Naples moves up to No. 1 ranking of second-home markets on Web
By KATHRYN HELMKE
May 25, 2005
Naples' seasonal business continues to thrive despite the area's gradual shift to a year-round destination and living place.
In both March and April, Naples ranked as the No. 1 second-home market, according to EscapeHomes.com, which based the results on more than 200,000 property searches on its Web site during each month.
For February, Naples ranked third behind Myrtle Beach, S.C., and South Padre Island, Texas.
"Naples is offering an attractive balance of things people are look ing for," said David Hehman, president of EscapeHomes, which assists people in their search for a home.
Florida ranks as the most popular state for second homes, he said.
Other Florida cities on April's list include Orlando at No. 3, Destin in the Panhandle at No. 6 and St. Augustine at No. 7.
"We do approximately 30 percent of our business annually to people who are looking for second homes," said Ken Plonski, spokesman for WCI Communities, a Bonita Springs-based luxury home builder that builds all across the state.
WCI has been serving the second-home buyer for decades, and it's essential to the company's business, he said.
The upcoming retirement of the baby boom generation will keep the market growing, Plonski said.
"There's a whopping 77 million of them," Hehman said.
Baby boomers like warm weather and water, and they value their lifestyle, he said. They like good entertainment, which includes restaurants and shopping, and they want quality health care and a range of housing options.
And they are now reaching their prime purchasing years.
Baby boomers hit their peak buying year around age 55, which means they should continue to buy second homes for the next 10 years, he said.
"Second homes are a significant percent of residential real estate transactions," Hehman said.
Nearly 35 percent of all homes sold in 2004 were second homes, he said.
Investment accounted for around 22 percent of that 35 percent, while 13 percent was for a vacation site.
Real estate has become a popular investment, Hehman said.
Other popular second-home destinations are communities near water or in warm weather areas, including California, Arizona and Las Vegas, Hehman said.
Park City, Utah, is gaining in popularity because of the natural beauty, convenience and reasonable home prices.
"Urban areas are popular, especially with the baby boomers because of the restaurants, the entertainment and the amenities," he said.
The pricing in some areas such as Aspen, Colo., or Nantucket, Mass., have caused some cities to drop off the list, Hehman said.
"They're only appealing to people who can spend $3,000,000 to enter the market," he said.
When that happens, people begin looking at nearby towns, Hehman said.
The home prices in Naples continue to escalate, and it is expensive, he said. But it still has a variety of housing in different price categories.
The congestion of an area or a lack of services can also cause problems, he said.
"The quality of life declines," Hehman said. "People may leave to go to another destination."
Every day, Florida gains 1,000 new residents, Plonski said.
In Naples, the increase can be felt on the roads.
"It isn't the developers creating the demand," Plonski said. "It's the people who are moving here."
As long as the sun shines year-round, people will continue flocking to Florida.