A closer look at home price corrections in second-home housing markets Naples and Sevierville

Back in August 2023, I stated that Naples, FL and Sevierville, TN still faced downside risk despite their spring 2023 appreciation. That call proved correct.

[Photos: Adobe Stock]

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Back in August 2023, I stated that two metro area housing markets I was watching closely—and believed still faced heightened downside risk despite eking out some gains in 2023—were Sevierville, TN (where, in July 2023, home prices were still 70% above December 2019 levels) and Naples, FL (where, in July 2023, home prices were still 72% above December 2019 levels). Unlike frothier markets like Austin, Boise, Punta Gorda, and Cape Coral, which had already slipped into correction mode by then, Sevierville (Sevier County, TN) and Naples (Collier County, FL) hadn’t yet seen a more material giveback.

Fast-forward to summer 2026, and my fundamental analysis was right: Both Sevierville (a big-time Airbnb and vacation housing market) and Naples (a big-time luxury/retirement second-home housing market) have subsequently passed through home price corrections, which have helped to blow off some froth and improve underlying fundamentals.

The reason........

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