Florida TaxWatch President and CEO Dominic M. Calabro said, “Despite Florida’s recent laudable efforts to provide more housing, the ability to find an affordable place to live is still problematic for many Floridians. This is a significant deficit of adequate low-income rental options, and the American dream of home ownership has continued to become more elusive for middle-income, hardworking Floridians. Inflation, rising property taxes, and skyrocketing insurance all contribute to making home ownership less affordable.”
Florida TaxWatch Executive Vice President and General Counsel Jeff Kottkamp said, “Florida has made great strides in promoting affordable housing and the Legislature should be commended for their efforts to date, but the shortage of affordable and workforce housing units is still massive. As the Legislature continues to address this challenge, Florida should consider tax credits such as a State Low-Income Housing Tax Credit, a corporate income tax credit for homebuilders to help build more single-family homes that are affordable to middle-income families, and a credit for rehabilitating historic properties for affordable housing.”
In Florida, there are only 25 affordable and available housing units for every 100 ‘extremely low-income’ renter households – making Florida the lowest in the southeast and of the 10 largest states, only California has a lower percentage. Moreover, there are 2.4 million low-income Florida households paying more than 30 percent of their income for housing, with an additional 1.3 million households paying more than 50 percent of their income for housing.
Lack of affordable housing carries significant social costs. It harms the health and educational prospects of children, it limits the self-sufficiency of the elderly and those with special needs, and it increases costs associated with the homeless population. Conversely, investing in affordable housing reduces those costs while also providing the economic benefits inherent in construction activity and growth in the labor force.
The federal Low Income Housing Tax Credit (LIHTC) program has been a great help to housing efforts in all 50 states. Thirty states have created state tax credits to pair with and supplement the federal LIHTC, and many have reported positive economic and community impacts.
Further, homeownership is becoming more elusive, especially for younger people. In 1980, the majority of Floridians became homeowners by age 30. By 2000, the age rose to 34. In 2021, most Floridians had to wait until age 42 to buy a home.
The skyrocketing cost of home insurance, along with property tax levies that have risen 39 percent statewide over the last three years, further increase the cost of homeownership for Floridians. While Florida’s Save Our Home assessment limit helps long-term homeowners hold down property tax costs, it shifts tax burden to first-time home buyers (and non-homestead property).
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About Florida TaxWatch As an independent, nonpartisan, nonprofit government watchdog and taxpayer research institute, and the trusted “eyes and ears” of Florida taxpayers for more than 45 years, Florida TaxWatch (FTW) works to improve the productivity and accountability of Florida government. Its research recommends productivity enhancements and explains the statewide impact of fiscal and economic policies and practices on taxpayers and businesses. FTW is supported by its membership via voluntary, tax-deductible donations and private grants. Donations provide a solid, lasting foundation that has enabled FTW to bring about a more effective, responsive government that is more accountable to, and productive for, the taxpayers it has served since 1979. For more information, please visit www.floridataxwatch.org.
