Gov. Ron DeSantis is pushing for property tax elimination in Florida, with eight competing bills in the state legislature that would either eliminate or drastically reduce property taxes. However, new research suggests this move could come with significant unintended consequences.
For much of 2025, DeSantis has been advocating for property tax relief, arguing that current policies are unfair to homeowners.
"Property taxes effectively require homeowners to pay rent to the government," DeSantis said in a press release this spring.
As state legislators debate the various proposals, new research from Realtor.com indicates that property values in Florida would immediately jump by up to 9% if property taxes are eliminated.
Senior Economist Joel Berner explained the double-edged nature of these proposals.
"Which is great if you own a home. You won't have to pay taxes on it and your property value will increase. But it makes it more difficult for people trying to become first-time homebuyers and have to face that additional cost to home ownership," Berner said.
The research shows that eliminating property taxes would help current Florida homeowners but potentially harm people who do not yet own homes. According to the study, Florida home values would increase by up to $250 billion under these proposals.
Current market conditions show Florida home values were down about 3% in October compared to the same period 3 years ago. Despite this recent decline, Berner says it remains unclear whether eliminating property taxes would ultimately benefit the housing market.
"It's kind of a mixed bag as to whether it will boost home sales because people will have more money in their pocket. Or reduce home sales because less people will want to sell. That part is less clear," Berner said.
The competing bills represent various approaches to property tax reform, ranging from complete elimination to significant reductions, as lawmakers weigh the potential benefits for current homeowners against the challenges for prospective buyers.
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