Naples, Florida: A City for the Rich, but Not for its Essential Workers

Naples, a city in Florida’s Gulf Coast, is one of the most expensive places to live in the United States, as housing prices soar and affordable housing dwindles. The city, which is home to the second-richest ZIP code in the country, has a median household income of approximately $125,000, compared to $62,000 in the rest of Florida. Due to the high cost of living, 90% of city employees live outside of Naples, creating a chronic shortage of essential workers, such as firefighters and police officers, leading to unsafe conditions. Additionally, a lack of affordable housing in the area is also causing staffing shortages in hospitals and restaurants.

During the pandemic, Naples experienced a boom in sales of opulent homes, with median sale prices rising by nearly 30% in 2022, and the average closing price of a home reaching $1.1 million in December. A major challenge for Naples is that the housing market is not keeping up with the demand, leading to a severe shortage of affordable housing options. The city’s housing problems were further exacerbated by Hurricane Ian, which caused damage to thousands of homes in the area.

While the city is undertaking several ambitious projects, such as the opening of a $100 million high school and the redevelopment of a beachside resort into a Four Seasons hotel and luxury residential community, the city is facing challenges in retaining and attracting staff due to the high cost of living. There are currently 60 vacancies in a workforce funded for 510 employees, and almost one-fourth of employees at the county sheriff’s office live outside Collier County. To address the housing issue, some employers have had to get creative, with NCH Healthcare System making 20 units available at the Super 8 hotel, and striking deals with residents who have second homes in Naples and are willing to rent to physicians or nurses.

Ultimately, fixing the housing problem in Naples is costly and divisive. The city government is struggling to retain and attract staff, and affordable housing is in short supply. While the city has experienced significant growth in the last few years, there is still much work to be done to address the housing crisis and to ensure that the city can continue to attract and retain workers across a range of professions.