Ask Eli

This regularly scheduled sponsored column is written by Carolanne Korolowicz, Arlington-based Realtor and Arlington resident. If you would like to work with Carolanne in Northern Virginia and the greater D.C. Metro area, you can reach her directly at [email protected].

Anyone who commutes into Washington understands why Rosslyn has been coined “The Gateway.” It’s a small taste of what you are about to enter after leaving the Old Dominion. The enclave is home to multiple Fortune 500 companies, swanky dining concepts and residents looking to be DC-adjacent, and for the rest of us– a part of the commute slug. Now a shining example for the county, Rosslyn started off more like a stubborn stain.

Rosslyn’s documented history began on an endearing note with a father, Joseph Lambden, purchasing a substantial portion of property for his daughter and her husband, Carolyn & William Ross, in 1860. The property would be christened “Rosslyn Farm.” Their newlywed nest didn’t last long. With the occupation of Arlington by Federal troops and disturbances of the Civil War, the couple had moved to France and officially sold the property to the Rosslyn Development Corporation in 1869.  (more…)

This regularly scheduled sponsored column is written by Eli Tucker, Arlington-based Realtor and Arlington resident. If you would like to work with Eli and his team in Northern Virginia and the greater D.C. Metro area, you can reach him directly at [email protected].

Buyers now have more negotiating power, more choices, and, lower interest rates. Whether you are a new or experienced homeowner, come learn about the market and how our team has positioned hundreds of buyers for success.

On Wednesday January 21, I’ll be hosting another Ask Eli Home Buyer Workshop with my business partner Jean Ropp and local Loan Officer, Matt Ropp, with Atlantic Coast Mortgage. Food and drinks will be provided!

The workshop is a free:

• How to use data and strategy to maximize your home purchase
• How to use market trends to your advantage
• The latest on interest rates and mortgage programs/products
• Common mistakes to avoid and some tips for success

Valuable information for all:

• From first-time to experienced buyers
• Buying soon or planning 12+ months out
• Buyers in Northern VA, DC, or Maryland Suburbs

Where and When?

• Wednesday Jan 21 from 6-7:30PM
• Arlington Central Library (1015 N Quincy St), Bluemont Room

Registration is now open and space is limited. Click the graphic below to RSVP. Bring your appetite and your home buying questions! I’d love to see you there. Feel free to email me at [email protected] with any questions about the event.

If you’d like to discuss buying, selling, investing, or renting, don’t hesitate to reach out to me at [email protected].

We have access to the most pre and off-market listings across the DMV of any brokerage and are happy to share what’s available with anybody who asks.

Below are some of our team’s pre/off-market listings, details and additional listings available by request:

• Glebewood – 4BR/2.5BA/1,800 sqft – Duplex (1953) – 20^th Pl N Arlington VA 22207
• Ballston – 1BR+den/1BA/900 sqft – Condo (2008) – 888 N Quincy St Arlington VA 22203
• Annandale – 4BR/3.2NA/2,500 sqft – Townhouse (2003) – Aspen Hill Ct Annandale VA 22003
• Highland Park/Overlee Knolls – 6BR/5.5BA/5,000+ sqft – Detached Single Family (2025) – 22^nd Rd N Arlington VA 22205
• Falls Church – 4BR/3BA/1,800 sqft – Detached Single Family (1946) – Tyler Ave Falls Church VA 22042
• Falls Church City – 4BR/4.5BA/3,000+ sqft – End-unit townhouse (1995) – Rees Pl Falls Church VA 22046
• Arlington Heights – 5BR/5.5BA/5,000 sqft – Detached Single Family (2026) – South Highland St Arlington VA 22204

Eli and his team believe that your real estate needs should be managed by advisors, not salespeople. Their mission is to guide, educate, and advocate for their clients through real advice, hands-on support, and personalized service.

This regularly scheduled sponsored column is written by Eli Tucker, Arlington-based Realtor and Arlington resident. If you would like to work with Eli and his team in Northern Virginia and the greater D.C. Metro area, you can reach him directly at [email protected].

Merry Christmas! The season of gratitude and reflection is upon us. In the past, I’ve shared what I’m most grateful for in Arlington, but I’d love to find out what WE are most grateful for, in the poll below.

If I missed something that you’re compelled to share, please add it to the comments!

For me, it’s the parks, trails, and recreation but specifically the trails that I am most grateful for. Followed by the diversity of food and walkability.

From (left to right) Tonya, Jean, Val, me, Carolanne, and Jake, the Eli Residential Group wishes you all a joyous and fulfilling holiday season!

If you’d like to discuss buying, selling, investing, or renting, don’t hesitate to reach out to me at [email protected].

We have access to the most pre and off-market listings across the DMV of any brokerage and are happy to share what’s available with anybody who asks.

Below are some of our team’s pre/off-market listings, details and additional listings available by request:

• Glebewood – 4BR/2.5BA/1,800 sqft – Duplex (1953) – 20^th Pl N Arlington VA 22207
• Ballston – 1BR+den/1BA/900 sqft – Condo (2008) – 888 N Quincy St Arlington VA 22203
• Annandale – 4BR/3.2NA/2,500 sqft – Townhouse (2003) – Aspen Hill Ct Annandale VA 22003
• Highland Park/Overlee Knolls – 6BR/5.5BA/5,000+ sqft – Detached Single Family (2025) – 22^nd Rd N Arlington VA 22205
• Falls Church – 4BR/3BA/1,800 sqft – Detached Single Family (1946) – Tyler Ave Falls Church VA 22042
• Falls Church City – 4BR/4.5BA/3,000+ sqft – End-unit townhouse (1995) – Rees Pl Falls Church VA 22046
• Arlington Heights – 5BR/5.5BA/5,000 sqft – Detached Single Family (2026) – South Highland St Arlington VA 22204

Eli and his team believe that your real estate needs should be managed by advisors, not salespeople. Their mission is to guide, educate, and advocate for their clients through real advice, hands-on support, and personalized service.

This regularly scheduled sponsored column is written by Eli Tucker, Arlington-based Realtor and Arlington resident. If you would like to work with Eli and his team in Northern Virginia and the greater D.C. Metro area, you can reach him directly at [email protected].

The Northern VA/DC Metro housing market bent, but did not break. Here are three defining trends and takeaways of 2025:

1. Supply levels increased faster in Northern VA/DC Metro than the overall Mid-Atlantic region, due to turmoil in DC area federal employment and spending
2. There was not a mass exodus from the Northern VA/DC Metro market, like some projected when DOGE came to town
3. Demand dropped slightly, but did not collapse at any point in the year

Here are the charts and data behind each statement…

Supply Levels Increase Faster in DC Area than Mid-Atlantic

By November 2025, housing supply levels are up 20% in the Mid-Atlantic region compared to 34% and 41.5% in the DC Metro and Northern VA regions, respectively. This rise in DC Area housing inventory levels relative to the larger region is attributed to the effects of DOGE/Trump cuts to federal employment and spending.

Key Stat: Active listings are up 33.7% year-over-year as of Dec 4 2025 in the DC Metro vs 19.7% in the Mid-Atlantic

There Was Not a Mass Exodus from DC Area Homes

When DOGE was announced in February 2025, there was an alarming number of (false) reports that it induced a mass exodus of homeowners from the Northern VA/DC Metro market. While new listings spiked in March (DOGE) and September/October (Government Shutdown), the ~20-25% and ~5-15% increases in new listings were a response to local turmoil, but far from a mass exodus.

Key Stat: New listings are up 6.8% year-over-year as of Dec 4 2025 in the DC Metro vs 4.4% in the Mid-Atlantic

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This regularly scheduled sponsored column is written by Carolanne Korolowicz, Arlington-based Realtor and Arlington resident. If you would like to work with Carolanne in Northern Virginia and the greater D.C. Metro area, you can reach him directly at [email protected].

This holiday season marks my first as a toddler mom. The concept of Santa and the significance of the celebrations are far beyond my son’s understanding, but the themes, images and magic are starting to click. Besides the constant supply of sugary treats, my son is mesmerized by the glow of a Christmas light.

As someone whose holidays have always been spent in Arlington, I wanted to relive my earliest memories of driving around sleepy neighborhood roads to see displays of holiday cheer. My husband and I packed up the kids, my brother joined too, to experience the nostalgia and see Christmas through a child’s eyes.

Of course, the first stop was 1713 N. Quebec Street, the famous “Christmas House”. For over 30+ years, the owner – who is considered an unofficial resident historian – has created a winter wonderland in the heart of Cherrydale. Built in 1898, the Dutch Colonial acts as the perfect backdrop for this temporary Santa’s Workshop.

 

My son was lifted up to overlook the vast array of vintage Santas, a life-size Thomas: The Train Engine, Garfield with his lasagna in tow, and a toy-shop window display. As I look out onto the scene I’ve admired for three decades (many years where I, too, had to be held up to get a decent view), the magic was less about the mythical characters, but the humans behind it. First, the logistics of pulling this off year after year are impressive. But mostly, I was taken aback by the dedication and gift these neighbors continue to give. (more…)

This regularly scheduled sponsored column is written by Eli Tucker, Arlington-based Realtor and Arlington resident. If you would like to work with Eli and his team in Northern Virginia and the greater D.C. Metro area, you can reach him directly at [email protected].

I recently read a surprisingly fun, interesting book on housing (de)regulation, Build, Baby, Build: The Science and Ethics of Housing Regulation (2024) by Bryan Caplan, an economics professor at our very own George Mason University. It’s a graphic novel, so you’re essentially reading an econ comic book rather than a dense policy text. It’s an easy, worthwhile read that I found relevant to our current Missing Middle housing/densification discussions and recommend it.

The book makes a clear, unapologetic case for radically loosening housing (and all building) regulations—height limits, density caps, parking minimums, etc. If you lean libertarian, you’ll be smiling the whole time. If you’re more skeptical of deregulation, you’ll at least walk away with a sharper understanding of why so many economists, planners, and “YIMBY” advocates keep calling to densify your neighborhood.

Overlaps With New ‘Abundance Liberalism’ Politics

Caplan’s arguments overlap a lot with ideas in another new, popular book, Abundance (2025) by Ezra Klein and Derek Thompson. They’re coming at housing deregulation from a more political viewpoint in what’s referred to as “abundance liberalism” or “supply-side progressivism”, but the core housing regulation message is similar:

• We don’t build enough homes where people want to live due to over-regulation, especially in blue, high-opportunity metro areas
• Well-intentioned regulation in zoning, environmental review, permitting, etc make the right construction too slow and too expensive
• If we want broadly available prosperity, we must make it easier and faster to build what the market wants in the places where people most want to live and work

As the Democratic Party searches for a stronger identity, many are grabbing onto the Abundance concepts and Build, Baby, Build is a good way of learning about the housing-specific ideas, although the book takes a more extreme viewpoint than you’ll likely heard from most Abundance-believers. You don’t have to agree with the authors, but if you want to understand where a lot of the pro-building, pro-density conversation is coming from, especially inside the Democratic Party, it’s a good education.

Housing Policy Changes Are Coming Locally, Regionally, Nationally

In late 2024, Freddie Mac estimated that the US is short about 3.7 million homes. The national/regional/local housing shortage is the primary driver of our affordability crisis (note: interest rates aren’t to blame, we are hovering around the 30-year average mortgage rate), which has become a frequent talking point amongst families and politicians.

Many ARLnow readers are familiar with Arlington’s “Missing Middle” policy, in which exclusively single-family zoning was eliminated in 2023 across the County to allow for 2-6 unit properties (and has since gotten stuck in a legal tug-of-war), but similar bans on exclusionary zoning and/or promotion of upzoning are happening elsewhere in the DMV including in Alexandria, Montgomery County, and Fairfax County.

These housing policy shifts are not just local to the DMV, they’re occurring in other localities, at the state level (e.g. California, Oregon, Washington) and at the national level by nudging/incentivizing localities away from exclusionary zoning and overregulation. Don’t be surprised to see the Trump Administration take this on in a more forceful way at some point in the next three years.

Whether or not you support these policy changes, I believe this is just the beginning of what will ultimately be a major shift in housing and building policy over the next 10-20 years. In Arlington, we may or may not end up with the current iteration of Missing Middle (personally, I’m hoping to see a better designed second version), but I’d bet my savings that housing policy in Arlington, our neighboring DMV communities, and many metro areas nationwide looks very different over the next two decades.

Your Neighborhood vs Their Growth

I find the “human nature” of the housing (de)regulation/zoning debate to be supremely interesting because self-interest (human nature) tends to override what would otherwise be agreeable politics. I believe most people who read Build, Baby, Build or the housing portion of Abundance will find political and social arguments they objectively agree with, but the readers who are comfortably living in a single-family (or low density) home in a relatively quiet neighborhood feel the threat to their sanctuary and oppose it on emotion.

That is not meant as a slight to readers/citizens who are emotionally opposed to trending housing politics (upzoning, abundance liberalism); it’s rooted in sound arguments and something deeply personal, which makes the housing debates so complex and difficult. Housing debates can cause a die-hard libertarian to picket against deregulation that is perfectly libertarian because of where they live and the home they own.

Give It a Read, Tell Me What You Think

Don’t get me wrong, Abundance is a great read, but it’s already very popular and it’s a longer read, so I’m recommending Build, Baby, Build because it’s lesser known, a much easier read (it probably took me 60-90 minutes), housing-focused, and it was written by a professor at our local University.

It’s worthwhile for anybody who feels strongly about housing policy, but particularly those who feel strongly opposed to policy like Missing Middle so you learn about the other side of your position. If you do read it, especially if you’re part of the latter group, I’d love to hear your thoughts (good or bad) at [email protected].

If you’d like to discuss buying, selling, investing, or renting, don’t hesitate to reach out to me at [email protected].

We have access to the most pre and off-market listings across the DMV of any brokerage and are happy to share what’s available with anybody who asks.

Below are some of our team’s pre/off-market listings, details and additional listings available by request:

• Glebewood – 3BR/2.5BA/1,800 sqft – Duplex (1953) – 20^th Pl N Arlington VA 22207
• Ballston – 1BR+den/1BA/900 sqft – Condo (2008) – 888 N Quincy St Arlington VA 22203
• Annandale – 4BR/3.2NA/2,500 sqft – Townhouse (2003) – Aspen Hill Ct Annandale VA 22003
• Highland Park/Overlee Knolls – 6BR/5.5BA/5,000+ sqft – Detached Single Family (2025) – 22^nd Rd N Arlington VA 22205
• Falls Church – 4BR/3BA/1,800 sqft – Detached Single Family (1946) – Tyler Ave Falls Church VA 22042
• Falls Church City – 4BR/4.5BA/3,000+ sqft – End-unit townhouse (1995) – Rees Pl Falls Church VA 22046
• Arlington Heights – 5BR/5.5BA/5,000 sqft – Detached Single Family (2026) – South Highland St Arlington VA 22204

Eli and his team believe that your real estate needs should be managed by advisors, not salespeople. Their mission is to guide, educate, and advocate for their clients through real advice, hands-on support, and personalized service.

This regularly scheduled sponsored column is written by Eli Tucker, Arlington-based Realtor and Arlington resident. If you would like to work with Eli and his team in Northern Virginia and the greater D.C. Metro area, you can reach him directly at [email protected].

Happy Thanksgiving week y’all, my favorite holiday of the year!

Eli Residential Group is a sponsor this year for the Arlington Turkey Trot, which will be the first time I’ve done anything other than clean, cook (drink), or play/watch football before a Thanksgiving meal and it inspired this year’s Thanksgiving poll!

We’ve learned a lot about ARLnow reader Thanksgiving preferences and habits through this annual poll, including:

• Readers are perfectly split in their preference for white or dark meat (291 votes each)!
• 76% of readers start their Thanksgiving meal before 5PM (648 votes to 200 votes)
• Thanksgiving pie preferences rank as 44% (474 votes) pumpkin, 29% apple (313 votes), and 26% pecan (282 votes). Interestingly enough, we handed out 183 pies from Acme Pie Co to clients last week and their choices we the exact opposite order with 44% pecan, 41% apple, and 15% pumpkin…hmmmmm

Whatever time you eat, whatever turkey meat you prefer, whichever pie you choose, and whether you race or sit on Thanksgiving morning…from ERG to you and your family, have a wonderful day and a great official start to your holidays!

Eli and his team believe that your real estate needs should be managed by advisors, not salespeople. Their mission is to guide, educate, and advocate for their clients through real advice, hands-on support, and personalized service.

This regularly scheduled sponsored column is written by Carolanne Korolowicz, Arlington-based Realtor and Arlington resident. If you would like to work with Eli and his team in Northern Virginia and the greater D.C. Metro area, you can reach him directly at [email protected].

I hate to admit it, but I was completely consumed by McDonald’s resurgence of Monopoly. For those who don’t frequent the drive-thru; diners collect Monopoly pieces (stickers) with purchases for a chance to win various prizes. Luckily, I got sick of Big Macs before I had to call 1-800-GAMBLER. Though the contest had me on the verge of a clogged artery or debt, it sparked the idea for this week’s article.

Monopoly has expanded from a tangible board to a virtual world with Monopoly GO!, but did you know that the game’s origin story of a “down-on-his-luck business man creating a board game to help his family during The Great Depression” was just a farce? The idea for the real estate empire pastime is actually credited to Lizzie Magie, an Arlingtonian.

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This regularly scheduled sponsored column is written by Eli Tucker, Arlington-based Realtor and Arlington resident. If you would like to work with Eli and his team in Northern Virginia and the greater D.C. Metro area, you can reach him directly at [email protected].

Today’s article marks a special milestone — TEN years of ‘Ask Eli’, every Tuesday on ARLnow.

Giveaway for Ten $50 Arlington Gift Cards

In the November spirit of reflection and gratitude, I’d like to celebrate ten years of Ask Eli with you and give ten $50 gift certificates to an Arlington business from my list of favorite Arlington establishments.

I’m asking readers to nominate somebody in the Arlington community who they are grateful for (teacher, neighbor, sibling, friend, etc) and feel is deserving of a special treat this holiday season. Nominate somebody using this form and I’ll be in touch with the winners by next week.

When I started this column in 2015:

• The average Arlington home sold for just over $646,000
• The median Arlington home was $575,000
• 24 homes (.8%) sold for $2M+ and 2,437 (87%) sold for under $1M
• I had never published an article and my only professional writing experience was writing proposal for Federal consulting jobs, via my former employer, Grant Thornton

Ten years later:

• The average Arlington home is nearly $941,000 (+46%)
• The median Arlington home is $775,000 (+35%)
• 145 homes have sold for $2M+ (7.5%) and 1,228 (63%) have sold for less than $1M
• I’ve moved four times all over Arlington from Rosslyn, to Johnsons Hill, to Bluemont, to Alcova Heights (where I’ll be for a long time!)
• I am the longest running columnist on ARLnow and written over 500 articles covering everything from local, regional, and national housing data, to housing policy (hello Missing Middle), to advice on inspection negotiations, homeowners insurance, and what time of year to buy/sell a home.

Through the years we’ve discovered ARLnow readers’ favorite Thanksgiving pie (44% Pumpkin), what time the Thanksgiving meal should start (76% before 5PM), and donated thousands to your favorite charities. Your comments keep me honest and informed and show me that I’m not shouting into the darkness, thank you.

Over that time, I’ve grown from a solo agent to leading the Eli Residential Group, a team of six that I love working with every day, with nearly 1,000 transactions under our belt, and 360+ transactions right here in Arlington.

I’m deeply grateful for this platform, ARLnow readers, and for the Arlington community that I call home.

Thank you for celebrating ten years with me! Here’s to ten more!

If you’d like to discuss buying, selling, investing, or renting, don’t hesitate to reach out to me at [email protected].

We have access to the most pre and off-market listings across the DMV of any brokerage and are happy to share what’s available with anybody who asks.

Below are some of our team’s pre/off-market listings, details and additional listings available by request:

• Highland Park/Overlee Knolls – 6BR/5.5BA/5,000+ sqft – Detached Single Family (2025) – 22^nd Rd N Arlington VA 22205
• Yorktown – 6BR/6.5BA/6,000+ sqft – Detached Single Family (2026) – N Greencastle St Arlington VA 22207
• Ballston – 4BR/3.5BA+office/4,000 sqft – Four Townhouses (2026/2027) – 11^th St N Arlington VA 22201
• Falls Church – 4BR/3BA/1,800 sqft – Detached Single Family (1946) – Tyler Ave Falls Church VA 22042
• Falls Church City – 4BR/4.5BA/3,000+ sqft – End-unit townhouse (1995) – Rees Pl Falls Church VA 22046
• Williamsburg – 6BR/5.5BA/5,500 sqft – Detached Single Family (2026) – 27^th St N Arlington VA 22207

Eli and his team believe that your real estate needs should be managed by advisors, not salespeople. Their mission is to guide, educate, and advocate for their clients through real advice, hands-on support, and personalized service.

This regularly scheduled sponsored column is written by Eli Tucker, Arlington-based Realtor and Arlington resident. If you would like to work with Eli and his team in Northern Virginia and the greater D.C. Metro area, you can reach him directly at [email protected].

Question: If somebody slips and gets hurt on the icy sidewalk outside of my home, will my homeowner’s insurance cover medical bills?

Answer: Winter introduces a slew of risks and hazards for homeowners, many of which can be managed through proper insurance coverage and planning (don’t forget to winterize your exterior plumbing!). I talked to my go-to insurance contact, Seth Kutner of ACO Insurance ([email protected]) about common winter claims and how they are handled by homeowners insurance.

Homeowners Insurance can cover most winter-related claims if the policy is set up properly. Considering the high cost of the average insurance claim, it’s important to know what is and isn’t covered.

Trip & fall lawsuits

Make sure to properly clear your sidewalk area of snow and ice because you may be liable for someone tripping and falling on the sidewalk outside of your house in hazardous conditions. The liability coverage on your homeowners insurance will cover this and Seth recommends that everyone have a minimum of $500,000 in liability coverage.

Burst pipes due to freezing

During the winter months, freezing pipes are a common issue that can lead to major problems. When the temperature drops, water inside your pipes can freeze, causing the pipes to expand and potentially burst. This can lead to significant water damage, expensive repairs, and the inconvenience of being without running water. To prevent freezing pipes, make sure to insulate any exposed pipes, especially those in unheated areas. If you do experience freezing pipes, it is important to call a plumber right away to help clear the pipe. In most cases, damage caused by a burst pipe from freezing is covered by insurance, a common exception is to a vacant home with the heat off.

Wind damage

Whether wind directly damages your home or causes a tree to fall on your home, most policies cover the resulting damage. The deductible that you pay for this type of claim may be different than your normal deductible. Depending on your policy, this could be 2-5 times larger than your normal deductible. Some insurance companies have raised these deductibles and unless you have read your declaration pages (not common), you may not be aware of the changes.

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This regularly scheduled sponsored column is written by Eli Tucker, Arlington-based Realtor and Arlington resident. If you would like to work with Eli and his team in Northern Virginia and the greater D.C. Metro area, you can reach him directly at [email protected].

Question: Do you have any information on the new townhouse development near the Crystal City Metro?

Answer: Over the weekend, EYA opened sales for a new townhouse development that will bring 42 3BR/2.5BA/2,000SF townhouses to National Landing (Crystal City/Pentagon City) and has put seven under contract in less than 48 hours. They are expected to be ready for move-in in 2026/2027.

The community will be called Highlands Row and is located at the corner of Fern and 18^th (South Hayes) replacing existing parking lots in the Crystal House complex, 1-2 blocks south of familiar landmarks like the Pentagon City Mall, Costco, and Amazon HQ2, and a block west of the Crystal City Metro.

First Townhomes in Crystal/Pentagon City

It will be the first true townhouse community within walking distance of the Crystal City and Pentagon City Metros, which is a shocking fact and highlights Arlington’s housing and zoning shortcomings.

The only other townhouse-like product in the area is a 1980 community of two-over-two condos that range from ~1,400-1,600SF and hardly function as a townhouse. The other townhouse communities in the 22202 zip code are in more residential neighborhoods, well outside of what most would consider walkable to Metro and the urban centers of National Landing.

Before returning to the main topic of this article, I want to reiterate how crazy it is that Arlington has not found a way to bring townhouses to the Crytal/Pentagon City Metro area until now, despite it being an area perfectly suited to that type of housing.

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This regularly scheduled sponsored column is written by Eli Tucker, Arlington-based Realtor and Arlington resident. If you would like to work with Eli and his team in Northern Virginia and the greater D.C. Metro area, you can reach him directly at [email protected].

Question: Do you think builders will be able to pass on the County’s higher permit costs on to buyers?

Answer: Arlington County recently increased the cost of residential housing permits, including the cost of building a new home or an addition. Builders I’ve spoken with expect their permit costs to roughly double — jumping from around $30,000–$40,000 to $60,000–$80,000 for all permits and significantly more when considering the permit/regulatory related work (e.g. stormwater facilities).

Who Bears the Burden of Higher Permit Costs?

That’s a big increase and it begs an important question: who ultimately pays for the higher fees?

The common answers I hear are:

• Builders will pass the cost along to deep-pocketed buyers and they will absorb the extra cost
• Builders will eat it and make less profit

I’d argue the real answer is that the sellers of the existing homes that will be torn down will ultimately shoulder most of the cost.

Buyers Won’t Pay More

We should assume that the market for new homes in Arlington is operating at or near peak efficiency, meaning buyers are paying as much as they are willing to for new homes and builders are maximizing their returns.

Higher permit costs don’t improve the home in any way that increases its value to a buyer so if buyers are already paying as much as they’re willing to for new homes, builders can’t simply add an extra $30,000-$40,000+ to the asking price and expect buyers to pay it. If they do, and our housing market is working efficiently, buyers will choose not to buy or will purchase a competing home instead.

Builders Won’t Absorb It

Margins on speculative new construction builds are already thin relative to the risk. Most builders don’t have the margins to absorb an extra $30,000–$40,000 in costs per project.

Before purchasing a tear down/lot to build a new home, builders prepare a budget, known as a pro forma, that includes cost projections and forecasted sale price of the future build. The pro forma tells a builder how much they can pay for the existing home/lot to maintain target profit margins – if (permit) costs increase and the future sale price does not, the pro forma tells the builder they must pay less to acquire the lot.

Builders Will Pay Less for Tear Downs/Lots

If we assume that the housing market is operating efficiently, which I believe we should, the logical conclusion is that higher permit costs will mostly be absorbed by homeowners of existing homes that builders will purchase to tear down because builders must offset the higher construction costs with a lower acquisition price. This is an unfortunate outcome for these homeowners, who are generally long-time Arlington residents who have already been burdened by rapidly increasing property taxes due to higher land values.

I think in the near-term (first 6-12 months of higher permit costs), builders will end up absorbing the higher costs because their pro formas haven’t been properly tuned yet to account for higher permit costs and they are acquiring lots based on older, lower costs. Once a builder has seen the higher costs flow through to their bottom line, the budget adjustments will be made accordingly.

Price point also matters. Builders can more easily absorb more of the permit costs on a project with a lot acquisition price of $1.2M-$1.5M and resale price of $3M-$4M than they can on a project with a lot acquisition price of $700k-$900k and a resale price of around $2M, so I expect different market responses at different price levels.

May Increase Supply of Entry-Level Homes

The high price builders are willing to pay for tear downs has led to fewer entry-level homes (smaller, older homes) in circulation for owner-occupied purchases because those homes are being purchased by builders and turned into large, multi-million dollar homes.

If my theory about higher permit costs is accurate and sellers of existing, entry-level homes get lower offers from builders, the difference in their net return by selling on the open market (available to owner-occupied purchasers) compared to selling to a builder may be high enough to push more entry-level homes into market circulation and away from builders. I think that many in Arlington would consider this a win.

Why the County Raised Fees

Arlington frames the higher fees as cost recovery for the services wrapped into permitting — plan review, inspections, zoning reviews, stormwater/land-disturbing reviews, utility connections, etc. The County also notes mandatory add-ons like a 2% state Code Academy levy and a 10% “automation enhancement” surcharge that sit on top of core fees. Arlington’s permit costs are among the highest in the region and significantly higher than Fairfax County permit costs.

If you’d like to discuss buying, selling, investing, or renting, don’t hesitate to reach out to me at [email protected].

We have access to the most pre and off-market listings across the DMV of any brokerage and are happy to share what’s available with anybody who asks.

Below are some of our team’s pre/off-market listings, details and additional listings available by request:

• Yorktown – 6BR/6.5BA/6,000+ sqft – Detached Single Family (2026) – N Greencastle St Arlington VA 22207
• Ballston – 4BR/3.5BA+office/4,000 sqft – Four Townhouses (2026/2027) – 11^th St N Arlington VA 22201
• Falls Church City – 4BR/4.5BA/3,000+ sqft – End-unit townhouse (1995) – Rees Pl Falls Church VA 22046
• Highland Park/Overlee Knolls – 6BR/5.5BA/5,000+ sqft – Detached Single Family (2025) – 22^nd Rd N Arlington VA 22205

Eli and his team believe that your real estate needs should be managed by advisors, not salespeople. Their mission is to guide, educate, and advocate for their clients through real advice, hands-on support, and personalized service.