Arlington Real Estate Property Values See Modest Increase for 2022 – Official Website of Arlington County Virginia Government

Published January 14, 2022

Arlington’s total property tax base grew modestly from 2021 due to continued housing growth, while commercial values ​​remained relatively unchanged.

Measured growth in residential real estate values ​​has given the tax base a boost, but the county continues to face challenges in balancing the FY2023 budget due to the ongoing impact of the COVID-19 pandemic.

Overall, the total rated value of all residential and commercial properties in Arlington rose 3.4 percent from 2.4 percent in 2021. Overall, residential property values ​​rose 5.8 percent while commercial property values ​​rose 0.6 percent. Overall, the county’s new build contributed 1 percent to the total tax base growth of 3.4 percent.

“The rise in property values ​​this year shows the appeal of our Arlington community as our community continues to face challenges from the ongoing COVID-19 pandemic,” said County Manager Mark Schwartz.

Property tax makes up almost 60 percent of the district’s total income. The county’s property tax base is roughly equally divided between residential property (54%) and commercial property (46%).

The slight increase in commercial property valuations shows some growth in our business market and a recovery nearing pre-pandemic levels. After double-digit declines in 2021, hotel property values ​​rose 5.6 percent as occupancy and room rates gradually recover from the initial effects of the pandemic.

The value of residential properties also improved by 5.3 percent compared to the previous year. Almost half of the growth was due to new buildings, which reflect the continuing demand for residential construction.

The value of general commercial real estate (malls, retail stores, gas stations, commercial condominiums) has declined, reflecting the ongoing impact of the COVID-19 pandemic on retail stores and restaurants. The values ​​of office properties also fell due to rising vacancies and a change in the demand for office space.

The 5.8 percent increase in residential real estate values ​​increased the average single-family home from $ 724,400 to $ 762,700. For the CY 2022, around 73 percent of residential property owners recorded an increase in value, while the rest remained unchanged or fell. Residential properties include condominiums, townhouses, and single-family homes.

CONNECTED: Learn more about property valuation in Arlington

Notification of the ratings will be sent to property owners in Arlington starting January 14th. Review information will be available online on Friday, January 14th after 11pm.

MORE: See your property valuation for 2022

Treating the lingering effects of a pandemic

Almost two years after the COVID-19 pandemic, the county continues to feel the economic impact of the slow recovery in sales, meal and hotel taxes, as well as cost increases and additional costs associated with the pandemic. The pressure to spend on transportation, manpower, schools, investment in labor and many other services in the county will continue to be a challenge in balancing the budget for FY2023.

In October, the Arlington County Board directed Schwartz to develop the budget for fiscal year 2023 with several options including:

  • Recognition of the employees of the district with salary adjustments.
  • Ongoing focus on responding to COVID-19 to mitigate community health and safety needs and the impact on the wider economy.
  • Support long-term efficiency and improvement in service delivery.
  • Implementation of collective bargaining, recommendations from the Police Practices Group, and frameworks for racial justice, climate change and sustainability.
  • Keep dividing tax revenue with Arlington Public Schools at the percentage shown in the passed fiscal year 2022 (53% county / 47% schools).

Schwartz will present his budget to the district executive in February.

MORE: Learn more about the budget process for fiscal year 2023