Welcome to Kami’s Korner, where we’ll take a deep dive into Arlington’s condominium market by focusing on what’s coming next. From emerging developments to shifting trends, this space will spotlight the opportunities and insights shaping the future of condo living in Arlington.
What defines luxury in housing? It’s perhaps the most overused word in the English language. I recently saw a sign for “Affordable Luxury Apartments” and smiled to myself. Arlington, particularly Rosslyn, with communities like Turnberry Tower, Pierce, and Gaslight Square, has achieved critical mass in luxury condominium options. The condo market in Arlington continues to get better, consumers demand more thoughtful design, and local product becomes more desirable. For new condominiums, luxury is really made up of two factors: price point of the offering (a reflection of location, unit finishes and quality of plan), and condo fees (amenities, level of service.)
Pricing is predominantly set by the location. A majority of value is determined by neighborhood desirability, socio-economics of its residents, quality of schools, convenience to employment, retail, transit, market factors, and social centers. Arlington has all of these in spades!
Additional value can be achieved beyond the location with details such as size of home, finish details, livability of the floor plan, number of beds/baths, garage parking, view, light, and height within the building. The Arlington condo environment is mainly mid-market, which includes pricing from about $300K to $1M. $800K is a critical price point in Arlington where the condo buyer demographic shifts. With new condominiums, the demographic shifts from slightly younger singles to become older and more often coupled.
As I mentioned in the previous article, condominiums have long been affordable and an easy entry point into homeownership. Therefore, condominium pricing generally needs to be over $1M to be considered luxury, but it also depends on what $1M might buy you (a new high-end 1-bed den in a building with price points up to $3M, versus a large but dated 3-bedroom in an older community where it’s the most expensive residence.) It’s tough for a floor plan under 1000 square feet to be considered true luxury unless it’s the smallest one in the building.
The other piece of the story is the level of service offered by the condominium. Generally, mid-market condominiums have monthly condo fees under $.85/sq ft. Luxury condominiums have fees between $0.85-$1.25/sq ft in the DC metro area. It might surprise you that the biggest expense to the community is usually full-time staff. To offer a high level of personalized service a building must employ a fair number of people. Paying a doorman $100k per year is more expensive than swapping out the furniture on a common terrace.
The fees also tend to be lower in bigger buildings because there are more units sharing the cost. Buildings with lots of community amenities typically require more upkeep and will reflect slightly higher fees. One of the biggest benefits of buying a new condominium is that the building is at its most healthy. Major repairs or replacements are not yet required so assessments tend to be less frequent and more thoughtful.
We may or may not like it, but due to business economics and local demand, Arlington’s new condominium market is becoming more high-end rather than more affordable. The average unit size for the next set of truly luxurious offerings coming to market will be over 1500 sq ft. That’s more than double the average size in a mid-market community. Similarly, the condo fees will be above $.85.
Overall pricing and condo fees within the community tell you exactly what type of condominium community it is if you know what to look for. Is it a true luxury building or a mid market community with a few luxury units sprinkled in? Projects that are in planning are more high-end than what has been delivered to date. Each upcoming project is an opportunity to push the design team toward something exceptional that our true luxury market will excitedly embrace. Until then, I need a new word for luxury.
Do send along your questions, inquiries, and design preferences for the next generation of condominiums to our market. My personal email is: [email protected]
