“Florida is in a pretty good position because we don’t have state income tax,” said Maria Wells, Florida Realtors president. “The $10,000 [state and local tax deduction cap] will cover most homeowners, especially for affordable housing. For second home markets or more expensive markets, it’s another story. I don’t think it’s going to be too discouraging for first-time homebuyers because the $10,000 should cover their property taxes.”

And while most property taxpayers in Miami will be able to deduct the full tax amount on their federal taxes, residents of other high-tax states will not. That might cause more residents from the Northeast and beyond to consider moving to Miami. The tax savings for those who make such a move might even be greater with the new legislation, and more wealthy transplants would in turn be a boon to the Miami housing market.

With its low taxes, “Florida saves itself,” said Nelson Duque, senior managing director for Fortune International Realty. “Every place but us, it’s looking worse. In New York, it’s 20 degrees. Miami doesn’t have an income tax [like New York City does]. Why wouldn’t they consider moving here?”

The bill will mean different things to different people. The overwhelming majority of the country won’t be impacted by reducing the mortgage interest deduction from $1 million to $750,000, seeing as the median mortgage in the country is closer to $200,000. Miami’s luxury homebuyers would theoretically be most impacted by these provisions, but the impact isn’t likely to slow demand, said Jill Penman, principal real estate agent for Jill Penman Group. Plus, those wealthy homebuyers will likely see savings from other provisions in the tax bill that can offset the increases in homebuying.

“I don’t expect this to be a big issue for many homebuyers in such an affluent market like Miami, but the optics of it could stall some buyers on the fence, especially newbies,” Penman said. “In the long term, though, this, in my opinion, was a fringe benefit of homeownership, and the other benefits of homeownership beyond a tax deduction will keep demand strong.”

Local tax issue

There is a tax issue that is unique to Florida, and its residents will decide its fate in the November elections.

A constitutional amendment that limits how fast a home’s assessed value can rise from year to year will sunset in 2019. But legislators approved another constitutional amendment that will ask Florida voters to rescind the rule or make it permanent, and the question will be posed to midterm voters in November. The amendment will need be to be approved by 60 percent of voters in order to be enacted.

The amendment would allow for an additional $25,000 homestead exemption for properties valued at more than $100,000 and would make permanent a 10 percent cap on annual increases in assessment for non-homestead properties, which are big business in Miami real estate. The Florida Association of Realtors has launched an ad campaign championing the amendment, saying it would prevent property taxes from skyrocketing in areas where property values have soared.

“Amendment 2 really is good for everybody because if the non-homestead tax cap expires in 2019, every Floridian will be negatively impacted in some way,” Wells said in a press release. “Whether it’s a business having to increase the cost of their goods and services or tenants having their rent go up a significant amount, communities across the state will suffer.”

Inventory

The Miami area is dealing with inventory problems on two different fronts. On one hand, some parts of the metropolitan area are oversaturated with condos, with overbuilding a persistent issue. In other areas, there isn’t enough affordable housing to go around.

“Definitely we still have very tight inventory, especially in affordable housing,” Wells said. “It makes it difficult for first time buyers, but also for those who are in those homes, and where are they gonna go if they sell their homes?”