Lee countywide real estate values grow despite Hurricane Ian destruction

Lee County Property Appraiser Matt Caldwell released his preliminary report on real estate values in Lee County during 2022, painting a picture of devastating hurricane damage on tropical islands.

While the total county real estate values have grown a tenth, two barrier island communities hit hardest by Hurricane Ian saw sharply falling values, a nearly 40% decrease in Fort Myers Beach and 31% in Sanibel Island. The lower values could strip them of enough cash to support municipal services at current levels.

Caldwell's report finds a total value increase of 10.3% to $199 billion as of Jan.1. Taxable property – the land and buildings owned by families and businesses – increased in value by a relatively meager 5.2%. Property taxes are paid on the value of homes, businesses and other property.

He will set the final taxable values in later summer when the official certification is due. After the certification, each government entity, ranging from the mosquito control district to the sheriff's office, can adjust its tax rate.

"There is certainly an impact across the board, most acutely on the two islands,” Caldwell said of Sanibel Island and Fort Myers Beach, in a telephone interview after releasing the report. “We also see it in the fire districts – all island fire districts lost value across the board as well as Iona, where damage was most concentrated."

Other districts would include city, library, water management, inland navigation control and others.

In black and white, the property appraiser's report puts a value on the impact the hurricane had on the barrier islands where it was traumatically worse than on the mainland.

Comparatively, mainland communities saw increases in the value of taxable property, led by a 11.6% increase in Cape Coral, a nearly 11% increase in Fort Myers, 7% in Bonita Springs and 8% increase in Estero.

There has been no question that when Hurricane Ian came ashore from the Gulf of Mexico on Sept. 28, it hit Sanibel and Fort Myers Beach the hardest. Taxable property on Sanibel lost nearly $2 billion of its value, according to the property appraiser, from $6.3 billion in 2021 to an estimated $4.3 billion in 2022.

Fort Myers Beach saw taxable new construction worth $189 million while the taxable new construction in Sanibel was $1.7 million.

Coastal fire departments also saw significant declines in property values after the storm.

Fort Myers Beach Fire District property values dropped 38%, Sanibel's by 32%. On Captiva Island, values dropped by 12.4%, and in the Iona McGregor area on the mainland by more than 7%. The Matlacha/Pine Island district was down by 4.6%. Fire districts are taxed separately from the countywide property tax.

Property Appraiser Coldwell said government and families have similar decisions to make when income fluctuates.

"We live on budgets, we have to pay every month, compared to the big purchases – same thing for government," Caldwell said. "You have to run the agencies, work at the water plant, and make sure the street lights are operating but may have to put off for a year on a big road project ... demand still seems to be there, people want to move here."