Florida’s real estate market might be catching its breath—but Naples isn’t slowing down.

A new third-quarter Market Trends Report from Fort Myers-based LSI Cos. shows that while overall residential building permits across Southwest Florida dropped 13% year-over-year, Collier County—home to Naples—was the only county still gaining ground.

Across Charlotte, Lee, and Collier, just over 22,400 new residential permits were issued in the year ending September 2025, compared to 25,800 the year prior. The pullback reflects a broader normalization after the post-pandemic construction boom.

But Naples continues to beat the odds:

  • Collier County (+11.4%) led the region with 4,124 new permits.

  • Lee County (–8.2%) cooled to 14,995 permits.

  • Charlotte County (–43.1%) saw the sharpest drop, falling to 3,284 permits.

“The region is recalibrating to sustainable demand levels consistent with its long-term demographic base,” LSI analysts wrote.

The report notes that Florida housing starts are expected to stay flat through 2026 as the market stabilizes—something LSI calls healthy, not bearish. Fewer permits mean fewer material and labor constraints, and that helps lay the groundwork for the next cycle of growth.

Naples’ resilience, meanwhile, continues to separate it from the pack. The city’s steady influx of affluent buyers and developers has kept cranes in the sky even as its neighbors pump the brakes.

📊 Residential Permits — Oct 2024 to Sept 2025

County

Permits

YoY Change

Charlotte

3,284

–43.1%

Collier (Naples)

4,124

+11.4%

Lee

14,995

–8.2%

Bottom line: Southwest Florida’s housing market is normalizing—but Naples is proving it can still rise above the rest.