florida’s economy and real estate policy issues john tuccillo florida realtors...
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Population Growth
Produced by Florida REALTORS® with data provided by the U.S. Bureau of the Census
Population Growth
Employment Growth
Florida Employment Year-Over-Year Change
Population Growth
Employment Growth
Financial Market Performance
Primarily for areas with a sizeable retiree
population or luxury market
Population Growth
Employment Growth
Financial Market Performance
New Construction
Produced by Florida REALTORS® with data provided by the U.S. Bureau of the Census
Population Growth
Employment Growth
Financial Market Performance
New Construction
Investor Participation in the Market
Produced by Florida REALTORS® with data provided by Florida’s multiple listing services
Population Growth
Employment Growth
Financial Market Performance
New Construction
Investor Participation in the Market
Mortgage Rates and Availability
Population Growth
Employment Growth
Financial Market Performance
New Construction
Investor Participation in the Market
Mortgage Rates and Availability
Inflation Rates
Inflation will pick up at some point but not in
the immediate future
Currently held down by low oil prices
No real threat of deflation
Water Quality and Real Estate Values
Model: Control Characteristics Structural characteristics
physical features of the property itself
Sale characteristics circumstances of the home’s sale
Neighborhood characteristics demographics of residents of the area immediately surrounding the home
Jurisdictional characteristics impact of local government services and public schools
Regional characteristics “macro” housing market conditions at a regional/state level
Flood risk characteristics risk posed to home by flooding
Water proximity location of the home with respect to various water bodies
Time fixed effects control for seasonal and annual effects in the housing market
Lee Co.: Price impact of a one-foot change in water clarity (1-mo. avg).
Location of Single Family Home Chg. in Clarity Chg. in Value
Caloosahatchee Estuary - waterfront
+ 1 foot + 2.47%
1/8 mile from waterfront + 1 foot + 1.93%
1/4 mile from waterfront + 1 foot + 1.50%
1/2 mile from waterfront + 1 foot + 0.91%
1 mile from waterfront + 1 foot + 0.34%
2 miles from waterfront + 1 foot + 0.045%
4 miles from waterfront + 1 foot + 0.00083%
Martin Co.: Price impact of a one-foot change in water clarity (1-mo. avg).
Location of Single Family Home Chg. in Clarity Chg. in Value
St. Lucie & Loxahatchee estuaries, & Indian River Lagoon – waterfront
+ 1 foot + 5.41%
1/8 mile from waterfront + 1 foot + 4.21%
1/4 mile from waterfront + 1 foot + 3.28%
1/2 mile from waterfront + 1 foot + 1.99%
1 mile from waterfront + 1 foot + 0.73%
2 miles from waterfront + 1 foot + 0.10%
4 miles from waterfront + 1 foot + 0.0018%
Commercial Lease Tax and Corporate Income Tax
What is the issue?
Florida levies both a corporate income tax and a tax on commercial rents
Florida Realtors had advocated for a phase out of the commercial rents tax (Senate Bill 116)
The Governor would rather cut the corporate tax by raising the exemption (Senate Bill 76)
He won’t do both
Tax Facts
Only six states have a rate below Florida’s Corporate Income Tax applies only to C
Corporations 93 percent of those who file pay no taxes Maximum savings from the proposed
increased exemption is $1,375 All businesses that rent commercial space
pay taxes on those rents
Tax Watch Analysis
Corporate Tax Rents Tax
Employment 3,981.39 4,952.35
Labor
Income $170 m $210 m
Value Added $293 m $368 m
Output $513 m $640 m