Why Florida's Housing Market Is in Total Chaos

Florida's Two Biggest Housing Problems
Part 2 Video:    • Florida's Unescapable Nightmare  

The 2 Major Issues Crippling Florida’s Housing Market

🏠 Property Taxes in Florida – 10 Key Talking Points
1. "Low" State Property Tax Rate Can Be Misleading
Florida seems to have a low average property tax rate (~0.9%), but values have skyrocketed—so people are paying more than ever in actual dollars.
2. Rising Home Values = Bigger Tax Bills
Property values in many areas—especially coastal spots and metro hubs like Tampa Bay and Miami—have jumped, which means higher tax assessments.
3. Homestead Exemption Helps… But Only If It’s Your Primary Home
Florida’s homestead exemption offers up to $50,000 off your assessed value, but it doesn’t help second homeowners or investors.
4. Save Our Homes Cap – Good for Long-Term Owners, Not Buyers
Existing owners benefit from a 3% cap on annual assessment increases, but new buyers get hit with a reset to full market value.
5. Snowbirds and Out-of-State Investors Pay More
No homestead protection, no tax caps—just full freight. Great for county revenue, not great for affordability.
6. Some Counties Are Hiking Millage Rates
Even if your home value stays the same, your tax bill can go up if your local government increases the millage rate (basically the multiplier used on your assessed value).
7. Tax Portability Confuses People
You can take your homestead savings to a new home, but the process is clunky and not well understood.
8. Lack of Uniformity Between Counties
Property taxes vary a lot between counties. A $500k house in Pasco might have a very different tax bill than one in Hillsborough or Pinellas.
9. Tax Increases Are Chasing Out Retirees
Many retirees moved here for the “affordable” Florida dream. Now, higher taxes are squeezing fixed incomes.
10. Some Locals Feel They're Subsidizing Newcomers
With the influx of buyers and higher sales prices, long-term locals worry that rising taxes are pricing them out of their own neighborhoods.
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🏚️ Homeowners Insurance in Florida – 10 Key Talking Points
1. Premiums Have Exploded
The average homeowners insurance premium in Florida is now over $4,000/year—nearly 3x the national average.
2. Insurance Companies Are Leaving the State
Major carriers (like Farmers and AAA) have pulled out or stopped writing new policies, reducing competition.
3. Citizens Insurance Is Becoming the "Last Resort"
Florida’s state-run insurer, Citizens, is now the largest property insurer in the state—meant to be temporary, it's now propping up the whole market.
4. Hurricane Risk Is Only Part of the Problem
Fraud and litigation are also big drivers. Florida has a tiny percent of insurance claims nationwide, but accounts for over 75% of the litigation.
5. Roofing Scams Have Fueled the Crisis
“Free roof” offers and questionable claims have led to lawsuits and higher costs passed down to everyone.
6. Reinsurance Costs Are Through the Roof
Insurers have to buy backup insurance (called reinsurance), and those costs have surged, especially after major storms like Ian and Idalia.
7. Older Homes = Higher Premiums or Denials
Homes with older roofs, outdated electrical, or plumbing may not even be eligible for coverage without expensive upgrades.
8. Flood Insurance Is Now Separate—and Expensive
Even in "non-flood zones," lenders are pushing buyers to carry extra flood coverage, thanks to new FEMA flood maps and Risk Rating 2.0.
9. New Construction Isn’t Immune
Even new homes are seeing steep insurance rates due to the overall market risk in Florida. No one’s getting off easy.
10. The Crisis Is Slowing Down Real Estate Deals
Buyers are walking away after seeing insurance quotes, and sellers are scrambling to get policies just to close deals.



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Please note that all the information provided on this YouTube channel or through it is meant for entertainment and educational purposes only. The owner of this channel, Jimmy Bitzas, is not a realtor, Mortgage Professional or a financial planner and cannot guarantee the accuracy of the information shared in this video. The information shared is subject to change, as is the nature of the fast-paced world we live in. Jimmy Bitzas cannot be held responsible for any errors in the information shared or any injuries or damages that result from the use of this information.