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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.

This recurring Real Estate feature is sponsored by The Eli Residential Team. Their mission is to guide, educate, and advocate for their clients through real advice, hands-on support, and personalized service. This week’s post is written by Carolanne Korolowicz.

In Arlington, the contention between urban development and environmental preservation is ever present. Citizens went to bat to save Arlington’s tree canopy during the Missing Middle debacle, there are environment-focus ballot measures almost every election, and plenty of local associations with a mission to preserve the county’s green landscape. But, did you know that debating over trees is actually an Arlington tradition? Before boundaries were even drawn, trees have been at the center of almost every development project.

On October 21, 1767, the stage was set by John Carlyle and Charles Alexander. The two prominent figures went to trial to dispute whose land (modern day Arlington and Alexandria City) was whose. Twenty-four witnesses gave their testimonies about the land boundaries defined by tree markers. Many of these witnesses were quoted mentioning the trees’ ages, whether they had been marked as line or corner trees, and the type of instrument used. With tree-defined boundary lines, the testimonies became a source of confusion rather than clarity.

In other historical accounts, it is clear that the DC-area forefathers viewed trees as part of the area’s heritage. A friend of Thomas Jefferson wrote, “Nothing affected Mr. Jefferson like this wanton destruction of the fine trees scattered over the (Federal) City grounds.” The friend also stated that Jefferson himself once said, “The unnecessary felling of a tree, perhaps the growth of centuries, seems to me a crime little short of murder.” As obvious by these statements, the conservation cause has always been one of great passion.

The acknowledgement of prominent trees has been documented over the centuries. George Washington’s survey oak in Glencarlyn being one of the first. Later in 1860, a large, anciently marked poplar tree was noted to be a landmark for the Cherrydale Neighborhood, but was cut down for the Washington and Old Dominion Railway in 1912. George Nicholas Saegmuller, an original owner of “Reserve Hill”– today’s Knights of Columbus Arlington Headquarters– planted a strip of evergreen forest from LIttle Falls Road to Old Dominion Drive as a homage to his homeland of Germany. Most importantly, the first tree to be given protection was one of the oldest oak trees of the Nation at the Grunwell Estate, located in Country Club Hills, in the late 19th century.

Citizens acting as stewards of wildlife are deeply rooted in the makeup of Arlington. This symbiotic relationship remains today through the Forest and Natural Resources Commission’s Notable Tree Nominations. Since 1987, the volunteer-led program has awarded over 400 significant trees and their caregivers. In 2024, eleven trees were selected, including four on Fort CF Smith, six in North Arlington and one located on the corner of Columbia Pike and George Mason Drive. Though not legally protected, the status has proved helpful when communicating the importance of conservation during development projects.

What makes for a notable tree? The committee looks for these three items: size, neighborhood value, and uniqueness. Nominations are due every year on October 31st – so it’s not too late to submit! For legal protection, an application must be submitted for a ‘Specimen Tree’ through the Trees and Shrubs Ordinance. This designation requires tree conservation and protection if development of a site occurs. Violations result in a civil penalty of up to $2,500. Applications are due September 30th every year.

As headbutting between developers and “tree-huggers” continues on, Arlington County has made efforts in favor of the area’s ecosystem over the decades. The citizens hold the power to improve these protections. Nominating trees for significance, or legal protection, is the easiest way to make a difference.

To quote the late local historian Eleanor Lee Templeman, “Although Arlington County has already lost a great deal of its forests through careless development of subdivisions, an awakened public concern over this priceless heritage will save a great deal of remaining beauty. Our stream valleys and palisades still possess true wilderness areas which must be preserved for posterity.” (Arlington Heritage: Vignettes of a Virginia County, 1959)

This recurring Real Estate feature is sponsored by The Eli Residential Team. Their mission is to guide, educate, and advocate for their clients through real advice, hands-on support, and personalized service. This week’s post is written by Val Connolly

When it comes to buying in Arlington, the options are exciting, and a little overwhelming! Do you picture yourself in a fully updated home, where modern kitchens, bathrooms, fixtures, and even new construction mean you can move in tomorrow with zero hassle? Or does a home with great potential catch your eye, where a fresh coat of paint, a new kitchen, updated flooring, or a few new fixtures lets you put your own stamp on the space while living in it?

Of course, each option comes with different costs. Move-in ready or newly built homes often carry a higher price tag upfront, but they save you time, effort, and renovation expenses later. Homes that need a little TLC may require more work (and patience), but they can be more affordable initially and offer opportunities to build equity through your updates.

From a realtor’s perspective, it’s all about balancing convenience, cost, and long-term value. Updated or new homes give you immediate comfort and less planning, while homes that need minor updates allow you to personalize, increase equity over time, and make your dream home truly yours.

Arlington’s neighborhoods offer the perfect mix of classic charm and modern upgrades, so whichever route you choose, you’re investing in a beautiful, vibrant community.

Which one would you go for—move-in ready or a home you can shape along the way?
Here are some active listings to explore both options!

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THIS: Fully Updated & Ready to Move In (more…)