Which Zip Code Has Seen the Most Price Cuts in SFR Listings?

Which Zip Code Has Seen the Most Price Cuts in SFR Listings?

Florida boasts some of the markets with the highest levels of price change activity in inventory held by large SFR operators (100+ units). Zip code 33993 has captured our attention for several reasons:

• Over the last 6 months, 82 percent of the listings in 33993 have experienced a price cut.
• This zip code also leads in terms of total inventory listed, with more than 60 units offered in the past six months by 100+ unit operators.

What Is Happening in 33993?

In a previous analysis of price cuts by large SFR operators, we highlighted how Florida is one of the markets witnessing a significant portion of inventory receiving price cuts. Cape Coral is at the epicenter of this price adjustment, and 33993 exemplifies this phenomenon:

• The concentration of SFR ownership in this zip code is above the average in Cape Coral, accounting for 4.6% of the total housing inventory and is part of a group of zip codes with a substantial presence of SFR operators.
• Over the last 6 months, 100+ unit portfolios have offered more than 60 units for sale, and of these, more than 80 percent have undergone a price modification.

• The increase in offerings and decrease in prices is accompanied by a general downturn in the market, as illustrated by the Investor Purchase to Sale Ratio, which has been below 1, indicating a seller's market.
• The median rental price across the region has also been on a downward trajectory since October 2022.
• While 33993 is the focus of our analysis, other zip codes are also worth paying attention to. Zip codes 33991 and 33909 are also experiencing generalized price cuts.

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