Florida Governor Ron DeSantis is officially removing property taxes for homeowners. This dramatic proposal could reshape the state’s housing market —as the plan promises major financial gains for current homeowners.
Florida’s housing market continues to grapple with rising costs and strained affordability for first time buyers. Median home listing prices in the state hit $425,000 in October 2025 which — despite a recent softening — is still above pre pandemic level. Property taxes will be eliminated and demand from existing homeowners could drive prices higher and lock out new entrants.
The policy is part of a larger political push by DeSantis to change the tax burden. Owner occupied homes will not face property taxes but taxes on “second homes, rentals, and commercial properties” will stay and cause increasing costs for landlords according to Realtor.com.
These expenses are passed to tenants allowing renters to face higher housing costs even as homeowners see financial relief.
Steep new barriers for renters and first time buyers struggling to keep up with one of the nation’s fastest growing real estate landscapes is the potential result .
Benefits to homeowners with a cost
DeSantis believes property taxes are an unfair issue .
“‘Property taxes effectively require homeowners to pay rent to the government,’” he said in a recent statement as reported by Realtor.com.
The publication’s senior economist Joel Berner says eliminating property taxes on homes occupied by owners would cause Florida property values to rise by 9%. Homeowners would see their equity surge creating a sudden jump in household net worth without owners having to make any upgrades or investments.
This appreciation may look positive in theory, but it also accelerates affordability issues for buyers trying to enter the market in cities like Miami, Tampa, and Orlando where prices have already climbed at record levels.
This raises the total value of owner occupied housing statewide to $250 billion.
“It would be a boon to existing property owners,” explained Berner.
He also noted that the major financial reward would “disproportionately benefit wealthy Floridians at the expense of those who don’t own homes.”
Result of the push
When long term homeowners expenses such as taxes shrink, current market prices rise. Lower carrying costs make ownership more attractive and demand from existing homeowners and investors strengthen. That surge would shut out many aspiring first time buyers in Florida.
This effect could widen the gap between owners and non-owners. Current homeowners gain equity but renters facing some of the fastest rising housing costs in the country struggle to transition into ownership. The divide between those who benefit from tax elimination and those who bear the consequences could grow massively.
