The value of residential properties is up in Arlington, but the torrid growth of past years has slowed.
Arlington County announced today that residential property assessments are up 3.2% for 2024. The overall property assessment growth was 2.5%, with commercial properties up 1.6%. New construction contributed significantly to the overall growth.
The announcement comes as the county starts to mail assessment notices to property owners today. Assessments will also be available online starting at 6 p.m.
Single-family home values rose more than $25,000, on average, according to the county.
“The average single-family property value increased from $798,500 to $824,700,” Arlington County said in a press release. “For 2024, approximately 70 percent of residential property owners saw their assessed value increase while the rest remained unchanged or declined.”
The 3.2% residential assessment growth this year is lower than the 4.5% reported last year, 5.8% in 2022, 5.6% in 2021 and 4.3% in 2020. Inflation last year, meanwhile, just clocked in at 3.4%.
The full press release is below.
Arlington’s overall property tax base grew from 2023 following continued residential growth and new construction, while total commercial values showed a slight increase.
The total assessed value of all residential and commercial property in Arlington increased 2.5 percent in calendar year 2024, compared to 3.7 percent growth in 2023. Residential property values increased 3.2 percent while commercial property values increased 1.6 percent. New construction contributed to 1.7 percent of the 2.5 percent tax base growth.
“The increase in residential property values for this year shows the continued attractiveness of our Arlington community, even as we adapt to changing realities,” said County Manager Mark Schwartz. “The investment we make in our community from real estate tax revenue helps us to fund the County’s high-quality programs and public services for our residents, visitors, and businesses.”
Notice of Assessments will be mailed to Arlington property owners beginning Jan. 12, 2024.
Real estate taxes provide almost 60 percent of total County revenues. The County’s real estate tax base is split between residential (55 percent) and commercial (45 percent) property assessments.
Commercial property values increased by 1.6 percent from the previous year. Existing office property values decreased by 11 percent due to continued pressure of office vacancy rates and changing demand for office space but were partially offset by new construction. Significant investments in the Crystal City area, among others, bolstered the decreasing overall office market with new construction value added to the tax base. As a result, the overall tax base for the office market was reduced by 8.5 percent.
The average single-family property value increased from $798,500 to $824,700. For 2024, approximately 70 percent of residential property owners saw their assessed value increase while the rest remained unchanged or declined. Residential properties include condominiums, townhouses, and detached homes.
The apartment sector experienced strong growth, up almost 9.5 percent, boosted by significant new construction. General commercial (malls, retail stores, gas stations, commercial condos, etc.) property values showed slight declines in value, decreasing 2.4 percent, while hotel/motel properties increased 1.7 percent as their business has returned to pre-pandemic levels.
Pressures for the Upcoming County Budget
In December 2023, the County Board directed the County Manager to propose a balanced budget with multiple options including:
- Service and program efficiencies, including options for service delivery reductions and eliminating activities that are no longer priorities along with the possibility of an increase to the real estate tax rate, providing it meets with certain County Board parameters;
- Funding WMATA operations at the legislatively allowed maximums, provided that no tax increase or program reductions should fund amounts above these levels;
- Prudent use of one-time funding;
- Full funding of the collective bargaining agreements;
- Funding affordable housing priorities, including eviction prevention, housing grants, and maintaining level ongoing funding for the Affordable Housing Investment Fund;
- Provide funding and/or program options to help address emergency food assistance;
- Funding Arlington Public Schools consistent with the Principles of Revenue Sharing.
The County Manager will present his proposed budget to the Board in February 2024.
About Real Estate Assessments
Real estate assessments are the County’s opinion of fair market value for each parcel of real property in Arlington. Assessments are made annually using accepted methods, standards and techniques of the real estate appraisal and assessment profession. For more information, visit the County webpages on real estate assessments.