frenzied market of 2021 through 2023.
Here’s a snapshot of where the Naples condo market stands right now:
- Condo inventory: Approximately 9.8 months of supply in the Fort Myers/Naples area, firmly in buyer’s market territory
- Median condo price: Declined from approximately $479,000 in November 2024 to around $466,000 by November 2025, with continued softening into early 2026
- Average condo list price: Roughly $461,693 in January 2026 (influenced by new luxury listings entering the market)
- Days on market: Average of 83 days overall, with many condos sitting for 96 to 112 days or more before going under contract
- Sale-to-list ratio: Average homes sell for approximately 7% below the original list price; hot properties close at about 3% below asking
- Competition level: Multiple offers are rare. Naples is rated as “not very competitive” with homes receiving an average of just 2 offers
The broader Naples housing market tells a nuanced story. While single-family homes in prime locations like Port Royal, Old Naples, and Pelican Bay continue to hold their value and even appreciate in the luxury tier, condominiums across most price points are experiencing persistent downward pressure on prices. The market is effectively operating as two separate entities in 2026—single-family homes climbing steadily in value while condo prices continue to soften.

Why Naples Condo Prices Are Falling and What It Means for Buyers

The decline in Naples condo prices is not the result of any single factor but rather a convergence of several powerful forces simultaneously constraining buyer demand while increasing the supply of available units. Understanding each of these forces is critical for anyone looking to make an informed purchasing or selling decision in this market.

Rising Inventory and the Supply Glut

Active condo listings in the Naples area have surged dramatically. By mid-2025, available inventory hit 14.3 months of supply—a record level that signals serious market oversupply. While the overall Naples market reported approximately 4,746 active listings representing about 8 months of total housing supply, the condo segment has been disproportionately affected.
What’s driving the inventory buildup:
- Owners who were waiting for peak prices have decided to list before values decline further
- Rising costs from new Florida condo legislation are prompting owners to sell, including mandatory reserve funding and structural inspection requirements that have led to significant HOA fee increases
- Special assessments at many communities are pushing reluctant sellers into the market
- Seasonal and investment property owners are exiting as the economics of condo ownership shift due to higher insurance, taxes, and association dues
- Some snowbirds are choosing to rent rather than own, reducing demand for purchase properties

Mortgage Rates Remain Elevated

As of early February 2026, mortgage rates in Florida hover around 6.00 percent for a 30-year fixed conventional loan and approximately 5.42 percent for a 15-year fixed mortgage. While these rates have come down from the peak of nearly 8 percent seen in October 2023, they remain well above the historically low levels that fueled the 2020 through 2022 buying frenzy. The Federal Reserve cut its benchmark interest rate three times during 2025, but mortgage rates have not declined as dramatically as many buyers had hoped, and industry forecasts suggest rates will settle around 6.5 percent by the end of 2026.
These elevated rates have a particularly strong impact on the condo market because a significant portion of condo buyers in the mid-tier price range between $400,000 and $800,000 rely on financing. When combined with rising HOA fees, insurance costs, and property taxes, the total monthly carrying cost of owning a Naples condo has increased substantially—even for units where the purchase price has declined. Cash buyers, who account for more than half of all Naples real estate transactions, are being more selective and demanding greater value for their money.

Insurance Costs Are Reshaping Condo Affordability

Florida’s property insurance crisis has hit the condo market with particular force. Here are the numbers that matter:
- Average annual condo insurance in Naples: Approximately $1,675 as of early 2025, up 19.6% from $1,400 the prior year
- Premium spikes: Many condo properties have seen insurance premiums jump 50% or more over the past two to three years
- Average homeowners insurance in Naples: Around $9,132 per year for $300,000 in dwelling coverage—compared to the national average of approximately $2,544
- Individual HO-6 condo policies: $1,200 to $2,000+ per year, with higher costs on the coast and in older buildings
- Florida’s ranking: Highest home insurance premiums in the entire United States
However, there are emerging signs of stabilization. The Florida Office of Insurance Regulation reported that as of late November 2025, it had received 73 filings for rate decreases and 94 filings for zero percent rate increases from insurance carriers. Florida Peninsula Insurance requested regulatory approval for an average 12 percent rate reduction for condominium owners. The quiet 2025 hurricane season and declining reinsurance costs have helped improve the outlook, but premiums remain elevated by historical standards and continue to weigh heavily on condo affordability.

HOA Fees in Naples: The Hidden Cost That Is Transforming the Condo Market

Perhaps no single factor has had a more profound impact on the Naples condo market than the dramatic escalation of homeowners association fees. The numbers tell a striking story:
- Naples HOA average: $600 to $700 per month, among the highest in all of Florida
- Median condo HOA fee: Approximately $1,000 per month, a 9.6% year-over-year increase
- Luxury and golf community condos: Frequently exceed $1,000 to $1,500+ per month, especially when golf memberships are bundled
- Annual impact: A $1,000/month HOA fee equals $12,000 per year before mortgage, taxes, insurance, or special assessments
What’s typically covered in Naples condo HOA fees:
- Structural and wind insurance for building exterior and common areas
- Water, sewer, and common area utilities
- Landscaping, grounds maintenance, and pest control
- Recreational facilities—pools, fitness centers, tennis and pickleball courts, clubhouses
- Gated entrance and security services
- Basic cable television
- Management company costs and administration
- Trash removal services
- Roof and exterior maintenance
- Reserve fund contributions (now mandatory under Florida law)
The escalation in HOA fees is being driven by several converging pressures. Insurance costs for the master association policy have surged, reflecting the broader Florida insurance crisis. Construction materials and labor costs have remained elevated due to inflation and strong demand for contractor services throughout Southwest Florida. Deferred maintenance at many older condo communities is now being addressed under new state-mandated inspection and reserve requirements, leading to substantial capital expenditure plans funded through either higher ongoing fees or special assessments.
The impact on the condo market cannot be overstated. For a buyer considering a condo with a $1,000 monthly HOA fee, that represents $12,000 per year in association dues alone—before accounting for the mortgage payment, property taxes, individual insurance, and any special assessments. This expense is equivalent to the carrying cost of roughly $150,000 to $200,000 in additional mortgage debt, effectively making the true cost of condo ownership in Naples substantially higher than the purchase price alone would suggest. Many prospective buyers who can afford the purchase price are being priced out by total cost of ownership, suppressing demand and contributing to the downward pressure on condo values.

Florida’s New Condo Safety Laws: SB 4-D, SIRS Requirements, and What Every Buyer Must Know

The 2021 collapse of Champlain Towers South in Surfside, which killed 98 people, fundamentally changed the regulatory landscape for condominium ownership in Florida. In response to the tragedy, the Florida Legislature passed sweeping safety legislation that has far-reaching implications for every condo association, condo owner, and prospective condo buyer in the state. As of February 2026, these requirements are in full effect and are actively reshaping the Naples condo market.

Mandatory Milestone Inspections

Florida now requires periodic structural inspections, known as milestone inspections, for all condominium and cooperative buildings that are three stories or higher. Key requirements include:
- Inspections must be performed by a Florida-licensed engineer or architect
- Initial inspection required when a building reaches 30 years of age (or 25 years if near the coastline)
- Repeat inspections required every 10 years thereafter
- If Phase 1 reveals substantial structural deterioration, a more detailed Phase 2 inspection with material testing is required
- All inspection reports must be shared with unit owners and filed with state authorities
- Reports are now part of the official association record and must be provided to prospective buyers

Structural Integrity Reserve Studies (SIRS)

In addition to milestone inspections, Florida law now requires condominium associations to complete a Structural Integrity Reserve Study. This specialized study evaluates the condition and remaining useful life of critical structural components and calculates the funding needed to cover future repair and replacement costs.
The SIRS examines eight specific structural elements critical to building safety:
- Roof
- Load-bearing walls and primary structural members
- Floors
- Foundations
- Fireproofing and fire protection systems
- Plumbing systems
- Electrical systems
- Waterproofing and exterior painting
- Any other structural component exceeding $25,000 in replacement cost that impacts structural integrity
The deadline for completing the initial SIRS has been a moving target. The original 2022 legislation set a deadline of December 31, 2024, which was extended to December 31, 2025, through HB 913. Associations whose milestone inspections are due by December 31, 2026, may complete the SIRS simultaneously, but the absolute final deadline is December 31, 2026. By that date, every condo association in Florida with buildings three stories or higher must have a current SIRS in place—no exceptions.

Mandatory Reserve Funding: The End of Waivers

Perhaps the most financially impactful provision is the requirement that associations must fully fund reserves for structural integrity items identified in their SIRS. Here’s what changed:
- Before the reforms: Associations routinely allowed unit owners to vote to waive or underfund critical reserves, keeping monthly fees artificially low
- The Surfside reality: Champlain Towers South’s reserves were reportedly only 7% funded at the time of collapse
- Effective January 1, 2026: Associations must begin funding SIRS reserves in accordance with their reserve study recommendations
- No more waivers: For buildings three or more stories, owners can no longer vote to reduce or skip reserve contributions
- Full funding required: 100% of projected structural repair costs must be allocated (e.g., $500,000 over 10 years = ~$50,000/year)
- Limited exception: Associations actively completing milestone repairs may vote to temporarily waive SIRS funding for up to 2 years (no later than 2028)

Special Assessments: The Financial Shock Wave

The combination of mandatory inspections, required reserve funding, and years of deferred maintenance has resulted in a wave of special assessments across Florida. While Naples has not seen the most extreme cases, the broader market provides sobering examples:
- The Cricket Club, North Miami: Special assessments as high as $134,000 per unit in 2024
- Mediterranean Village, Aventura: Some owners assessed up to $400,000
For prospective condo buyers in Naples, understanding the association’s financial health, reserve study results, and potential for future special assessments is now more critical than ever. Properties in associations with well-funded reserves, completed structural inspections, and a history of proactive maintenance are commanding premium prices relative to comparable units in financially distressed associations.
Beginning January 1, 2026, all associations with 25 or more units must also maintain a secure website or mobile app providing owners access to official records, including SIRS reports, inspection records, and financial statements—adding a new layer of transparency that benefits both owners and prospective buyers.

Naples Condo Market by Neighborhood: Where Are the Opportunities in February 2026

The Naples condo market is not monolithic. Pricing, inventory levels, and market dynamics vary significantly by neighborhood and property type. Understanding these differences is essential for identifying the best opportunities in the current market.

Luxury Condos West of US 41

The luxury condo market along the coast tells a different story than the broader market:
- Luxury condo closed sales dropped approximately 27% year over year by October 2025
- Inventory grew 31%, creating roughly 15 months of supply
- Ultra-luxury properties above $5 million continue to show robust demand and record sales
- Luxury single-family home sales in the same area increased 30% with average prices up 21% to $6.1 million
- Vanderbilt Beach condos posted ~20% price appreciation, bucking the broader trend
- Old Naples condo values experienced a 26% price correction
- Royal Harbor saw a 19% decline
The takeaway for luxury condo buyers: location and building quality matter more than ever. Well-positioned waterfront condos in the most desirable communities continue to hold their value, while even affluent neighborhoods face corrections when properties aren’t priced competitively or face significant association cost increases.

Mid-Range Condos: The $400K to $800K Sweet Spot

The mid-range condo market has been the most significantly impacted segment. This price tier is where the convergence of elevated mortgage rates, rising HOA fees, increasing insurance costs, and new reserve requirements has the greatest effect on buyer affordability. Properties in this range depend heavily on financed buyers who are more sensitive to total monthly carrying costs.
Central Naples communities seeing the most impact include Berkshire Lakes, Glen Eagle, The Vineyards, and Lely Resort. Lely Resort experienced a 93 percent increase in active listings. Buyers in this segment have significant negotiating leverage and should expect to pay 5 to 10 percent below asking prices with assertive but reasonable offers.

Entry-Level Condos Under $300,000

Entry-level condos under $300,000 represent perhaps the most challenged segment. These properties tend to be in older buildings with higher maintenance costs, rising insurance premiums, and the most significant exposure to new structural inspection and reserve requirements. Recent February 2026 sales data illustrates the opportunity:
- Vanda Sanctuary (2BR/1.5BA, 876 sq ft): Sold for $169,250—5% below the $179,000 list price after 21 days on market
- Vanda Sanctuary (2BR/1.5BA, 912 sq ft): Sold for $120,000—4% under the $125,000 asking price
- Shadowood Circle (3BR/2BA, 1,350 sq ft): Closed at $350,000—a full 8% below the $379,000 list price after 123 days on market
- Sanctuary Drive (3BR/2BA, 1,742 sq ft): Sold for $403,000—1% under $408,000 list after 112 days
Buyers in this segment must be particularly diligent about reviewing association finances and building conditions. A low purchase price means nothing if the building faces $50,000+ in special assessments over the next few years.

Golf Community Condos

Naples is renowned for its world-class golf communities, and condos within these developments have their own distinct dynamics. Golf community condos often carry the highest HOA fees in the Naples market, frequently exceeding $1,000 per month when memberships are included. Talis Park posted 19 percent price appreciation, demonstrating that well-managed, premium golf communities can still deliver strong returns.
However, buyers must carefully evaluate total cost of ownership beyond the HOA fee, including mandatory golf or social membership fees, dining minimums, capital improvement assessments, and other club charges that can add thousands per year on top of already substantial dues.

Investment Outlook: Should You Buy a Naples Condo in 2026

The investment calculus for Naples condos in 2026 requires a fundamentally different approach than what worked during the appreciation-driven market of recent years. https://agentsgather.com/naples-florida-condo-market-feb-2026/