How Assumable Loans & No Property Taxes Could Explode Florida’s Housing Market in 2026

If Florida pulls this off, the real estate market won’t just “recover” — it’ll explode.

And if you understand what’s coming before everyone else does, you’ll be in position to land some of the best deals in the Sunshine State… whether you’re buying or selling.

In this post, I’ll break down:

• The real reason the market feels frozen right now

• Why 50-year mortgages are a gift to banks, not buyers

• How assumable loans could unlock thousands of “hidden” affordable homes

• Why eliminating property taxes on primary homes would pour gasoline on the fire

• What smart buyers and sellers should do now to get ahead of the curve

Let’s jump in.

Why Florida’s Housing Market Is Frozen (It’s Not What You Think)

This isn’t just a Florida problem — it’s national. Only a tiny fraction of homes have been changing hands compared to a normal market. Translation: almost nobody is moving, and everything feels stuck.

The big culprit?
Ultra-low interest rates from the last decade.

More than 70% of homeowners in the U.S. are sitting on mortgages under 5%. Many are in the 2–3% range.

That’s not just “nice to have.” That’s like owning a personal gold mine in a world where borrowing is suddenly expensive.

If you’ve got a 3% mortgage, you’re not exactly eager to trade it for 6–7%. So you stay put. Your mortgage becomes a golden ticket you don’t want to give up.

Now layer on Florida’s homestead rules:

• Stay in your house → your property taxes are capped and stay relatively low.

• Sell and buy a new place → your taxes reset to today’s higher value and can double or even triple.

So the decision isn’t just:

“Do I want to move?”

It’s really:

“Do I want to give up my low payment and take on higher property taxes?”

For most people, the answer is: Hard pass.

Result?

• Sellers: Locked in with low rates and low taxes, plenty of equity, zero motivation to move.

• Buyers: Still want to move to Florida (or move up within Florida), but can’t make the payments work with today’s rates and taxes.

That’s what a frozen market looks like. The demand is there. The people are ready. The money doesn’t pencil.

How Higher Rates Destroy Affordability (Same House, Bigger Payment)

Here’s a simple example.

Let’s say a home is worth $1.3M today.

• At 3% interest, with 20% down, the monthly principal & interest is around $4,385.

• At 6% interest, same house, same down payment, the payment jumps to about $6,235.

That’s roughly $1,850 more every month… for the exact same house.

Nothing about the house changed.
The only thing that changed is the interest rate.

And here’s where it really hurts: if your income doesn’t support that extra $1,800 per month, the bank simply won’t approve you.

It’s not about what people want — it’s about what they qualify for.

So you end up with:

• People who want to move but can’t make the numbers work

• Sellers who refuse to slash prices, because they remember what their neighbor got when rates were low

• A move-up market that normally keeps everything flowing… just dries up

No one wants to sell.
Buyers can’t afford what’s listed.
Everything stalls.

The “Solution” Banks Want: The 50-Year Mortgage Trap

One of the big ideas being floated is the 50-year mortgage.

On the surface, it sounds helpful:

• Longer term

• Lower monthly payment

• More people “qualify”

But look closer. On a $700,000 purchase with 20% down at 6% interest:

• 30-year loan

  • P&I: ≈ $3,357/month

  • Total interest over 30 years: ≈ $650,000

• 50-year loan

  • P&I: ≈ $2,948/month

  • Total interest over 50 years: ≈ $1.208 million

Yes, your monthly payment goes down a few hundred dollars.

But the extra 20 years in debt costs you roughly $560,000 more in interest.

And here’s the kicker: the median first-time buyer in the U.S. is about 40 years old.
A 50-year loan means you’re making mortgage payments until you’re about 90.

That’s not a housing solution.
That’s a lifetime subscription to your bank.

So if 50-year mortgages aren’t the answer… what is?

The Real Game Changer: Assumable Loans

This is where it gets exciting.

There’s serious talk at the federal level about expanding assumable (or portable) conventional mortgages — not just FHA/VA. If this gets implemented, it could blow the market wide open.

What’s an assumable loan?

Instead of the buyer getting a brand new mortgage at today’s higher rate, they take over the seller’s existing loan:

• Same balance

• Same interest rate

• Same remaining term

Let’s run the numbers.

Say a seller has:

• Home value: $700,000

• Existing mortgage: $500,000 at 3%

• Loan is assumable

You, as the buyer:

• Assume their $500,000 loan at 3%

• Put 20% down ($140,000)

• That leaves $60,000 to cover, which you finance with a small second loan at a higher rate

So instead of:

Borrowing the full $700,000 at 6–7%

You’re now:

• Borrowing $500k at 3% (super cheap money)

• Borrowing $60k at the higher rate

• Bringing in a strong down payment

The monthly payment suddenly becomes realistic again.

Now imagine this happening across the country:

• Roughly 70% of existing mortgages are under 5%

• Even if a fraction become assumable, that unlocks a huge pool of affordable financing

And here’s the beautiful part:

When you go to sell one day, your buyer could potentially assume that same 3% loan from you.

That low rate becomes part of the house’s value — a built-in advantage that makes your home stand out in any market.

Now Stack This: Eliminating Property Taxes on Primary Homes

Take everything we just talked about…
Now stack on top a serious push in Florida to eliminate property taxes on primary residences.

If Florida actually pulls this off, you’re removing the two biggest anchors holding people back:

1. High interest rates → solved by assumable loans

2. High property taxes → reduced or removed on primary homes

That’s not a minor tweak.
That’s a full-on market reset.

What happens next?

• Buyers who were on the sidelines suddenly jump in

• Sellers with low-rate mortgages have a huge new selling point (“Assumable 3% loan + no property tax on your primary home”)

• Inventory starts moving

• Florida becomes even more attractive vs. high-tax, high-cost states

This is how you unfreeze a stuck market.

What Smart Buyers Should Be Doing Now

If assumable loans are rolled out widely — and there’s momentum building — the opportunity window will be most generous at the beginning, before the crowd catches on.

If you’re a buyer, here’s how to prepare:

• Watch for these phrases in listings:

  • “Assumable mortgage”

  • “Seller financing”

  • “Rate buy-down available”

• Get your finances dialed in now.
  When those assumable opportunities hit the MLS, the prepared buyers will move first.

• Use the 10-year rule.
  Stop trying to perfectly time the market. Ask:

  “Can I see myself living in this home for at least 10 years?”
  If yes — and the payment works for your budget today — you’re probably in good shape long term.

Waiting for the “perfect” moment is how people stay on the sidelines for years while prices and rents drift higher.

How Smart Sellers Can Turn Their Low Rate Into a Bidding War

If you’re a seller sitting on a 3–4% mortgage, you’re not just a homeowner — you’re holding a premium asset that could make your property stand out from every other listing.

Once assumable loans become a mainstream reality:

• Advertising “Assumable 3% mortgage available” in your listing will be like hanging a giant neon sign saying:

  “Lower payments here!”

• You’ll likely attract:

  • More showings

  • Better-quality buyers

  • The potential for multiple offers

• You may even get:

  • Over asking, not because the house is wildly underpriced…

  • But because the financing is so attractive that buyers are willing to pay a premium for it.

On top of that, if property taxes on primary homes come down or disappear, it becomes even easier for buyers to say yes to your home.

Your strategy as a seller becomes:

1. Protect your equity

2. Use your low-rate loan as leverage

3. Market your property not just as a house — but as a financial advantage

Stop Waiting for the Perfect Crash

Quick story.

Back in 2016, I bought a rental property for about $65,000. A friend told me I was crazy. He swore another 2008-style crash was coming and he’d wait to buy something similar for $25,000.

Fast forward a few years: I sold that same place for around $170,000.

He’s still waiting for the “perfect crash” that never arrived.

That’s why I always say:

The only two things people don’t buy when they go on sale are real estate and stocks.

When markets slow down, when everyone’s nervous, when the headlines are scary — that’s often when the best deals appear for people who are thinking long term and running the numbers, not just following the crowd.

The Bottom Line: Get Ready for the Thaw

We’re on the edge of a major shift.

• Assumable loans could unlock trapped low-rate mortgages and set real estate in Florida on fire again.

• Eliminating property taxes on primary homes would supercharge demand and mobility.

• Sellers with low-rate loans will have massive leverage.

• Buyers who prepare early will be in the best position to grab the opportunities everyone else wakes up to later.

If you’re thinking about buying or selling in Florida in the next few years, now is the time to:

• Educate yourself on assumable and seller-financed options

• Get your financing lined up

• Talk with a real estate professional who understands these strategies and can help you spot the right deals

The market isn’t broken. It’s just stuck.
Assumable loans and primary-home tax relief are the combination that could finally unstick it — and if you’re ready, you won’t just watch it happen… you’ll benefit from it.