Join Club

JUST IN: Residential property assessment rise continues but decelerates

Real estate for sale sign in the Arlington Heights neighborhood (staff photo by Jay Westcott)

The U.S. real estate market is facing significant headwinds, but Arlington property assessments are continuing their march upward.

Arlington County announced today that overall assessments of residential and commercial properties rose 3.6% for 2023, compared to 3.5% for 2022. Residential values are up 4.5% while commercial values are up 2.6%.

“The increase in property values continues to show that Arlington remains a place people want to live and work,” County Manager Mark Schwartz said in a statement. “And it’s the revenue generated from these real estate taxes that help to fund the County’s high-quality services and public services for residents, visitors, businesses and workers.”

The average single-family home in Arlington is now assessed at $798,500, compared to $762,700 last year. The rise comes despite the local real estate market experiencing many of the challenges also seen in the national market, precipitated by rising interest rates.

The rate of property value increase, however, has slowed compared to the previous two years. Residential values were up 5.8% in 2022 and 5.6% in 2021. In 2020, residential values rose 4.3% and were outpaced by a 4.9% rise in commercial values, prior to the pandemic causing the office vacancy rate to spike and values to in turn go down.

Arlington has for years relied on a balanced residential and commercial tax base, which allows it to grow its budget and embark on large projects while keeping real estate tax rates at levels slightly below many of its Northern Virginia neighbors.

The weakness in office assessments, while offset by rises in other commercial property like hotels and apartment buildings — and bolstered by new construction — is a contributing factor what is currently projected to be a nearly $35 million budget gap.

Arlington County Manager Mark Schwartz is scheduled to present his proposed FY 2023-2024 budget to the County Board next month.

Local homeowners, meanwhile, will be able to view their new assessments online after 11 p.m. tonight (Friday), the county said. There is an appeal process for those who disagree with their assessments.

More on the newly-released assessments, below, from the county press release.

Arlington’s overall property tax base grew from 2022 due to continued residential growth, while existing commercial values were relatively flat.

The total assessed value of all residential and commercial property in Arlington increased 3.6 percent in calendar year 2023, compared to 3.5 percent growth in 2022. Residential property values increased 4.5 percent, while commercial property values increased 2.6 percent. New construction contributed to 0.8 percent of the 3.6 percent tax base growth.

The 4.5 percent increase in residential property values increased the average single-family property from $762,700 to $798,500. For 2023, approximately 76 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.

Notice of Assessments will be mailed to Arlington property owners beginning January 13, 2022.

Real estate taxes provide almost 60 percent of total County revenues. The County’s real estate tax base is spilt roughly equally between residential (55 percent) and commercial (45 percent) property assessments.

“The increase in property values continues to show that Arlington remains a place people want to live and work,” said County Manager Mark Schwartz. “And it’s the revenue generated from these real estate taxes that help to fund the County’s high-quality services and public services for residents, visitors, businesses and workers.”

Commercial property values increased by 2.6 percent from the previous year. Existing office property values showed a very modest decrease but were offset by new construction. General commercial (malls, retail stores, gas stations, commercial condos, etc.) property values improved on their performance last year, increasing 4 percent overall.

Hotel property values increased by 7.5 percent as occupancy and room rates continue to recover from the initial lows observed at the beginning of the COVID-19 pandemic.

Existing apartment property values increased by 0.7 percent over the previous year. Continuing demand for new construction helped contribute to overall apartment growth of 2.6 percent.

Pressures for the Upcoming County Budget

The County is facing challenges in the FY 2024 budget, with a preliminary funding gap of more than $30 million due to the growth in expenses outpacing the growth in revenue. Commercial vacancies continue to impact revenue; expense pressures include increasing costs for goods and services, higher interest rates, and wage growth.

In December, the Arlington County Board directed County Manager Mark Schwartz to develop the FY 2024 budget with multiple options including:

  • Service and program efficiencies, including options for service delivery reductions and eliminating activities that are no longer priorities
  • Prudent use of one-time funding
  • Full funding of the tentative collective bargaining agreements reached this past year
  • Funding affordable housing priorities, including eviction prevention, housing grants, and maintaining level ongoing funding for the Affordable Housing Investment Fund
  • Funding Arlington Public Schools consistent with the Principles of Revenue Sharing

The County Manager will present his budget to the Board in February 2023.

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.

Recent Stories

Truly, it’s the most wonderful time of the year, and I am not talking about St. Patrick’s Day, the start of Daylight Savings, or even the cherry blossoms. It’s the…

Good Friday evening, Arlington. Today we published articles that were read a total of 10800 times… so far. 📈 Top stories The following are the most-read articles for today —…

Update at 9:40 a.m. — The Saturday County Board meeting is underway and 248 people are signed up to speak about Missing Middle. The Board expects to hear speakers today…

This column is written by the team at Arrowine & Cheese (4508 Cherry Hill Road). Sign up for the email newsletter and receive exclusive discounts and offers. Order from Arrowine’s expanding online store for curbside pickup…

Too many of us in our community have experienced wrenching loss lately. It can be particularly tricky to navigate as Spring arrives. While it may feel like the very last thing you are able to do, we urge you to consider a local support group and we have a list of a few that our clients have found to be welcoming and healing. This is by no means a complete list, but from Capital Caring to Haven of Northern Virginia to the Wendt Center to the Dinner Party you will find people who get what you are going through.

Submit your own Announcement here.

Art House 7 is thrilled to announce that the award-winning artist, Teresa Oaxaca, will be returning this Spring to host some amazing weekend workshops! We invite you to join us for two fantastic opportunities to learn from this popular master artist.

Our first workshop, “Drawing the Portrait in Charcoal,” will take place on March 11 and 12. During the class, Teresa will guide students through her approach to drawing the human portrait in charcoal while helping them create their own charcoal portraits of models.

Our second workshop, “Painting the Dutch Tulip from Life,” will be held on April 22 and 23. This two-day class will feature a live demonstration by Teresa as she selects, composes, and paints a beautiful flower. As she works, she will narrate the steps and process, allowing students to follow along and learn the art techniques to create their own stunning paintings of the provided selection of fresh tulips.

Please note that both classes require supplies, which can be found on the workshop registration listings here. If you need art materials, we’ve got you covered at the Art House 7 Store. We sell a broad range of art supplies for all mediums at competitive prices, so you can get everything you need in one convenient location.

Read More

Submit your own Announcement here.

5 Tips for Buying Your Dream Home – A Free…

Are you planning to move in the next 12 months but feeling overwhelmed by the current real estate market’s low inventory and high mortgage rates? Join us for a short seminar where we’ll provide 5 tips to help you find

Free Ice Cream at Nicecream

Locally owned ice cream shop, Nicecream, is celebrating their freezing agent liquid nitrogen (-321°F), Nicecream is offering unlimited, free ice cream all day on March 21st.

On Tuesday March 21, 2023 Nicecream will give out unlimited free ice cream to


Subscribe to our mailing list