Florida passes crucial housing reforms to tackle affordability crisis

In May 2025, significant changes to state housing law occurred in Florida with the passing of Senate Bills 1730 and 180. These reforms permit developments as long as at least 40% of the new units are designated as affordable for a period of 30 years. Additionally, the Live Local Act offers substantial property tax exemptions if these affordability criteria are met. However, further modifications introduced by House Bill 7073 restrict developments near single-family homes and allow counties to opt out of the property tax exemptions if a surplus of units exists in that county. Senate Bill 180 also standardizes impact fees charged for rebuilding after disasters, ensuring that local governments cannot charge these fees if the reconstruction does not exacerbate public facility strain. This is vital for communities looking to rebuild without imposing further financial burdens on residents. Some experts view these reforms as monumental steps to alleviate Florida's escalating housing prices that stem from a severe shortage of affordable homes. However, challenges remain, particularly in cities like Sarasota. The local government’s reluctance to issue permits for affordable housing has led to minimal construction of multi-family residential units, resulting in increased housing demand and subsequent sprawl. Only 4% of permits issued in the past five years allowed for the development of attached housing like duplexes and quadplexes, which is necessary to meet the needs of middle-income earners. Efforts to mitigate this downfall include policies encouraging localities to allow affordable housing developments on commercial and mixed-use properties, yet many barriers still hinder progress. The situation underscores the urgent need for innovative policies to tackle the affordable housing crisis, which is exacerbated by local governments' failure to facilitate sufficient housing development. Without transformative approaches to zoning and permitting, many workers will continue to face long commutes, while rising home prices will put even further strain on low and middle-income families seeking homes in Florida's competitive housing market.