Alanna Avalone – Private Lender

2026, Issue No. 2

You may have seen the recent headlines about Florida approving a resolution to eliminate non school property taxes on homestead homes starting January 1, 2027.

At first glance, this sounds like a massive win for homeowners. And in many ways, it is.

For people living in their primary residence, lower property taxes could mean reduced monthly expenses, improved affordability, and more long term stability in housing costs. For families on fixed budgets or first time buyers trying to make the numbers work, this kind of relief could make ownership feel more attainable.

But as with most policy changes, the headline and the real market impact are two very different things.

This proposal applies only to homestead properties. Investment properties, rental properties, and second homes would not receive the same benefit. That distinction matters more than most people realize.

From an investor standpoint, this could widen the cost gap between owner occupied homes and income producing properties. If a homeowner next door is paying significantly less in property taxes than an investor holding a similar property, that difference eventually shows up in pricing, rent strategy, and long term yield calculations.

Another important consideration is how local governments will replace the lost tax revenue. Analysts have already raised concerns that counties and cities may need alternative funding sources to maintain services like police, fire protection, and infrastructure. Historically, when one revenue stream is reduced, another is adjusted. It does not disappear. It shifts.

That could mean adjustments in fees, assessments, or other tax categories over time. Investors should pay attention not just to what is being reduced, but to how municipalities adapt.

There is also a behavioral factor to consider. As 2027 approaches, buyers may begin factoring future tax savings into purchasing decisions. Increased demand for homestead properties could put upward pressure on prices in certain segments of the market. When affordability improves for primary residences, competition often increases.

For investors, this may reinforce the importance of strong acquisition fundamentals. Cash flow, tenant demand, location strength, and long term appreciation drivers will matter more than ever if operating costs begin to diverge between owner occupied and non owner occupied properties.

None of this makes the policy negative. In fact, for Florida homeowners it could be a meaningful improvement in long term affordability and housing stability.

But for investors, it is a reminder that market dynamics are constantly evolving. Understanding the downstream effects of policy changes is what allows you to adapt, not react.

The opportunities are still there. They simply shift shape.

If you are evaluating a purchase, refinance, or long term investment strategy in Florida, this is the kind of change worth factoring into your decision making.

As always, I am happy to help you review your options and run the numbers.

Alanna Avalone – Private Lender

Call/ Text/ WhatsApp: +1 (305) 537-6443

This newsletter is my weekly take on lending, markets, and mindset, from someone who still loves helping people get deals done.

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We do NOT offer loans for homesteads (primary residences), or rural.

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