What the Latest Regional Economic Research Institute Report Reveals About Estero and Southwest Florida
Each month, the Regional Economic Research Institute (RERI) at Florida Gulf Coast University publishes a report on our local economy. The August 2025 edition provides insight into how the region continues to recover from recent hurricanes and how Estero is faring compared to other municipalities in Florida. The following notes summarize the key points of the report.
Home Prices and Listings Take a Dip
For the first time in the last few years, residential real estate prices across Southwest Florida are trending downward. It’s not a dramatic drop, but it’s noticeable—and it’s paired with a decline in new listings. Fewer homes are hitting the market, which could signal some hesitation among sellers or a cooling of demand after years of post-pandemic growth. It’s something to watch, especially as mortgage rates remain elevated.
The Hospitality Industry is Hurting
The hospitality industry, a significant economic driver in our region, is still struggling to return to its former level of employment and profitability. In Sanibel, Captiva, and Fort Myers Beach, the number of available hotel rooms is still down by an estimated 2,500 compared to pre-Hurricane Ian levels.
Recovery and rebuilding are taking much longer than expected, and that’s having a domino effect: fewer visitors mean less tourist tax revenue, which slows reinvestment and prolongs the pain.
Construction, Education, and Healthcare Step Up
There’s some good news in the job market, though. While employment in hospitality has slipped, other sectors are picking up steam. Healthcare, education, and construction are all showing solid growth.
These are foundational industries that not only provide stable jobs but also contribute to long-term community expansion and economic recovery. This benefits the area’s appeal and results in increased home values.
Four Major Projects Starting in Estero
Even though the RERI report doesn’t provide detailed numbers specific to Estero, we know from local observation that four significant developments have recently broken ground. This signals continued confidence in our area’s future—and a boost to local jobs, services, and tax revenues in the near term. Engage Estero will be producing its 6-monthly update on the residential and commercial developments taking place in Greater Estero in September.
This information will be part of our Greater Estero Community Report, the third for 2025. At our Community Monthly Meeting open to the public on September 26, Mary Gibbs Estero’s Community Development Director will be providing an update on several of the major developments currently being commenced in Estero. The meeting will be held at the Estero Recreational Center, beginning at 10 am.
Estero’s Careful Financial Management
One of the more promising results to report is that the Village of Estero’s tax revenues are continuing to improve. That is the result of rising property valuations from residential turnover and new commercial development. This trend is expected to continue as new significant developments come online.
Why This Matters
Understanding the shifting economic landscape helps us make smarter decisions—whether we’re homeowners, business owners, or invested residents. As always, Engage Estero will continue tracking these trends and will offer guidance and recommendations based on thorough research and objective evaluation.
If you would like to explore the complete data set, please let us know. View the full RERI report here (PDF) or check out the interactive dashboard.
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Written by
Terry Flanagan
Vice President of Administration
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At Engage Estero, we believe in the power of community. As a nonpartisan, nonpolitical, nonprofit, we conduct evidence-based research to provide unbiased information about local issues, helping you improve your quality of life.