Naples leads US in apartment construction boom

Data on apartment construction shows how Collier County stacks up with other national cities. Naples, best known as a destination for luxury second homes, gated communities and waterfront villas, is now notable for growth in the apartment construction sector, as well. 

According to a recent RentCafe Apartment Construction Report, “Florida remains a construction powerhouse in 2025, second only to Texas in new apartment deliveries. While some markets are cooling after last year’s record highs, others are seeing historic growth — underscoring the diversity of Florida’s housing story.”  

RentCafe.com is a nationwide apartment search website that uses original city-based research and analysis to examine the real estate market. Its most recent report names Naples as the fastest growing metro area in the U.S. for apartment construction. Completions were up 275%, coinciding with the town attracting younger work-from-home residents. The report projects 62,184 new apartments will open by end of 2025 in the Naples area.  

Veronica Grecu, senior real estate writer and research analyst at RentCafe, who authored the report, said, “Naples is undergoing a clear shift in population and migration trends, and the area is no longer just a seasonal destination.”  

Growth in the Naples apartments sector is, in fact, part of a bigger trend.  

“Developers are responding to rental housing needs across the entire South, which is projected to deliver more new apartments this year than any other U.S. region,” Grecu said. 

RE/MAX Realtor Michael Shoaff has encountered some backlash about this new trend.  

“I hear a lot of negative comments from longtime residents about the size and boxy, sterile look of many of these new apartment buildings,” he said. “I understand the sentiment, but I actually see this growth as a positive development for real estate affordability in Naples.” 

Affordability still seems to be an issue to many families hoping to call Naples home. The growth in apartment construction shows how the area is adapting to accommodate those priced out of home ownership. With a consistently tight housing market, many are pushed toward rental living. 

Shoaff understands how difficult it can be for some to buy a home in the area. The availability of affordable rentals is a welcome option for many.  

“High interest rates, elevated home prices and a softer market mean that buying only makes sense if someone is paying cash or putting down a substantial amount and planning to stay long-term,” he said. 

More people, including those who RentCafe’s Grecu labeled “millionaire renters,” are making Naples their primary or semi-primary home. “Beyond its reputation for luxury and golf courses,” she said, “what really stands out to newcomers is Naples’ exceptional livability; the climate, tax advantages and overall quality of life.”  

The lifestyle attraction has coincided with business leaders strategizing how best to attract residents to the Naples area. “As part of the Greater Naples Chamber of Commerce push to boost the local economy by attracting remote workers, demand for apartments has increased sharply over the last couple of years,” Grecu said. “On top of that, the seasonal flow of tourists and part-time residents has created strong demand for rental housing in Naples, making apartments appealing to investors seeking steady returns, especially in high season.”  

Homeownership is a challenge to many hoping for a mortgage. For the first time in years, it’s cheaper to rent than to buy. In the past, many buyers were motivated to purchase because renting was expensive and the supply of rentals was limited. Shoaff reflected on that past: “When interest rates were historically low, it made monthly payments manageable, and steady appreciation year after year made buying almost a no-brainer.” 

But as the financial climate continues to fluctuate, construction of apartment complexes is opening up a new level of residential possibilities for those interested in Southwest Florida. 

Shoaff is optimistic about this trend.  

“The increased supply of apartments in Naples is helping to create more rental options, which is a good thing,” he said. “I expect rental rates will begin to adjust as more of these large complexes come online.” 

Grecu concurred.  

“Apartments offer the flexibility, low-maintenance lifestyle and modern amenities that appeal to retirees, second-home owners and long-term renters alike.”