Florida’s Property Tax Showdown: Why Eliminating Taxes Could Spike Home Prices Overnight

Why This Matters for Florida Homeowners and Future Buyers

Like the rest of the country, Florida has been wrestling with steep housing costs driven by pandemic inflation, record property value increases, insurance spikes, and climbing mortgage rates. With home values soaring, property taxes followed suit—tightening budgets for millions of residents.

Removing property taxes may sound like a relief, but according to several economists, it could paradoxically make homeownership even harder for first-timers by fueling rapid price escalation.

The Push to Eliminate Property Taxes

Governor DeSantis has repeatedly described property taxes as oppressive, claiming homeowners shouldn’t feel like they’re paying “rent to the government.” His message—echoed across social platforms and public appearances—has ignited strong support among those struggling with tax burdens.

Yet analysts warn that Florida cannot simply erase property taxes without replacing the billions they generate annually. Dr. Esteban Leonardo Santis of the Florida Policy Institute told Newsweek that removing them would force the state to raise sales taxes or create entirely new revenue systems.

“Any of these proposals are cost shifts,” Santis said. “So the question right now is who is going to pay for it?”

What the Experts Are Saying

Realtor.com senior economist Joel Berner: “It would be a boon to existing property owners. But this measure would disproportionately benefit wealthy Floridians at the expense of those who don’t own homes.”

Real estate economist Ken Johnson went further, noting that while the proposal may appear sustainable during economic booms, a recession could quickly turn it catastrophic. With nearly 10 percent of Florida homes being vacation properties, a downturn could trigger selloffs—sending prices and revenue sinking simultaneously.

“A major U.S. recession could crash Florida housing and, at the same time, dry up the Florida budget,” Johnson warned.

What Happens Next?

Lawmakers seem reluctant to endorse a full repeal of property taxes, instead exploring targeted reductions. Among the proposals is a measure to remove tax from non-school homesteads, offering partial help without dismantling the system entirely.

Even former state senator Jeff Brandes criticized the governor’s plan, calling it more political slogan than practical policy.

To eliminate property taxes statewide, voters would need to approve a constitutional amendment requiring a 60 percent majority—a formidable obstacle.

What This Means for Real Estate Professionals

For agents, investors, and aspiring professionals, the implications are enormous. A sudden 7–9 percent increase in prices would reshape negotiations, evaluation strategies, and market entry points overnight.

If you’re preparing for a real estate career—or growing your licensing portfolio—staying ahead of legislation like this is essential. Cameron Academy remains committed to helping new and seasoned professionals stay informed through flexible licensing programs, continuing education, and up-to-the-minute industry insights.

Source Acknowledgments

Information for this article was sourced from Newsweek and Realtor.com. Explore their full reports below:

Read the original Newsweek article

Read the Realtor.com analysis