Todayโs entry:ย Brian, youโreย quite the cheerleader for Florida,ย whichย donโtย get me wrong I appreciate,ย but we all know we have problems.ย Iโdย like to challenge youย withย discussingย what you feel is the biggest problem our state faces right nowย and what you think should be done to address it.ย
Bottom Line:ย Challenge accepted.ย While myย first thought moved in the direction of education, Floridaโs steadily been making progress in education outcomes.ย In fact, in US News & World Reportโs most recent Best State Rankings,ย Floridaโs 3rd bestย in education nationally.ย
The issue which sticks out like a sore thumb to me and only continues to get worse is property taxesย and insurance. Affordable housing, or theย lack thereof, is a common topic discussed by public officials and often addressed in local news reporting but what rarely is talked aboutย are the carrying costs of homes in our state.ย Iโllย throw a couple of numbers at you that are telling.ย Floridaโs unemployment rate, at 5%, is below the national average of 5.2% yet Floridaโs current foreclosure rateย isย the 7th highestย nationally.
Those numbersย donโtย really compute and speak to aย bigger issue. Foreclosure rates areย almost alwaysย tied to employment rates. That holds true withย the sixย statesย in frontย ofย usย asย Illinois, Nevada, New Jersey, Delaware,ย Ohio,ย and California all have well-above-average unemployment rates.ย This alsoย isnโtย a case of what happened during the housing crisis of over a decade ago when people were placed in mortgages theyย couldnโtย afford. Those types of mortgagesย arenโtย legal andย arenโtย available anymore.ย So,ย whatโsย going on?ย
A one-two punch of ever-increasing property taxes and property insurance along with the countryโs largest population of retireesย living on a fixed income.ย And South Floridaโs front and center in the conversation.
If you check Floridaโs overall property tax burden it looks decent enough as we rank 24thย in total tax burden.ย Thatโsย because much of the state has exceedingly low tax burdens toย accompanyย the overall other tax friendliness of our state. South Florida does not.ย Consider where South Floridaโs counties rank nationally in property taxes out 3,143 Broward is 159, Miami-Dade isย 111, and Palm Beach is 166.
This means Broward and Palm Beach Countyโs property taxes are more expensive than 95% of the country and Miami-Dade's are only outdone by 3.5% ofย counties across the country. Thereโs nothing tax-friendly about South Florida. Our local governments have burdened us withย property taxes that are nearly as punitive as any in the country. Whatโs more, is the ever-increasing costs.ย This year aloneย the averageย increaseย in proposed property taxes is about 5% higher in Broward and Palm Beach County while Miami-Dade's is about 4%. The averageย currentย property tax assessment in South Florida is $5,664 in Broward, $5,292 in Miami-Dade, and $6,423 in Palm Beach County.
Weโreย talking about property taxes consuming about 10% of a householdโs gross income. Yes, thereโs homesteading which helpsย considerablyย forย those whoย can use it, however, 3% year over year on already big numbersย isย insignificant โ especially for those on a fixed income.ย Whatโsย more is specialย assessments and voter referendums, such asย additionalย taxes for teachers, schools, etc. can exceed the 3% annual threshold. Then you add in theย ever-increasing property insurance costs.ย I'll cover that in part two.