Alexandria Residential Assessment Values Continue To Rise In 2023

ALEXANDRIA, VA — Alexandria's residential real estate values continue to climb, according to 2023 assessment data presented to City Council Tuesday. Commercial values also increased, even some that experienced decreases in the previous tax year.

The city's overall tax base increased by 3.81 percent from 2022 to 2023. That's a smaller increase than the 6.24 percent increase last year, the highest increase in 16 years for the city.

Taxable property was assessed at $48.33 billion, an increase of $1.77 billion from $46.56 billion in 2021. Assessments are based on 100 percent of fair market value as of Jan. 1, 2023. According to a city staff presentation, $1.59 billion of the tax base increase can be attributed to appreciation, while $577.88 million was due to new growth.

Residential Tax Base

The residential property tax base increased 5.02 percent, compared to the 6.91 percent increase seen last year. The average single-family home assessed value increased 4.58 percent, while the average value for a residential condominium increased 3.48 percent.

In 2023, approximately 91 percent of single-family had value increases, 3 percent had decreases, and 6 percent were unchanged. For condominiums, approximately 69 percent had value increases, 3 percent had decreases, and 28 percent were unchanged.

According to the city, the average single-family home value is $940,375, up from $896,176 in 2022. The average condominium value is $407,616, up from $398,470 in 2022.

Single-family homes account for 42.25 percent of the tax base, while residential condominiums make up 17.52 percent of the tax base.

A map of 2023 property assessment changes by neighborhood shows percentage changes for single-family homes and condominiums. The highest changes for single-family homes were 7.9 percent in the King St Metro/Eisenhower Avenue area, 7.89 percent in Eisenhower East and 7.2 percent in Old Town. The lowest increases were 1.04 percent in the Southwest Quadrant, 2.18 percent in the Braddock Road Metro area and 2.55 percent in Northeast.

For condominiums, the highest changes were 5.93 percent in Potomac Yard/Potomac Greens, 5.72 percent in Old Town and 5.27 percent in Potomac West. The lowest increases were a 5 percent decrease in Fairlington/Bradlee, 0.56 percent decrease in Taylor Run/Duke Street and 0.12 percent increase in Northeast.

Commercial Tax Base

On the commercial side, the tax base increased by 1.97 percent. That's an increase of $355.5 million, from $18.07 billion to $18.43 billion.

Multifamily residential properties are included in the commercial tax base. In 2023, multifamily properties had a 6.19 percent increase in value. Commercial multifamily rentals make up 20.47 percent of the tax base.

The hospitality industry is making a recovery, as hotels increased in value by 9.81 percent. Last year, the hospitality sector had a 12.2 percent decrease.

Other commercial property types with value increases were shopping centers (1.19 percent), general commercial (3.45 percent) and warehouses (4.34 percent). However, office building values fell by 10.01 percent, which the city attributed to the COVID-19 pandemic and continued remote work impacting the office sector.

New Construction Joining the Tax Base

The city staff presentation to City Council highlighted completed projects or upcoming projects that will contribute to the tax base.

In Old Town and Old Town North, recently completed projects include the 286-unit The Alexan; 123-unit, 41-townhouse The Venue Condominiums with a theater; 54-unit 801 North Condominium; 73-unit The Muse Condominum; 13-unit The View on Washington Condominium; and 19-townhouse Abingdon Place Condominium.

Projects under construction include AKA Hotel, Holiday Inn Express, The Heron Hotel, 31-unit The Braystone Condominiums, 115-unit The Grayson, 133-unit The Aspire; 78-unit 805 N. Columbus Street project, and 94-unit Aidan. In Old Town North, upcoming office to residential conversations include 901 North Pitt Street with 233 units, restaurant, retail and arts uses; and Tidelock with 234 units with arts and restaurant uses. In addition, Montgomery Center at 312 Montgomery Street will be a full block multifamily development with ground floor retail and arts uses.

In the Potomac Yard and Oakville Triangle area, recently completed projects include The Landing with 166 units providing assisted living and memory care; 138-unit Dylan Condominium; and IDA Headquarters. Under construction projects are the Inova Oakville facility, Virginia Tech Innovation Campus and The Landing building 2 with 160 independent living units.

In Carlyle, 721 units were added with the Dylan and Reese communities at Carlyle Crossing. WMATA Headquarters is under construction, as well as the 443-unit Meridian 2250.

On the West End, the Landmark Mall redevelopment is taking shape with demolition largely complete. Blocks approved by City Council include the 390-unit The Brightly with retail on Block I; 337-unit Thrive with retail on Block K; and 390 units with a medical office and retail on Blocks E and G.

Recently completed projects in the West End are the 435-unit Park+Ford, 300-unit The Blake, and 212-unit Sinclaire on Seminary. Benchmark Senior Living with 89 assisted living units and 26 memory care apartments and four single family homes called Franklin Hills are under construction.

In Del Ray, four new townhouses called Darden Towns were completed.

What's Next for the Budget

Real estate values factor into the real estate tax property owners pay. The bill will also depend on the real estate tax rate City Council sets during its annual budget process.

"This is the first step in the rollout of the budget as we deal or accept the assessments that really lay out the lion's share of our revenues that the budget will be built on," said Mayor Justin Wilson at Tuesday's meeting. "And so this is usually the most decisive part of the process and determining kind of how the budget will be shaped."

City Manager James Parajon will present the fiscal year 2024 budget proposal to City Council on Feb. 28 from 7 p.m. to 9 p.m. followed by a public presentation on March 2. City Council is scheduled to adopt the budget on May 3.

For more information, visit www.alexandriava.gov/Budget.