Available resale inventory fell 21% year over year in Sarasota and 22% in Naples after new listings began declining in mid-2025, sharply diverging from a nearly flat national market.
1.55 million U.S. existing homes were on the market at the end of May—up to a 10-month high but only 9,000 above a year earlier—well below the 1.9 million to 2 million typical before the pandemic.
Under 5 months of supply in Sarasota's moderate-price segment still gives sellers leverage, while $5 million to $10 million homes carry 17 months of supply and properties above $10 million are oversupplied at 35 months.
About 70% of owners are effectively sidelined by finances—roughly 40% have no mortgage and another 30% hold rates below 5%—while capital-gains taxes, aging in place, stepped-up basis rules and insurance concerns further discourage selling.
Congress has renewed focus on the shortage with the 21st Century ROAD to Housing Act and a separate bill to raise capital-gains exclusions, but the report says neither is likely to lift near-term supply enough to offset affordability pressures.