JACKSONVILLE, Fla. – Florida lawmakers are directing hundreds of millions of dollars toward housing affordability in the newly approved state budget, targeting programs that help essential workers and working families buy homes. But some housing experts say the funding doesn’t fully address what’s driving the state’s affordability crisis.
The budget includes:
- $50 million for the Hometown Heroes Housing Program, which helps essential workers — including firefighters, paramedics and law enforcement officers — purchase their first home
- $165 million for the State Housing Initiatives Partnership (SHIP), which helps residents afford housing
- $70.8 million for the State Apartment Incentive Loan (SAIL) program, which funds the construction of affordable housing
What’s fueling Florida’s housing crisis
Florida has been grappling with an affordability crisis driven by soaring home prices, rising insurance costs and years of rapid population growth.
Jon Brooks, a real estate agent with Momentum Realty, says the state’s housing market was rocked by a surge in demand between 2020 and 2023 that sent prices skyrocketing. He welcomes the new state investments but says they can only go so far.
“The majority of the issue is that the builders have been building in what I call mid-level luxury, which is $500,000 to a million dollars, because their profit margins are higher there,” Brooks said. “But that’s caused us to have a lack of supply of starter homes, which is what we really need — more supply of inventory from $200,000 to $400,000 that the locals can actually afford.”
‘Payment shock’ pushing buyers to the sidelines
The affordability squeeze is also reshaping Florida’s image. Local realtors told News4JAX that more middle-class families are looking outside the state to buy a home.
One News4JAX Insider put it plainly: “Everything is extremely high right now — housing, groceries and gas. I’m working two jobs and barely scraping by.”
Brooks says many prospective buyers are experiencing what he calls “payment shock” — the moment they see a mortgage estimate and reconsider their plans altogether.
“They get payment shock. When they get the estimate from the lender and they see how much the payment would be, they start to pull back and say, ‘Wait a minute, maybe I should just rent for a couple more years,’” Brooks said. “Because sometimes renting is $1,000 to $1,500 less per month. So right now they’re frustrated.”
What state leaders are saying
State leaders say the budget investments are intended to expand housing opportunities across Florida and help more working families achieve homeownership, as they work alongside local initiatives to make living more affordable.