Florida Property Taxes to Capture Home Price Growth

Fitch Report

Date:

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Autor: Funds Society, Miami

If recent trends hold through year-end 2023, home prices will likely increase year-over-year by about 6% in Florida and the rest of the U.S. Fitch is forecasting an increase in U.S. home prices of 0%-3% in 2024

Recent weakness in commercial real estate, particularly office properties, may weigh on assessed values, but Florida counties’ limited exposure to office property values will moderate the impact of declines on overall TAV

Florida has the strongest relationship of any state between property tax collections and home prices, largely due to the annual assessment of taxable values, which are not subject to multi-year smoothing