The Real Cost of Living in Naples

Are you wondering how much it costs to live in Naples, Florida? Follow along as we discuss the essential factors of the cost of living in this city, like, housing prices, food costs, utilities, and more.

This city is extremely unique. Naples, Florida, is considered one of the nation's wealthiest cities. It is known to be the home to the second-highest amount of millionaires. Naples is one of the most desired places to live in Florida and is ranked sixth highest per capita income in the country. 

Naples, Florida, is located in the southwestern part of Florida along the Gulf of Mexico. People love moving to Naples because of its high-end shopping, the abundance of golf courses, and some of the most beautiful beaches. Another great thing about Naples which attracts many residents and visitors, is that it is one of the safest cities in Florida. The crime rate in Naples is 90 percent lower than the Florida average.

Not only is Naples a safe, wealthy city, but it also has one of the nicest communities in Florida and one of the best cities to reside in. No wonder why Naples has become such a highly-desired city for people to move to. Because Naples is popular for its luxurious factors, you can expect that the cost of living in Naples is going to be relatively high.

Keep reading as we dive deeper into the overall cost of living in Naples and if it is worth the price.

Here are the factors of the cost of living in Naples, Florida.

Overall Cost of Living

The overall cost of living in Naples, Florida, is higher than the national average. In the Naples area, prices have increased by 1.5 percent in the last year. The largest increases were in transportation, food, and housing. When looking at all the factors combined, Naples is 11 percent higher than the national average when it comes to the cost of living. It is also 8 percent higher than the Florida average.

However, if you were to compare Naples to other similar cities that have the same amenities, climate, and environment, Naples is relatively affordable for what it offers. Here are more of the overall factors that play a role in the general cost of living.

• Food costs are 17 percent higher than the national average
• Healthcare is 6.7 percent more than the national average
• Housing costs are 36.8 percent more expensive than the national average
• Utilities are 2.1 percent lower than the national average
• Transportation is 20 percent less than the national average

Real Estate Pricing

The housing market in Naples is one of the more expensive factors when it comes to the cost of living in Naples, Florida. As mentioned above, the housing costs in this city are nearly 37 percent more expensive than the national average. These prices are also 36 percent higher than the Florida average.

When moving to Naples, it is important to understand that the housing market is full of luxurious homes. There is a reason behind the homes having a high purchase price if you could potentially be neighbors with a celebrity. These home prices have decreased by 0.12 percent since last year, which is a good sign for those who are considering moving to the area. 

Naples is currently in a neutral market. This is a great thing for both buyers and even sellers. It means that home prices aren't exceptionally high, and homes are sitting on the market for longer. This is good for those who are looking to buy a home in Naples. 

The current median list price for a home in Naples is around $1,835,000, which is about $587 per square foot.  As of right now, there are over 900 homes for sale in Naples. Most of these homes that are on the market are three bedrooms. So if you are looking to move to the area and are searching for 3-bed homes, you have a variety of options to explore in amazing neighborhoods. 

Even though the price to purchase a home in Naples is quite expensive, you will be happy to learn that more than half of the homes that have sold this past month sold for under the asking price. This is why working with a Real Estate professional is ideal. Their job is to help you negotiate prices.

Utilities

When it comes to paying for utilities, moving somewhere that has an affordable utility cost is important. Because utilities are a reoccurring monthly bill that you must pay, no matter if you own a home or rent, it can become pricey. Luckily for those who are considering moving to Naples, the cost of utilities is actually 2 percent less than the national average and 4 percent less than the state average.

Monthly electric bills are calculated by how much electricity you are using each month. For residents who live in Naples, on average, they spend a little less than $200 a month on electricity. Normally, electricity bills vary from month to month depending on how much electricity you are using. If you want to stay on the lower end, be cautious of how much electricity you are using. 

Other main components of utility bills are water and sewage. On average, a Naples resident will spend around $45 a month for 5,000 gallons. 

Income

According to the U.S. Census Bureau, the median household income recorded in 2021 was around $125,000. The average (or mean) household income in Naples is $248,988 annually. More than 30 percent of Naples's population is considered high-class households. This means that over 30 percent are making more than $200,000. 

If you are moving to Naples, Florida, the biggest companies to work for are in the following industries:

• Sales
• Healthcare
• Business and Finance
• Architecture and Engineering
• Computer

Naples only has 7.57 percent of the population living in poverty. This is lower than the national average of 12.8 percent of the population living below the poverty line. The largest demographic that lives below the poverty line is females in the age range of 65 to 74.

Food and Groceries

The overall cost of food and groceries is only 17 percent higher than the national average, which is a lot. Most cities in Florida have high food costs because the state is not requiring residents to pay for income state taxes. This is an excellent thing for residents, but the state of Florida typically increases the cost of goods and services to make up for lost revenue.

Here are some of the most commonly purchased grocery items and how much they cost in Naples.

Source: Numbeo

Transportation

Transportation is at a high in all cities throughout the United States. Because of how the economy is currently, the price of gas and fuel has increased significantly over the last couple of years. Currently, the gas price for regular fuel is around $3.43 in Naples. It is important to keep in mind that gas prices fluctuate daily.

There are tons of public transportation options within Naples. Because this city is a huge tourist attraction area, and with residents constantly moving in, there are a variety of public transit systems for you to choose from. They have public buses, taxis, trolleys, car services, and more. 

The biggest public transportation system in Naples is the Collier Area Transport (CAT). These buses run seven days a week from 6 am until 8:45 pm. There is an abundance of routes that this system takes. You can get almost anywhere. 

A regular, one-way ticket is $2.00 per person and free for children under the age of 5. If you plan on being a frequent bus rider, you can buy a pass. They have a 15-day pass for $20 and a 30-day pass for $40. 

Taxes

The most significant thing people move to Florida for is the fact that there are no state income taxes. This is great for those who prefer to avoid seeing a large chunk of their paycheck go to state taxes every time they get paid. However, as we discussed earlier, you may not see it come out as "state income tax" on your paystub, but you will see increased prices in other areas to make up for it, like food costs.

Sales taxes in Naples is around the average of 7 percent. This comprises 6 percent Florida state sales tax and 1 percent Collier County sales tax. You will see this tax on the goods and services you purchase throughout the city.

Another tax rate to discuss is property taxes. The property tax rate in Naples, Florida, is 1.2 percent of the appraised value of the home. This is considered to be on the lower end of property tax costs. 

Healthcare

Healthcare in Naples, Florida, is almost 7 percent higher than the national average. It is also 4 percent higher than the Florida average. Some people consider the cost of healthcare an important factor when deciding on where to relocate. It may be essential that you have to live in a city that is affordable and has great doctors. 

If you are one of those people who determine where you move based on healthcare, you will be happy to learn that Naples has some of the best healthcare in Southwest Florida. Naples has previously been ranked as the happiest and healthiest city in America. 

One of the best hospitals in the area is NCH Baker Hospital. This medical center has been ranked highly in 10 adult procedures and conditions according to U.S. News and World Report. Some of those procedures are Cardiac ICU, Medical Surgical ICU, Onsite Emergency Department, and more. 

Pros and Cons of Living in Naples, FL

Pros:

• Neutral housing market
• Tons of housing inventory
• Affordable utilities
• Inexpensive transportation
• Low property tax rates
• No income tax
• Beautiful, luxurious city
• Excellent healthcare
• One of the safest cities in Florida

Cons:

• The cost of living is expensive
• Housing prices are extremely high 
• Food costs are higher than the national average
• Healthcare is costly in Naples

Cost of Living in Naples, Florida - The Bottom Line

As you read about the cost of living in Naples, we hope you have a better understanding of what life is like living in this city. Even though it is an expensive place to live, Naples is overall a great city and offers so much to its residents and visitors. It is considered one of the best places to live for a reason.

Whether you consider Naples way too expensive or affordable, there are so many great things about it. With an abundance of things to do, great weather, beautiful beaches, delicious restaurants, and so much more, you could very well love living in Naples. 

If you are considering relocating to Naples, Florida, contact us today to speak with a local Real Estate professional to help assist you in the buying and selling process.