WEST PALM BEACH, Fla. — Florida home values could receive a boost if the state eliminates property taxes, according to new economic analysis.
Joel Berner, senior economist at Realtor.com, studied the potential effects of ending property taxes in Florida and found the elimination would significantly boost home values statewide.
WATCH BELOW: Florida homes could gain 9% value without property taxes
"The value of homes across the state of Florida could jump by between 7 and 9 percent because of the elimination of property taxes," Berner said. "That's simply the result of user costs of a home getting lower, so negative cash flows in the future mean a higher value today."
The analysis comes as Florida housing prices have pulled back slightly after large increases during the COVID-19 pandemic. However, real estate professionals are already seeing signs of recovery.
"Prices overall have gone down, if you're a homeowner, you've lost money," said Jeff Lichtenstein of Echo Fine Properties in Palm Beach Gardens.
Lichtenstein said he's already seeing prices inch back up, with median prices from Vero Beach to Boca Raton ranging from $365,000 to $485,000.
"The snowbirds are down here right now, and Jan. 1, the seasonal renters are coming, and that's when they start to buy when they like it down here. We get all sorts of demand when people are moving, especially when you get to February and March," Lichtenstein said.
Experts say the combination of seasonal demand and potential property tax elimination would be good news for most homeowners, but could create challenges for first-time buyers.
"People are having a hard time saving up money with the cost of living being what it is today on top of things like student debt, credit card debt, and everything else adding to the upfront costs to make it even more difficult for people to get into the door, and the homeownership rate might suffer because of it," Berner said.
Any decision on the property tax issue in Florida remains at least a year away, requiring approval from both lawmakers and voters.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
Read more of WPTV's coverage of property taxes below:
Real Estate News
Property insurance, not property taxes, becomes Democrats' rallying cry
State
Democrats, cities sound alarm as House pushes sweeping property tax changes
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Renner urges immediate property tax rollback
Real Estate News
Local state senator introduces 5 bills to cut property taxes
Real Estate News
DeSantis blasts House property tax proposals as 'half measures'
Matt Sczesny is determined every day to help you find solutions in Florida's coverage collapse. If you have a question or comment on homeowners insurance, you can reach out to him any time.
