Assessment Values Increase For Most Alexandria Residential Properties In 2022

ALEXANDRIA, VA — Alexandria's residential tax base experienced the highest increase since 2006 while some types of commercial properties had overall decreases in 2022, according to a new report on real estate assessments. City Council will be briefed on real estate assessments for the 2022 calendar year at the next meeting on Tuesday, Feb. 8.

The city's overall tax base increased by 6.24 percent from 2021 to 2022. Taxable property was assessed at $46.6 billion, an increase of $2.73 billion from $43.8 billion in 2021. Assessments are based on 100 percent of fair market value as of Jan. 1, 2022.

In a tweet, Mayor Justin Wilson noted the 6.24 percent increase in the taxable property was the highest growth in 16 years. The mayor said a third of the growth could be attributed to new development, and the remainder can be attributed to appreciation of existing properties.

According to a city memo, taxable property increases in recent years were 2.82 percent in 2016, 2.07 percent in 2017, 2.34 percent in 2018, 2.71 percent in 2019, 4.15 percent in 2020, and 2.69 percent in 2021.

The residential property tax base increased 6.91 percent, which is the greatest residential increase since 2006, according to the city memo. For 2022 property assessments, about 82 percent of properties increased in value, 3 percent decreased and 15 percent were unchanged.

Single-family home values increased by an average 6.44 percent. The average assessed value is $896,176, up from $841,964 in 2021. Increases were recorded at 97 percent of single-family homes, while 1 percent decreased in value and 2 percent were unchanged.

Condominium values increased by an average 2.81 percent. The average assessed value is $398,470, up from $387,597 in 2021. Increases were seen at approximately 65 percent of condos, while 6 percent decreased in value and 29 percent were unchanged.

A map of 2022 property assessment changes by neighborhood shows percentage changes for single-family homes and condominiums. The highest change for single-family homes was 7.74 percent in North Ridge/Rosemont, followed by 7.52 percent in Potomac Yard/Potomac Greens and 7.24 percent in Old Town. For condominiums, North Old Town had the highest change (4.99 percent), followed by Potomac Yard/Potomac Greens (4.74 percent) and Fairlington/Bradlee (4.03 percent).

The commercial tax base increased in 2022 after experiencing a 1.96 percent decrease in 2021. The overall commercial property tax base increased by 5.34 percent, or from $17.16 billion in 2021 to $18.07 billion in 2022.

Value changes did vary by sector, however. Industrial and self-storage properties led the increases with 15.4 percent growth in taxable property, while multi-family rental properties had a 10.3 percent increase. On the other hand, the hospitality sector had a 12.2 percent decrease in taxable property, while the office sector's taxable property fell by 6.5 percent.

Wilson noted the impact of decreases in hotel property values.

"In 2019, there were 31 hotel properties in the City of Alexandria worth a total of $753 million," Wilson tweeted. "Today, those 31 hotel properties are assessed at a total of $464 million."

Residents' real estate tax bill will be determined by their 2022 property assessment and the real estate tax rate set by City Council. City Manager James Parajon will present the fiscal year 2023 budget proposal on Feb. 15. City Council is scheduled to adopt the budget and set the real estate tax rate on May 4.

More data on 2022 real estate assessments can be found in the Feb. 8 City Council agenda.