OVERVIEW

High Growth Naples/Collier County

The baby boomers are coming and there are 79 million of them in the US alone. They are the massive number of individuals born between 1946 and 1964. This generation is benefiting economically by their relatively high incomes, retirement savings and the equity buildup in their homes. In addition they are the inheritors of their parents' wealth, a World War II generation of hard workers and savers, who are known for their sacrifice and savings. It is estimated that this inheritance will total $10 trillion The baby boomers differ from their parents. They have money and the mentality to spend it.

What are they seeking as they approach the time in life when they may enjoy the fruits of their labor and savings? For many the answer is a pleasant climate, recreational, and continuing educational opportunities. In short many have chosen and will continue to choose the lifestyle of Southwest Florida!

The growth of Naples (Collier County, Florida) Metro Market (MSA) has shown impressive expansion. In fact from 1990 to 2003 the growth in the permanent population was 190%; between 2000 and 2003 the growth was 15% and by 2030 it is projected to grow another 191%. The 2003 population was 290,000 permanent residents, while it increased to 401,000 during the winter season. The number of households is projected to grow by 22% from 119,000 in 2003 to 152,000 in 2010. (University of Florida Bureau of Economic and Business Research).

The Naples MSA was ranked:

' 2nd Fastest Growing in the USA from 1980 to 2000 (U.S. Census Bureau 4/01)
' 3rd Best Metro for Standard of Living in the US (Expansion Management Magazine 5/03)
' 1st in Job Growth for Small Places in the US (Forbes Best Places in America, 5/03)
' Highest Median Household Income in Florida and 29th Highest of the 323 MSAs in the US (Sales and Marketing Management, 2002 Survey of Buying Power 9/02)
' 11th Highest per Capita Income in 2001 in the US (Bureau of Economic Analysis, 5/03)
' Highest Housing Growth Ratio in the US which is nearly 5 times the national average (Meyers Group, 2003)

As a result of the dynamic growth, Collier County's labor force grew from 87,000 in 1997 to 117,000 in 2002, a 34% increase. Comparable growth figures were 14% and 6% for Florida and the US, respectively.

Residential Property in Collier County has also experienced significant increases in value. As of 2002, the average sales price of single family homes was $341,000 and for condominiums, $310,000. About 90% of all single family and condominiums sold for over $100,000 (Collier County Property Appraiser 7/03). Since then values have continued to escalate. In 2004 the median home sale increased 42%to $389,000, nearly $100,000 over the second-highest median priced home in Florida (Florida Association of Realtors / Naples Daily News 10 April, 2004).

Total Market Value of Real Property in Collier County has expanded from $29.8 to 57.8 Billion between 1999 and 2003, an increase of 94%. This is a result of growth in both the number of units and the average unit value. For the same period the Value of New Construction grew from $1.2 to 2.7 trillion (Collier County Property Appraiser 7/03).

The long term trend is very clear for the demand of real estate and pricing in this area. UP!

Doug DeCaster

www.invest-in-florida.com

239-348-7942