Real estate across the United States has changed drastically in the last several years, but the State of Florida has experienced particularly unique challenges. Florida is primarily known for its warm weather and beautiful beaches, but it also offers advantageous tax policies and investment benefits, making it a preferred place to live.[1] Many people desire to move to Florida since the state has no income tax, but the rising costs of property taxes and insurance make homeownership especially difficult.[2] Instead of considering purchase price alone, future homeowners must consider the cost of property tax, homeowners insurance, homeowners association fees, and interest rates, among other concerns.[3]

Since the shift from the 2020–22 market, when interest rates were low and inventory was limited, the current real estate market poses higher mortgage rates, larger inventory, more selective buyers, and growing affordability concerns.[4] It is well acknowledged that as home values continue to rise, so do annual property taxes.[5] In 2025, the median Florida home was valued at $384,000, with an annual tax bill of approximately $5,400.[6] Property taxes have gradually placed an insurmountable burden on homeowners since 2019, as homes in Miami-Dade and Broward counties have increased tax payments by over fifty-five percent.[7] In efforts to combat this continuing problem, Florida lawmakers have proposed a constitutional amendment to increase the current homestead exemption.[8]

For qualifying homeowners, the homestead exemption reduces their overall property tax liability based on the taxable assessed value.[9] Those eligible for homestead exemption must have legal title at the start of the tax year, the home must be their permanent residence, and they must be a resident of the state at the start of the tax year.[10] Unlike market value, a home’s assessed value is determined by the local government property appraiser.[11] Local officials decide property tax rates, so costs can vary greatly depending on the county the property is situated in.[12]

Opponents of the proposed constitutional amendment raise concerns regarding how local governments will ensure that the cost of public safety and services is compensated, which is an understandable risk.[13] In Collier County, the public safety expenses totaled over $320 million in 2025 alone.[14] Local governments prominently rely on property taxes for funding, so increasing the homestead exemption could create obstacles to providing essential services and resources, such as emergency fire services, libraries, and parks.[15] Although homestead homeowners’ tax bill may decrease, the lost local government revenue will be shifted to other forms of taxes and significantly impact renters, consumers, and small businesses.[16]

Another ongoing concern in Florida is homeowners insurance, as premiums continue to rise and homeowners are often denied coverage.[17] Many insurance companies stopped selling insurance policies in the state because claims costs increased quicker than anticipated.[18] Over the last several years, insurance premiums have doubled or even tripled in Florida counties due to both rising construction costs and frequent hurricanes (which inevitably lead to more litigation).[19] Many legislative changes took effect in July 2026 to ensure disputes are resolved efficiently and actually reviewed by a human professional as opposed to artificial intelligence (AI) systems.[20] Recent legislation has encouraged new property and casualty insurers to enter Florida, which has increased the competition and access to coverage for Floridians.[21]

The latest legislative change involving claim dispute resolution requires a mandatory dispute resolution procedure as opposed to voluntary mediation.[22] Alternative dispute resolution has many advantages, including faster resolution, lower lawyer and related fees, and greater agency to parties in controlling the legal outcome.[23] The new law requires an administrative judge to review the case and determine the coverage amount owed before any lawsuit can be filed by the homeowner.[24] The process limits litigation costs and allows the claim to be resolved faster, but there are potential disadvantages if the homeowner fails to hire counsel to ensure the petition is filed correctly.[25]

This new legislation also requires an adjuster to review and approve any claim denial, whether or not AI is used to make the initial evaluation.[26] The rate for denials increased by 46.7% in 2024, which led to the concern that AI is making important decisions instead of a human professional.[27] These changes to dispute resolution and AI system oversight will help stabilize the insurance market and bring down average premiums by curbing frivolous lawsuits and streamlining claim processes.[28]

These recent modifications give future Florida homeowners reason for great optimism as the real estate market begins to stabilize.[29] The impact of the proposed homestead exemption amendment and other legislation might offer immediate tax savings, but it will greatly impact future tax policy and future local government funding.[30] The current homestead exemption is nonetheless beneficial, and new homeowners should review eligibility requirements to determine if they qualify.[31] Additionally, homeowners insurance is expected to become more accessible as new private insurers enter the market and rates decrease as a result of fewer lawsuits being filed.[32] Compared to a few years ago, potential buyers have more options and protections to help save them costs in the long run.[33] As future legislation continues to develop, Florida homeowners can rest assured knowing Florida lawmakers are making efforts to address these problems to ensure Florida remains the paradise we all know and love.

[1] The Advantages of Investing in Florida Real Estate, The Kiessling Grp., https://kiesslingluxuryhomes.com/blog/the-advantages-of-investing-in-florida-real-estate (last visited Sep. 7, 2026).

[2] Janet Siroto, U.S. States With No Income Tax Aren’t as Affordable as You Might Think, Realtor.com (Jun. 25, 2024), https://www.realtor.com/advice/finance/why-us-states-with-no-income-tax-arent-affordable/.

[3] Jim Ciocia, The Real Cost of Buying a Home in Tampa Bay: 7 Expenses to Plan for Beyond the Mortgage, Generations Tax & Wealth Mgmt. (Sep. 3, 2026), https://www.gtaxwealth.com/blog/the-real-cost-of-buying-a-home-in-tampa-bay-7-expenses-to-plan-for-beyond.

[4] Florida Housing Market Outlook 2026: What Buyers Should Know, MIDFLORIDA Credit Union: Mortgage (July 14, 2026), https://www.midflorida.com/resources/insights-and-blogs/insights/mortgage/navigating-the-waves-florida-housing-market-predic.

[5] Vance Ginn & Joseph Johns, Proper⁠t⁠y Tax Rel⁠i⁠ef ⁠i⁠n Flor⁠i⁠da: Challenges, Op⁠t⁠⁠i⁠ons, and ⁠t⁠he Pa⁠t⁠h ⁠t⁠o True Homeownersh⁠i⁠p, James Madison Inst.: George Gibbs Ctr. for Econ. Prosperity (Oct. 15, 2025), https://jamesmadison.org/property-tax-relief-in-florida-challenges-options-and-the-path-to-true-homeownership/.

[6] Id.

[7] Jeff Andrews, Skyrocketing Home Values Driving Higher Property Taxes, HousingWire: Hous. Mkt. (Jan. 8, 2025), https://www.housingwire.com/articles/property-taxes-up-affordability-miami-colorado/.

[8] Esteban Leonardo Santis, Amendment 3: Property Tax Ballot Language Summary and Local Fiscal Impacts, Florida Pol’y Inst. (July 21, 2026), https://www.floridapolicy.org/posts/florida-property-tax-amendment-ballot-language-summary.

[9] What Every Florida Homeowner Should Know About the Homestead Exemption, MIDFLORIDA Credit Union: Mortgage (May 11, 2026), https://www.midflorida.com/resources/insights-and-blogs/insights/mortgage/florida-homestead-exemption.

[10] Eligibility Requirements for Florida Homestead Exemption, Barnes Walker: Real Estate, https://barneswalker.com/eligibility-requirements-for-florida-homestead-exemption/ (last visited Sep. 12, 2026).

[11] Terence Loose, What is Assessed Value and How is It Determined?, Rocket Mortgage: Learn (Dec. 13, 2025), https://www.rocketmortgage.com/learn/assessed-value.

[12] Ryan Erisman, Florida Counties with the Highest and Lowest Property Tax Rates, Fla. for Boomers (Sep. 22, 2026), https://www.floridaforboomers.com/highest-and-lowest-florida-county-property-tax-rates/.

[13] Neva Butkus, Tallying Up the Impact of Florida’s Property Tax Ballot Measure on Local Communities, Inst. on Taxation and Econ. Pol’y: Local Prop. Taxes (Sep. 29, 2026), https://itep.org/impact-of-amendment-3-florida-property-tax-ballot-measure/.

[14] Collier Cnty. Clerk of the Cir. Ct. & Comptroller, 2025 Dollars and Sense: A Citizen’s Guide to County Finances for the Fiscal Year Ended September 30, 2025, 11, https://www.collierclerk.com/wp-content/uploads/2025-Collier-County-PAFR-1.pdf (last visited Oct. 26, 2026).

[15] Collier Cnty. Clerk of the Cir. Ct. & Comptroller, The Clerk’s Report: September 2026, 2-3, https://designrr.page/?id=516498&token=3211833944&type=FP&h=9526 (last visited Oct. 26, 2026).

[16] Voter Guide: What Floridians Should Know About Amendment 3, Fla. Pol’y Inst. (Sep. 15, 2026), https://www.floridapolicy.org/posts/voter-guide-what-floridians-should-know-about-amendment-3.

[17] R.E. Hawley, What’s Driving Florida’s Home Insurance Crisis, How to Lower Costs, and What to Do if Your Policy is Canceled, kin. (Aug. 17, 2026), https://www.kin.com/blog/florida-home-insurance-crisis/.

[18] Id.

[19] Ashley Miznazi, Homeowners Insurance in Florida Increased at Double the National Rate, Report Says, Miami Herald (May 22, 2026), https://www.miamiherald.com/news/local/environment/climate-change/article315840623.html.

[20] Florida Insurance Law Changes 2026, Krapf Legal: Prop. Damage (Apr. 2, 2026), https://krapflegal.com/recources/property-damage/florida-insurance-law-changes-2026/.

[21] Shiloh Elliot, Insurance Commissioner Mike Yaworsky Announces New Property & Casualty Insurers, Making 20 Companies Entering the Market Since Historic Legislative Reforms, Fla. Off. of Ins. Regul.: Newsroom Archives (May 20, 2026), https://floir.gov/newsroom/archives/item-details/2026/05/20/insurance-commissioner-mike-yaworsky-announces-new-property—casualty-insurers–making-20-companies-entering-the-market-since-historic-legislative-reforms.

[22] Krapf Legal, supra note 20.

[23] The Role of Alternative Dispute Resolution in Insurance Coverage Disputes, Thompson McMullen P.C.: Comment. (Apr. 12, 2023), https://www.t-mlaw.com/commentary/the-role-of-alternative-dispute-resolution-in-insurance-coverage-disputes/.

[24] Krapf Legal, supra note 20.

[25] Id.

[26] Id.

[27] Id.

[28] Id.

[29] 2026 Florida Housing Market Forecast, MLS Campus: Real Estate (Jul. 5, 2026), https://www.mlscampus.com/2026-florida-housing-market-forecast/.

[30] Joseph M. Dobkin, The Truth About Florida’s New Property Tax Amendment: The Good, the Bad, and the Ugly, Law Offs. of Joseph M. Dobkin: Blog, https://dobkinlaw.com/the-truth-about-floridas-new-property-tax-amendment-the-good-the-bad-and-the-ugly/ (last visited Oct. 10, 2026).

[31] Barnes Walker, supra note 10.

[32] Keith Landry, Florida Insurance Regulators Say Home Insurance Premiums Are Falling in 51 Counties This Year, Spectrum News 13 (Jul. 30, 2026), https://mynews13.com/fl/orlando/news/2026/07/30/florida-insurance-regulators-say-hurricane-premiums-are-falling-in-1-counties-this-year.

[33] MIDFLORIDA Credit Union, supra note 4.