Cost of living rising quickly in Southwest Florida

Economists say we haven’t seen inflation rates spike like this since the energy crisis of the 1970s. For so many families, the cost of living is now outpacing what most people earn.

Whether you make $20,000 or $200,000 a year, the price of the necessities in Southwest Florida is digging into everyone’s wallets. Gas, food and housing are all rising with no end in sight.

“It’s worrisome for every family when prices rise faster than money wages do,” said FGCU Economics Professor Victor Claar. Claar said across the board we are paying roughly 10% more for what we need now compared to last year.

The average family in Fort Myers is paying $1,760 in rent. In Naples, that number is $2,000, and that is if you can find a place to rent.

At the current rate, you will likely spend $160 more per month at the pump than this time last year as gas prices continue to rise.

The pain is also felt at the grocery store, where prices are up 7%.

“Whatever you used to buy with $1 now costs at least $1.10 across the board in Southwest Florida. So families need to be really careful with budgeting and watching how prices are changing, especially on the staple things that they buy every single month,” said Claar.

Claar said now is the time to have an honest conversation about your finances with your family and your employer, “because it’s a time when employers are desperate for people who will come in turn up when they’ve said that they’ll turn up, and tell their friends about open positions. So this might actually be a pretty good time. There’s never a great time to ask for a raise.”

Asking for a raise is easier said than done. Claar said there is no timetable as to when you could see prices going back to normal. Some of it depends on what happens with Ukraine.

Not everyone can ask for a raise. Carolyn Medugno said she and her husband are retired. Going back to work is not an option for them. “No matter how much money you have. It still hurts,” said Medugno.

She first noticed the price spikes at the grocery store. “I probably only shop like every six weeks. So I’m going to say maybe $300 at BJs? And maybe $150 here?” Medugno said last year, “Probably maybe, $250 BJs? And maybe $100 here.”

Then she started to see it at the gas station, but thankfully she said, she doesn’t need to fill up too often. “The last time I got gas was probably two weeks ago. And it was $3.45 in the same place. It’s $3.99 today,” said Medugno.

While Medungo owns her home, she knows the home values are soaring too. “And the houses there are twice the price what we paid in 2019. So it’s really it’s ridiculous.”

The National Association of Realtors says in Lee County, just 53% of families can afford to buy a home. In Charlotte County, that number is 50%. In Collier County, it is even lower at just 40%. In other words, in the last year, 22,500 families have been priced out of a home in Southwest Florida.