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FLORIDA - A new housing market analysis examines how Gov. Ron DeSantis’ proposal to eliminate property taxes for Florida homeowners could increase property values while creating challenges for renters and first-time buyers.
Florida Gov. Ron DeSantis is promoting a plan to eliminate property taxes for owner occupied homes, a proposal that researchers say would significantly impact Florida’s housing market.
DeSantis argues that ongoing property tax payments burden homeowners and contribute to unnecessary local government spending.
A recent analysis by Realtor.com's economic research team estimates that removing property taxes on primary residences would immediately increase home values in the state by about 7 to 9%.
This would add an estimated $200,000,000,000 to $250,000,000,000 in value to Florida’s owner occupied housing stock.
Economists say the increase would benefit current homeowners but make it more difficult for first time buyers to enter the market.
Researchers note that property taxes are factored into home prices because buyers account for future ownership costs.
Florida home values have declined about 3% since October 2022 but remain 42% higher than in 2019, contributing to affordability challenges.
The median listing price in October was 425000 dollars.
DeSantis has called for a constitutional amendment to phase out property taxes on homeowners.
Under his proposal, state revenue would shift toward sales taxes, corporate income taxes and taxes on second homes, rentals and commercial properties.
Economists warn that landlords would likely pass remaining tax burdens on rental properties to tenants.
Seven proposed amendments addressing property tax reform are currently under consideration in the Legislature.
Some would remove non school property taxes, which researchers estimate could raise home values by 4 to 5.5%.
Critics say the proposals could strain local budgets, while supporters argue they would reduce long term homeowner expenses.