Courtesy: The News Press\Cape Coral-Fort Myers, Florida
The Cape Coral-Fort Myers economy was second worst in the country, according to a survey released Wednesday – but there are some tentative signs that things might be turning around.
According to the Washington-based private, nonprofit Brookings Institution, among the top 100 metro areas, Cape Coral Fort Myers:
- Was dead last in change in gross metropolitan product from the peak in the third quarter of 2006: down 15.5 percent.
- Had the highest percentage of homes taken back in foreclosure by lenders: 21.02 per 1,000 mortgageable properties.
- Fared worse overall than any metro area except Boise, Idaho (Augusta, GA, was best).
This area’s bad rating was due in part to a stark 8 percent increase in unemployment in the past four years, but Barbara Hartman, spokeswoman for Southwest Florida Works in Fort Myers, said there’s been a slow, fitful recovery in recent months.
Unemployment peaked at a record 14.2 percent in January, she said, but it’s slowly decreased since then. October, the last month available, had a 12.9 percent rate.
The jobs lost here were a result of the home-building crash that followed the implosion of prices in 2006, Hartman said. “The bottom fell out. That affected every other industry.”
But now the jobs picture isn’t all bleak, she said. “The main industry sector keeping us afloat is health/education, mainly medical. Anything medically related like registered nurses, licensed practical nurses, occupational therapists.”
There have also been signs recently that the leisure and hospitality industry has been starting to come back, too, she added, and small businesses are hiring more.
Dr. Michael Collins, a Fort Myers-based eye surgeon who’s moving into a larger building this month to keep up with an increase in business, said his field is staying strong because “People still have eye problems, still have health problems. Without your health, what do you have?”
As for the big numbers of bank-owned foreclosure properties, there are two ways to look at that, said Jeff Tumbarello, a real estate agent with Steelbridge Realty and director of the Southwest Florida Real Estate Investors Association.
Because of the resulting low home prices, he noted, this is one of the most affordable places in the country to buy a house. “You can buy a house in either Cape Coral or Lehigh Acres if you make $30,000.
Bank-owned homes make up about 40 percent of sales nowadays, with short sales at 15 percent and conventional sales 45 percent, Tumbarello said.
Ironically, he said, the area was seen as having a healthy economy when the boom was inflating prices to an unsustainable level and now “Everybody is hammering a sustainable market.”