Buying new construction in Orlando and Tampa: deposits, CDDs and what to check (2026)

Updated October 19, 2026. 5 min read.

In Orlando and Tampa, new construction is growing mostly in the surrounding counties, such as Osceola, Polk, Pasco and Lake. When you buy a new home from a builder, Florida law only protects your deposit in escrow up to 10% of the price, and you can waive that protection in writing. Before signing, check whether the home is in a CDD, which charges its own fee on the property tax bill; the HOA summary; what the tax will be once the home is finished; and the flood risk, which homeowners insurance doesn't cover.

Why Orlando and Tampa

The Orlando area was the 10th in the country for population gains between 2024 and 2025, according to the Census: 37,690 more people, reaching 2,957,672. Lakeland–Winter Haven, in Polk County between Orlando and Tampa, was 4th in the country by percentage growth.

New construction is mostly on the edges. In 2025, 14,198 single-family homes were permitted in the Orlando area and 13,596 in the Tampa area, 7th and 8th in the country. By county, Polk (6,725), Pasco (6,191) and Osceola (5,085) permitted more than Hillsborough (4,295) and Orange (4,221), home to Tampa and Orlando.

Florida also has no state income tax on individuals.

Your deposit: the law protects less than with a condo

If the builder sells 10 or more homes a year, the law (Statute 501.1375) requires it to put your deposit in an escrow account, but only up to 10% of the price and unless you waive that in writing. The contract must carry that warning in capital letters.

The builder can take the money out of escrow for construction if it notifies you first and buys a surety bond in your favor.
Anything you pay above 10% has no such protection. With a condo, by contrast, anything above 10% goes into a separate special escrow account (buying a pre-construction condo in Miami).

Don't sign the waiver without understanding what you give up, and ask where your deposit goes and who holds it.

What you pay on top of the price: CDDs and HOAs

A CDD (community development district) uses bonds to pay for the neighborhood's streets, water and common areas. If the home is in one, the contract carries a mandatory notice next to your signature: the district may levy taxes or assessments, set every year and on top of county taxes. The fee comes on the same property tax bill, and the homestead exemption doesn't reduce it. Every district must have an official website with its information.
The HOA. The builder must give you its disclosure summary before you sign. If it didn't, you can void the contract in writing within 3 days of receiving it or before closing, whichever comes first. While the builder controls the association, it can change the rules.

Property tax and homestead

The first bill is misleading. The home is assessed on January 1, and anything not finished by that date doesn't count. If you get the keys mid-year, the first bill may be almost just the land and the next one much higher. That's why the contract warns you not to rely on the seller's current taxes. Ask the county property appraiser for an estimate with the home finished.
Homestead. If the home is your permanent residence on January 1, the 2026 exemption reaches $51,411 of assessed value: $25,000 for all taxes and $26,411 more for non-school taxes. You apply by March 1. With homestead, the assessed value rises at most 3% a year, and if you already had homestead in Florida you can carry over the accumulated difference, up to $500,000.
Amendment 3, pending a vote. On November 3, 2026, voters decide on a proposal that, if 60% approve it, would raise the non-school exemption to $150,000 in 2027 and $250,000 in 2028. Anyone who moves to Florida from 2027 on would start with $50,000 and get the larger one from the fifth year. We'll update this guide after the vote.

Flood and wind

Homeowners insurance doesn't cover floods, and a federal flood policy takes 30 days to start. According to FEMA, in high-risk zones there's at least a one-in-four chance of flooding during a 30-year mortgage, and nearby construction can also raise the risk. Look up the lot on the FEMA flood map and get an insurance quote before signing, not at closing.
The seller's flood disclosure will almost always say "no" on a new home: it covers what happened during their ownership, not the lot's risk.
Citizens, the state insurer, will require separate flood insurance on every home it covers starting January 1, 2027.
Wind. A home built to the Florida Building Code qualifies for hurricane insurance discounts. Ask the builder for the roof and window documents.

If a defect shows up

Before suing the builder you must notify it in writing 60 days ahead, so it can inspect and offer a repair. The deadline to sue is 7 years from the certificate of occupancy (it was 10 before 2023). Even though the law doesn't require it, hire your own inspector during construction and before closing.

Buying in Florida with Instadigs

Digger AI Agent finds new construction in Orlando, Tampa or any town you name, checks who's building, what they've delivered and whether there are delays, and runs the numbers with the banks' rule: housing shouldn't exceed 28% of your income. If you want, it represents you in a Move: our licensed Florida broker, the Broker of Record, handles the purchase, and 100% of the Instadigs commission comes back to you as a credit at closing, with your lender's approval if you have a mortgage (how it works and what the law says). We cover closing taxes in Florida closing costs.

Frequently asked questions

Is my deposit protected if I buy a new home in Florida?

Up to 10% of the price, yes: the law requires the builder to put it in escrow, unless you waive that in writing. Anything above that 10% has no such protection. Check whether your contract includes the waiver.

What is a CDD and how is it paid?

A district that uses bonds to pay for the neighborhood's streets, water and common areas. Its fee comes on the property tax bill, its board sets it every year and homestead doesn't reduce it. The mandatory notice sits next to your signature in the contract.

How much does homestead save in Florida?

In 2026, up to $51,411 of assessed value: $25,000 for all taxes and $26,411 more for non-school taxes. The assessed value also can't rise more than 3% a year. You apply by March 1.

What would Amendment 3 change?

It's a proposal on the November 3, 2026 ballot. If 60% approve it, the non-school exemption would rise to $150,000 in 2027 and $250,000 in 2028, and anyone moving to Florida from 2027 would get the larger one from the fifth year.

Do I need flood insurance if I'm not in a risk zone?

Lenders only require it in high-risk zones, but homeowners insurance doesn't cover floods and the policy takes 30 days to start. And if Citizens insures you, from 2027 it always requires it.

Sources

This guide explains how buying works in general. Rates and requirements are set by law, by each bank and by each developer, and they can change: the date above is when it was last reviewed.

Buying new construction in Orlando and Tampa: deposits, CDDs and what to check (2026)

Updated October 19, 2026. 5 min read.

Why Orlando and Tampa

Florida also has no state income tax on individuals.

Your deposit: the law protects less than with a condo

The builder can take the money out of escrow for construction if it notifies you first and buys a surety bond in your favor.
Anything you pay above 10% has no such protection. With a condo, by contrast, anything above 10% goes into a separate special escrow account (buying a pre-construction condo in Miami).

Don't sign the waiver without understanding what you give up, and ask where your deposit goes and who holds it.

What you pay on top of the price: CDDs and HOAs

A CDD (community development district) uses bonds to pay for the neighborhood's streets, water and common areas. If the home is in one, the contract carries a mandatory notice next to your signature: the district may levy taxes or assessments, set every year and on top of county taxes. The fee comes on the same property tax bill, and the homestead exemption doesn't reduce it. Every district must have an official website with its information.
The HOA. The builder must give you its disclosure summary before you sign. If it didn't, you can void the contract in writing within 3 days of receiving it or before closing, whichever comes first. While the builder controls the association, it can change the rules.

Property tax and homestead

The first bill is misleading. The home is assessed on January 1, and anything not finished by that date doesn't count. If you get the keys mid-year, the first bill may be almost just the land and the next one much higher. That's why the contract warns you not to rely on the seller's current taxes. Ask the county property appraiser for an estimate with the home finished.
Homestead. If the home is your permanent residence on January 1, the 2026 exemption reaches $51,411 of assessed value: $25,000 for all taxes and $26,411 more for non-school taxes. You apply by March 1. With homestead, the assessed value rises at most 3% a year, and if you already had homestead in Florida you can carry over the accumulated difference, up to $500,000.
Amendment 3, pending a vote. On November 3, 2026, voters decide on a proposal that, if 60% approve it, would raise the non-school exemption to $150,000 in 2027 and $250,000 in 2028. Anyone who moves to Florida from 2027 on would start with $50,000 and get the larger one from the fifth year. We'll update this guide after the vote.

Flood and wind

Homeowners insurance doesn't cover floods, and a federal flood policy takes 30 days to start. According to FEMA, in high-risk zones there's at least a one-in-four chance of flooding during a 30-year mortgage, and nearby construction can also raise the risk. Look up the lot on the FEMA flood map and get an insurance quote before signing, not at closing.
The seller's flood disclosure will almost always say "no" on a new home: it covers what happened during their ownership, not the lot's risk.
Citizens, the state insurer, will require separate flood insurance on every home it covers starting January 1, 2027.
Wind. A home built to the Florida Building Code qualifies for hurricane insurance discounts. Ask the builder for the roof and window documents.

If a defect shows up

Buying in Florida with Instadigs

Frequently asked questions

Is my deposit protected if I buy a new home in Florida?

What is a CDD and how is it paid?

How much does homestead save in Florida?

In 2026, up to $51,411 of assessed value: $25,000 for all taxes and $26,411 more for non-school taxes. The assessed value also can't rise more than 3% a year. You apply by March 1.

What would Amendment 3 change?

Do I need flood insurance if I'm not in a risk zone?

Lenders only require it in high-risk zones, but homeowners insurance doesn't cover floods and the policy takes 30 days to start. And if Citizens insures you, from 2027 it always requires it.

Sources

This guide explains how buying works in general. Rates and requirements are set by law, by each bank and by each developer, and they can change: the date above is when it was last reviewed.