F
lorida Governor Ron DeSantis has hinted at supporting the elimination of property taxes in the state, but it would require a constitutional amendment. According to Joel Berner, senior economist at Realtor.com, abolishing property taxes could benefit Florida's market by resolving inventory buildup and alleviating strain on homeowners grappling with high housing costs, including insurance rates.

    Berner notes that current unsold homes and longer selling times are due to affordability concerns. He suggests that eliminating property taxes would increase home budgets, allowing people to buy their first or dream home, but this could drive up prices in the short term. However, Berner warns that replacing locally-levied property taxes with a state-level sales tax could reduce local control and impact communities.

    Economic research lead at Redfin, Chen Zhao, agrees that eliminating property taxes would have "knock-on effects." He notes that buyers might perceive local services suffering as a result, dampening the benefits. Additionally, it's unclear how the state would raise revenue in replacement of property taxes, which could be off-putting to potential migrants.

    The issue of high insurance costs remains a concern, with Zhao stating that if insurance costs offset property tax savings, buyers may still hesitate to buy in Florida. Several states are considering abolishing property taxes, including Pennsylvania, where lawmakers argue that homeowners shouldn't have to "pay rent" to the government.