People in This State Could See Housing Prices Go Up 9% If Their Property Taxes Are Eliminated

Core Insights - Florida's housing prices could increase by up to 9% if a proposal to eliminate property taxes for primary residence homeowners is approved [3][8] - The proposal, supported by Governor Ron DeSantis, aims to reduce the financial burden on homeowners, who currently pay an average of $5,400 annually in property taxes [2][3] - The James Madison Institute highlights that while property values in Florida surged by 42% since October 2019, they have recently declined by 3% over the past three years [9][8] Property Tax Proposal - The proposal to eliminate property taxes is expected to benefit existing homeowners significantly, but it may disproportionately favor wealthier individuals [6][9] - If the proposal includes limited property tax collection for local schools, the potential increase in home values could be reduced to between 4.5% and 5% [10] - The Florida Legislature must approve any changes to property tax laws, which would then be subject to a voter referendum in November 2026, requiring a 60% majority to pass [10] Economic Implications - The elimination of property taxes could exacerbate housing affordability issues, making it harder for non-homeowners to enter the market due to rising prices [6][9] - The proposal may shift the tax burden more heavily onto renters, as rental properties would still be subject to property taxes [9][6] - The impact of rising housing costs on consumer spending and economic stability is a critical concern, as it affects broader economic conditions [5]