Are dominoes lining up for another wave of people moving to Florida? 🏖️

You ever get that feeling like something big is coming?

My daughter plays a game with me while we drive where she calls out the license plates on cars from states outside of Florida.

It's pretty nonstop while we drive around Jacksonville these days.

I bet that's true in a lot of places throughout Florida.

While it might not be the most scientific way to collect data on the topic, it hints at something bigger.

What if we're gearing up for another wave of people moving to the Sunshine State?

What would cause more people to move to Florida? 🤔

After we get through the people saying "go away, Florida is full," we can start to look at a big reason why more people will continue to move to Florida: taxes.

Now, most people would think that taxes would keep people away, but that's not the situation in Florida.

In this case, it's how low the taxes are that matters.

Let's take a look at how the different states stack up when it comes to taxes:

Florida ranks #5 out of 50 when it comes to how attractive the taxes are for businesses and individuals.

A huge bright spot is the fact that there's no state income tax in Florida.

Also, we boast a pretty awesome property tax benefit for owners of a primary residence called the homestead exemption.

The exemption essentially freezes your property taxes from increasing while you own your home in addition to giving you a discount on them. 

Even with that awesome benefit, Florida's worst score on the rankings came from it's property taxes where the state ranked 20th.

But could it be getting even better soon?

DeSantis wants to swing big with property tax reform. 💥

A big reason we could see even more people make the move to Florida is the potential elimination of property taxes (non-school levies) for primary residences. 

Governor Ron DeSantis has publicly supported this move saying "property taxes effectively require homeowners to pay rent to the government. Florida residents need relief."

It's a big deal for homeowners and would likely garner plenty of attention from people outside the state looking to move here to take advantage of the benefits. 

The Bottom Line for Real Estate Agents and Investors ✅

Here are some thoughts to keep in mind:

1. 🙋‍♂️ There's a long way to go. This move would require significant voter approval to become final and we won't really start talking about that until next year. Major changes require major support.
   
   
2. ⚖️ There will be tradeoffs with the changes. This move would be huge for homeowners and local economies. But it would likely mean an increase on sales tax for the things we buy. Renters wouldn't see a benefit based on how it would likely be structured (which is why it's a challenge to pass this type of change).
   
   
3. 🤑 This will push home values higher. Whenever governments get involved to make housing more attractive to buyers, prices get pushed higher as demand increases relative to supply. It might not be immediate, but lower taxes will draw more people to the state and almost certainly push home prices higher.
   
   

Overall, DeSantis is looking for more ways to ensure he gets re-elected and boost the economy within the state.

Property tax reform like this could accomplish both goals.

It's not a perfect solution, but it's a big move that could spark another wave of relocation to our state and reignite our real estate markets.

Are you preparing for the opportunities ahead? 🚀

Dr. Alex Stewart
Founder