Florida Property Market at Crossroads: Inventory Tightens as Tax Reform Takes Shape

After two years of steadily increasing housing inventory across the state, Florida’s real estate market is showing signs of a directional shift. According to real estate analyst Mike Simonsen, founder and CEO of Altos Research, the number of homes for sale in Florida is now declining for the first time since 2023.

“The number of homes for sale across Florida is finally declining after two full years of consistently rising,” Simonsen noted in a recent analysis. This inventory reversal signals a potentially significant change for both buyers and sellers in the Florida market.

Property Tax Reform Could Reshape Florida’s Real Estate Market

While the market adjusts to changing inventory levels, Florida legislators are advancing several property tax reduction proposals that could have lasting impacts on real estate investment and homeownership across the state.

House Speaker Daniel Perez recently introduced a series of proposed constitutional amendments aimed at reducing property tax burdens, particularly for homesteaded properties. These proposals are designed to reduce taxes without negatively impacting essential services, such as education and law enforcement.

One notable proposal (HJR 205), sponsored by Rep. Juan Carlos Porras, R-Miami, would exempt Floridians aged 65 and older from paying non-school property taxes on their primary residences. If approved and passed by voters in 2026, this measure could reduce housing costs for senior homeowners across the state.

South Florida’s Affordability Crisis Intensifies

While tax reform offers potential relief, the affordability crisis in South Florida continues to worsen. A recent report from ConsumerAffairs identifies three South Florida cities among the nation’s top ten most “house poor” locations, with Hialeah ranking first nationally.

The term “house poor” describes homeowners spending significantly more than the recommended 28% of income on housing costs. This concentration of severely cost-burdened homeowners throughout the Miami–Fort Lauderdale–Pompano Beach metro area presents ongoing challenges for thousands of families and real estate investors alike.

The WLRN report notes that the Miami metro region has a particularly high concentration of cost-burdened homeowners, painting a stark financial picture for many local families. This persistent affordability gap continues to reshape investment strategies and rental market dynamics throughout the state.

Innovation Offers New Paths Forward

Despite market challenges, innovative approaches to housing construction are emerging across Florida. In Tampa, construction has begun on the city’s first 3D-printed home, representing a technological milestone that could help address affordable housing needs.

The 1,450-square-foot home is being built layer by layer using concrete printed by specialized equipment. This project, managed by the Corporation to Develop Communities of Tampa, demonstrates how construction technology can potentially reduce building costs and increase housing supply in communities facing affordability challenges.

“Work began this month at an infill property where a single story, 1,450-square-foot home will mark a technological milestone,” the Tampa Bay Times reports, quoting Will Crawford, the acquisitions and special projects manager for the Corporation to Develop Communities of Tampa.

3D printing technology can reduce construction costs compared to traditional building methods, while also decreasing construction time. These efficiencies could prove valuable for developers and investors seeking to address Florida’s ongoing housing supply challenges.

Financial Implications For Real Estate Investors

For real estate investors and property owners, these market shifts and potential regulatory changes require careful financial planning and strategic adjustment. The combination of declining inventory, potential tax reforms, and persistent affordability challenges creates both opportunities and risks.

Our team at James Moore has been tracking these trends closely to help clients position their real estate portfolios appropriately. From tax planning strategies to investment structure optimization, we work with property owners to navigate market changes while maintaining long-term profitability.

Florida’s commercial real estate sector is also experiencing ripple effects from these residential market shifts. As residential inventory tightens, many investors are reassessing their commercial holdings and exploring conversion opportunities, particularly in aging office space that might be suitable for residential repurposing.

Make Sound Real Estate Decisions In A Changing Market

Florida’s real estate market is presenting both challenges and opportunities for investors and property owners. The declining inventory trend marks a significant shift after two years of increasing supply, while potential tax reforms could reshape the financial equations that drive real estate decisions.

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