Cape permits plummet

Affordability and growing inventory key factors mffs New housing permits dropped radically in Cape Coral last month. The 323 permits issued during May were off 26 percent from the 439 issued in April and less than half of the 724 permits issued in May 2005. The run-up in Cape Coral lot prices over the past three years has pushed affordability beyond the reach of many first home buyers. These buyers are increasingly turning to Lehigh, where land costs are about 50 percent less than Cape Coral. Many investors that built spec homes particularly in northeast Cape Coral are facing a challenging scenario as their outlay for land and construction is exceeding the current market value of the completed property. This issue appears particularly acute for those who started homes in the late spring and early summer and acquired the lot at the market peak. Cape home permits plunge [News-Press]

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