The Effect of Property Taxes on Fort Lauderdale Home Affordability

Fort Lauderdale, Florida, faces mounting challenges in maintaining home affordability, driven in part by rising property taxes and increasing home values. For homeowners considering whether to stay or sell their house in Fort Lauderdale, understanding these dynamics is essential. This article explores how stable property tax rates—despite a 56.80% increase in Broward County’s overall tax burden from 2019 to 2024—affect affordability in a city where the home price-to-income ratio continues to climb. We also examine how exemptions offer partial relief, how disparities impact new buyers, and how local policies aim to expand affordable housing. By presenting diverse viewpoints, we aim to shed light on both the financial burden and the potential for tax policy to shape a more balanced housing market.

Understanding Property Taxes in Fort Lauderdale

Property Tax Structure

Fort Lauderdale’s property taxes are determined by millage rates set by the city (4.1193 in 2024, unchanged for 18 years) and Broward County (5.6690 for 2023-2024), applied to a property’s taxable value. The effective property tax rate, accounting for exemptions, is 1.55%, higher than the national median of 1.02% but below Florida’s 1.14%. The Broward County Property Appraiser assesses properties at market value as of January 1 each year, influenced by market factors. Florida’s “Save Our Homes” amendment caps annual increases in assessed value for homesteaded properties at 3% or the Consumer Price Index (CPI), whichever is lower, benefiting long-term homeowners but creating disparities for new buyers assessed at full market value.

Historical Trends

Despite stable millage rates, Broward County’s overall property tax burden surged by 56.80% from 2019 to 2024, driven by significant home value appreciation rather than rate increases. This trend highlights how rising property values, even with consistent rates, can dramatically increase tax liabilities, affecting affordability.

Home Affordability in Fort Lauderdale

Current Home Prices and Income Levels

In early 2024, Broward County’s median sale price for single-family homes rose from $575,000 in January to $635,000 in April. Early 2025 data shows variability, with a median sold price of $476,880 in March (a slight year-over-year increase) and $640,000 in February. The median household income in Fort Lauderdale (2019-2023) is $79,935-$80,539, but the cost of living is 10-20% above the national average, largely due to housing costs. With a poverty rate of 15.2%, income disparities are notable.

Affordability Metrics

The home price-to-income ratio, using a median home price of $550,000-$640,000 and a median income of $80,000, ranges from 6.875 to 8.0, far exceeding the affordability threshold of 5.0. This indicates that housing in Fort Lauderdale is seriously unaffordable for median-income households, placing significant financial strain on potential buyers.

Correlation Between Property Taxes and Home Prices

While Fort Lauderdale’s millage rates have remained stable, the 56.80% increase in Broward County’s property tax burden since 2019 correlates strongly with rising home prices over the past decade. Higher home values lead to increased assessed values, resulting in larger tax bills despite unchanged rates. This indirect correlation underscores how market-driven price appreciation, rather than tax rate changes, significantly impacts affordability through higher tax liabilities.

Broader Context in South Florida

The trend of rising property taxes due to home value increases extends across South Florida, including Miami and Tampa, where strong buyer demand and limited supply often offset any downward pressure higher taxes might exert on prices. The “Save Our Homes” cap exacerbates affordability challenges for new buyers, who face taxes based on current market values, contributing to the region’s housing affordability crisis since 2019.

Comparative Analysis of Property Tax Burden

Within Florida

National Context

Compared to similar-sized U.S. cities, Fort Lauderdale’s 1.55% effective rate is higher than Charlotte, NC, but lower than high-tax states like New Jersey (2.49%) or Illinois (2.27%). Nationally, Fort Lauderdale’s property tax burden is moderate, with affordability challenges driven more by high home prices in a desirable coastal market than an exceptionally high tax rate.

Role of Local Government Policies and Exemptions

Property Tax Exemptions

Florida’s Homestead Exemption reduces taxable value by up to $50,000 for primary residences, saving Broward County homeowners an average of $2,000 annually when combined with the “Save Our Homes” cap. Additional exemptions include $25,000 for low-income seniors (65+), with some cities offering $50,000, as well as benefits for disabled veterans, surviving spouses, and individuals with disabilities, mitigating tax burdens for eligible residents.

Other Policies

Fort Lauderdale and Broward County implement policies to indirectly improve affordability, such as height and density bonuses for developers including affordable units, adoption of the Live Local Act for expedited approvals, and the Fort Lauderdale CRA’s support for affordable housing. Broward County’s Affordable Housing Trust Fund and land use policies incentivize affordable construction on commercial sites, aiming to increase supply and moderate housing costs.

Diverse Perspectives on Property Taxes

Many residents view rising property taxes, driven by escalating home values, as a barrier to affordability, particularly for those on fixed or lower incomes. Conversely, some economic theories suggest higher taxes could lower home prices by factoring future liabilities into current values, though this is often offset in high-demand markets like Fort Lauderdale. Property taxes fund essential services, so relief must balance revenue needs, while the “Save Our Homes” cap creates disparities, with new buyers facing higher tax bills, fueling debates on fairness.

Policy Recommendations

To address property tax impacts on affordability, Fort Lauderdale could consider: 1) Direct relief through property tax rebates or exemptions for low-income households; 2) Systemic reforms like differential rates for luxury properties or land value taxes; 3) Targeted programs such as circuit breakers and renter tax credits; 4) Strengthening affordable housing initiatives via zoning reforms, developer incentives, and public land use for affordable projects. These measures can balance tax relief with the need for public service funding.

Conclusion

Fort Lauderdale’s stable property tax rates mask a significant affordability challenge, as rising home values have driven a 56.80% increase in Broward County’s tax burden since 2019. With a home price-to-income ratio of 6.875-8.0, homeownership is seriously unaffordable for many. Exemptions provide relief but create disparities, and local policies aim to increase affordable housing supply. A balanced approach—combining direct tax relief, systemic reforms, and a focus on affordable housing—can help Fort Lauderdale address these challenges and foster a more accessible housing market.