Florida homeowners might be ready to pop champagne over Gov. Ron DeSantis' latest pitch: eliminate property taxes entirely. But economists are warning that popping equity could come with a price — especially for those still trying to break into the market.
"Home ownership should mean you fully own your home, not be forced to pay rent to the government in the form of property taxes," DeSantis wrote on X in October, slamming the system as unfair and bloated. His proposed overhaul would wipe out property taxes for owner-occupied homes, giving millions of Floridians instant relief from one of their largest annual bills.
And those bills have been rising. According to a 2024 Redfin report, property tax costs have climbed in nearly every major U.S. metro since 2019 — with Florida claiming three of the top five metros with the biggest increases. In that context, the governor's push has found an eager audience among frustrated homeowners.
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But according to a new analysis by Realtor.com's economic research team, that relief could spark a surge in home prices — with values jumping 7% to 9% virtually overnight. In dollar terms, that would inflate Florida's housing market by $200 billion to $250 billion, creating a windfall for current homeowners while leaving renters and future buyers staring at even steeper price tags.
"It would be a boon to existing property owners," said Joel Berner, Realtor.com's senior economist and author of the analysis. "But this measure would disproportionately benefit wealthy Floridians at the expense of those who don't own homes, and would make it even harder to break into homeownership because of the increased prices."
The logic is simple: recurring expenses like property taxes are "capitalized" into home values. Reduce the expense, and the property becomes more valuable — not less. It's good news if you're already in. Not so great if you're still saving for a down payment in a state where affordability has already been stretched thin by high mortgage rates and tight inventory.
Even worse, Berner notes, the benefits would skew toward wealthier Floridians with higher-value homes. Renters and aspiring buyers would get no direct benefit but would still have to compete in a more expensive market.
Still, the study cautions that the final impact depends on how the plan is implemented — including whether voters approve it, and how local governments replace lost revenue. But if enacted, the price spike could hit quickly.
There's also a risk that prices rise faster than demand. If homes become overvalued, some sellers could struggle to find buyers willing — or able — to meet those inflated costs.
As home values rise, more homeowners may start treating their property less like a permanent address and more like a financial lever. That's where platforms like Nada come in, offering "Homeshares" — equity-based agreements that let homeowners unlock cash now by selling a portion of their home's future value, with no interest, no monthly payments, and no new debt.
Unlike a loan, the deal settles later — usually when the owner sells, refinances, or buys out the agreement. For investors, the upside depends on how much the home appreciates. Nada targets net internal rates of return between 14% and 17%, making these contracts increasingly appealing as property values climb.
It's a dream scenario for those who already own. But for renters and would-be buyers, the ladder to homeownership may rise just out of reach — again.
As DeSantis pushes to eliminate taxes in the name of ownership, the real friction may not be between owners and government, but between those inside the market and those still locked out.
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