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2024 Real Estate Legislative Changes in Florida’s Real Estate Landscape

By Julio Guzman
As the real estate market in Florida, particularly in Miami Dade County, continues to evolve, several key legislative items are making a significant impact. Florida Realtors play a critical role in these legislative developments, particularly through their annual participation in the Greater American Realtor Days (GARD) in Tallahassee, FL during the Florida legislative session. Their advocacy ensures that real estate policies are aligned with industry needs, influencing positive changes in the legislative landscape.

This article delves into four major topics that are reshaping the industry, addressing both the challenges and opportunities they present.

1. Rising Property Insurance Costs

The surge in property insurance premiums in Florida is a multifaceted issue, significantly impacted by several key factors. The state is facing this challenge head-on, with a series of reforms aimed at stabilizing insurance costs and providing relief to homeowners and businesses.

– Impact of Natural Disasters: Florida’s vulnerability to hurricanes and tropical storms is a primary driver of the increased insurance claims, leading to higher premiums.

– Litigation and Fraud: The state has seen a rise in insurance-related litigation and instances of fraud, such as inflated claims, which contribute to escalating costs.

– High Reinsurance Costs: The frequent severe weather events have also led to increased reinsurance costs for insurers, a burden that often gets passed down to policyholders.

– Market Challenges: Due to these factors, the property insurance market in Florida has become less profitable, leading some insurers to exit the market or reduce coverage, further reducing competition and increasing rates for consumers.

– State Interventions: In response, the state is taking several measures. These include encouraging new insurers to enter the market, supporting the ‘depopulation’ of Citizens Property Insurance to foster a more competitive insurance market, and leveraging global reinsurance support. Additionally, in Governor Desantis 2024 proposed budget he earmarks a $409 Million allocation to help reduce insurance premiums potentially by 5%- 6% through tax relief, particularly targeting properties valued under $750,000. These measures aim not only to lower premiums but also to ensure the long-term sustainability of the property insurance market in Florida.

Through these comprehensive efforts, Florida aims to address the root causes of the property insurance crisis and create a more stable and affordable insurance landscape for its residents.

2. Hometown Heroes Housing Program

To support essential community workers, the Hometown Heroes Housing Program provides affordable housing options to healthcare professionals, teachers, law enforcement officers, and firefighters. This program, part of the Live Local Act, offers zero-interest loans and incentives, recognizing the pivotal roles of these individuals and addressing the state’s affordable housing needs.

3. Business Rent Tax Reduction

Aimed at promoting a business-friendly environment, the reduction in the business rent tax from 4.5% to 2% in 2024 is a significant legislative step. This reduction is expected to stimulate business growth and economic competitiveness in Florida’s commercial real estate sector.

4. Condominium Reform

Florida is also focusing on condominium reform to enhance governance, maintenance, and financial transparency. These reforms are designed to protect consumers, improve management standards, and boost confidence in condominium investments, a crucial segment of Florida’s real estate market.

The Role of Florida Realtors in Legislative Advocacy

Florida Realtors play a critical role in these legislative developments, particularly through their annual participation in the Greater American Realtor Days (GARD). Their advocacy ensures that real estate policies are aligned with industry needs, influencing positive changes in the legislative landscape.

The intersection of legislative initiatives and real estate in Florida presents a dynamic landscape of challenges and opportunities, particularly in Miami. As stakeholders – including homeowners, investors, developers, and industry professionals – engage with these legislative items, their involvement is crucial in shaping a resilient and thriving real estate market in the Sunshine State.


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