Guest Commentary | Rebuilding the job market will correct Southwest Florida’s housing market
The Wall Street Journal published a front-page story on July 2 noting one Florida city has the “worst housing market in U.S.”
That city was Cape Coral.
Although the story calls out the Cape, the numbers are indicative of Southwest Florida as a whole. Our housing market indeed is struggling. Home prices for the Cape Coral-Fort Myers metropolitan area have fallen 11% over the past two years, the largest of any metro in America. The story calls out an abundance of “For Sale” signs dotting the landscape, open houses with nary a prospective buyer in sight and listing prices that continue to drop.
The lackluster housing market isn’t a problem in and of itself. The housing market is tied directly to our economy, and specifically our job market.
As Southwest Floridians know, our region’s job market took a substantial blow when Hurricane Ian devastated the region in 2022. Subsequent storms – particularly Helene and Milton in 2024 – caused further setbacks. In a tourism-friendly, eco-driven economy like ours, Mother Nature can be our biggest ally… she can also pose our biggest challenge.
Fort Myers Beach, Sanibel and Captiva are facing a long road to recovery. The SanCap Chamber, for instance, has celebrated 119 ribbon-cutting ceremonies since Hurricane Ian. Many are small, locally owned businesses. Although every job created or restored helps the economy, the region’s major employers are the ones who truly drive this economy. When Lee County’s top five employers – Lee Health, The School District of Lee County, Lee County Government, Publix and Chico’s – are growing, the region thrives.
Before Hurricane Ian, South Seas on Captiva was a top-20 employer in Lee County, supporting 400 permanent, direct onsite jobs. Most of its employees live off island, predominantly in Fort Myers and Cape Coral – the area specifically cited by the Wall Street Journal. They own homes there, shop there, dine there and have fun there.
Currently, South Seas employs 197 as its redevelopment process commences in phases. The resort celebrated its grand reopening in May that highlighted new and enhanced dining options, renovated pools, water sports, beach services, fitness amenities, The Clutch Golf Course, Bayview Pier, the Shops at South Seas and more.
South Seas’ redevelopment plans are still under review by Lee County. If fully approved, the resort’s redevelopment would include new multi-family units, hotel rooms and recreational amenities. Most importantly, the full redevelopment would lead to 813 permanent, direct onsite resort jobs by 2029 – more than doubling the pre-Ian workforce. Including indirect and induced jobs related to South Seas would result in 1,918 total jobs, a 132% increase over the 2022 number.
The economic impacts would be profound. Post redevelopment, South Seas would generate an estimated property tax base of $697.4 million, resulting in annual property tax revenues for Lee County taxing jurisdictions amounting to $9.8 million and tourist tax revenue of $7.2 million.
South Seas estimates its out-of-pocket redevelopment costs at $973.5 million. That’s not just an investment into the resort property… that’s an investment into Southwest Florida’s economy. Our region’s recovery from Ian isn’t just about rebuilding homes and businesses damaged by the storm; it’s about rebuilding a healthy economy and creating a robust workforce. Hopefully the next headline in the Wall Street Journal will introduce America to the community that bounced back, and then some, from one of the country’s worst natural disasters.
Greg Spencer is president of the South Seas Ownership Group.
To reach GREG SPENCER, please email news@breezenewspapers.com