Florida’s Housing Affordability Crisis: The Impact of Soaring Property Taxes

Florida’s Housing Affordability Crisis Deepens Amid Soaring Property Taxes

Florida’s housing affordability crisis has reached alarming heights, driven by skyrocketing property taxes that have surged over the past five years. A recent study by Redfin highlights that three of the five metropolitan areas in the U.S. experiencing the most significant property tax hikes are located in the Sunshine State, with Jacksonville, Tampa, and Miami leading the charge.

In Jacksonville, homeowners are feeling the pinch as the median monthly property tax payment has skyrocketed by 59.6% from 2019 to 2025, now averaging $228. This increase places Jacksonville third among the nation’s most populous metropolitan areas, trailing only Indianapolis (66.7%) and Atlanta (65.8%). The total median monthly housing payment in Jacksonville has also surged, now sitting at $2,735—an astonishing 99% increase since 2019.

Tampa is not far behind, with property tax payments climbing nearly as steeply. Residents now face an average monthly property tax bill of $250, reflecting a 56.7% increase over the past five years. The total median housing cost in Tampa has reached $2,797, marking a staggering 112.4% rise since 2019.

Miami rounds out the top five, with property taxes increasing by 48.1%. Homeowners in the Magic City now pay a median monthly property tax of $367, coupled with a total monthly housing payment of $4,401—up 125.7% since 2019, the highest increase in housing payments among the three cities.

The surge in property taxes is just one facet of Florida’s escalating housing crisis. Rising home values, which have soared over the past five years, have contributed significantly to the increase in property taxes. The state’s booming population has further intensified demand for housing and government services, exacerbating the affordability crisis.

"Florida was alluring for remote workers during the pandemic because of its relatively affordable housing," noted Elijah de la Campa, a senior economist at Redfin. "However, the state’s population boom has ironically driven up home prices and property taxes, making homeownership unaffordable for many local residents and newcomers alike."

Compounding the issue, Florida has faced more frequent and severe natural disasters, leading to skyrocketing home insurance premiums. Many insurance companies have either reduced coverage in vulnerable areas or exited the state altogether, leaving homeowners in a precarious position.

Despite legislative efforts to stabilize the home insurance market, the recent damage caused by Hurricanes Helene and Milton is still being assessed. De la Campa expressed concern over the cumulative impact of these factors on Florida residents. "Home prices are now significantly higher than pre-pandemic levels, and the disaster-driven surge in HOA and insurance costs is pricing many homebuyers out of the market," he said. "For some, the increase in property taxes is the final straw."

As Florida’s reputation as an affordable haven fades, Redfin anticipates a slowdown in the state’s housing market. A recent Redfin-Ipsos survey revealed that 32% of U.S. residents aged 18 to 34 are reconsidering their relocation plans after witnessing the devastation caused by Hurricane Helene.

Are you a Florida resident grappling with significant property tax increases? We want to hear your story and how you are managing this financial burden. Contact us at g.carbonaro@newsweek.com.