Alexandria Tax Base Sees Minimal Increase In 2024

ALEXANDRIA, VA — Alexandria's tax base saw a minimal increase in 2024 as residential properties overall increased in value and the commercial tax base decreased, according to real estate assessment data to be presented to City Council Tuesday.

The annual real estate assessment data factors into future real estate tax bills along with the tax rate set by City Council during the budget process. According to a city staff presentation to City Council, the residential tax base increased by 2.98 percent, the commercial tax base fell by 4 percent and the non-locally assessed tax base increased by 3.45 percent. Overall, the city's tax base increased by 0.33 percent.

Residential and Commercial Trends

The 2.98 percent increase in the residential tax base was less than the 3.81 percent increase last year. Most of the tax base increase — $522.1 million — was due to new residential growth. The rest of the increase is $50.6 million due to appreciation of existing properties.

The average single-family home value is $962,276, up 2.33 percent from 2023. Condominiums average $423,765, an increase of 3.96 percent from 2023. Mayor Justin Wilson shared on social media that 50 percent of single-family homes increased in value, 45 percent had no change and 5 percent decreased. For condos, 74 percent increased, 24 percent did not change and 5 percent decreased.

A map of 2024 property assessment changes by neighborhood shows where the highest increases were for single-family homes and condominiums. The neighborhoods with the highest single-family increases in average property values were Landmark/Van Dorn (4.09 percent), Old Town (3.7 percent), Seminary Hill/Strawberry Hill (3.26 percent), Potomac Yard/Potomac Greens (2.53 percent) and Old Town North (2.51 percent). Neighborhoods with the highest condo increases were Landmark/Van Dorn (8.39 percent), Northeast (5.5 percent), Taylor Run/Duke Street (5.36 percent), Fairlington/Bradlee (5 percent) and Alexandria West (4.88 percent).

Meanwhile, commercial property values overall fell by 4 percent. The steepest decline was 12.38 percent for office buildings, while general commercial fell by 2.12 percent and multifamily fell by 2.26 percent. On the other hand, hotel values are up by 4.32 percent and shopping centers by 3.04 percent.

Residential properties make up the majority of the tax base in Alexandria. Single-family homes account for 43.25 percent of the tax base, commercial multifamily rentals make up 19.94 percent, residential condominiums make up 18.25 percent, and commercial, office, retail and services account for 15.98 percent.

New Additions to the Tax Base

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

In Old Town and Old Town North, completed projects include 119 multifamily units at The Grayson (1245 N Fayette/1200 N Henry Streets), 31 units and ground-floor retail at The Braystone Condominiums (1300-1312 King Street) and Hotel AKA Alexandria's renovation (625 First Street). Projects under construction are the 94-unit Aidan Condominium (701 N Henry Street), Holiday Inn Express (808 N Washington Street), 133 independent living units at Alate Old Town (1112 First Street), phase one with 598 multifamily units at The Heritage, The Heron Hotel (699 Prince Street), S. Union St Towns (101 Duke Street), 234 multifamily units with an arts use and restaurant at Tidelock- Transpotomac Plaza 331 multifamily units with ground-floor retail and arts use at Montgomery Center (312 Montgomery Street), 210 multifamily units with ground-floor retail at 1101 King Street, 233 multifamily units with ground-floor retail, restaurant and arts use at 901 North Pitt Street, 136 residential units at 1201 E Abingdon Drive, 50 residential units at 301 N Fairfax Street, 24 residential units and retail at The Mansly (615-621 King Street), 12 residential units and ground-floor retail at 720 N St Asaph Street, conversion to the Linder Academy at 112 N Washington Street, 14 townhouses at 820 Gibbon Street, and 12 residential units at 1225 King Street.

In Potomac Yard and Oakville Triangle, 400 Swann Avenue (Block A1) is getting 325 multifamily units and 2601 Oakville Street (Block B) is getting 247 multifamily units. Other projects under construction are INOVA Oakville (Block A2), 85 townhouses at Del Ray Corner at Oakville (Block D), Virginia Tech Innovation Campus (3650 University Drive), future townhouses and a park on Block C1/C2 and The Landing's second building with 160 independent living units (2700 Main Line Boulevard).

In Eisenhower East and Carlyle, one recently completed project is the Washington Metropolitan Area Transit Authority headquarters. A project under construction is 443 residential units at Meridian 2250 (2250 Dock Lane).

In Landmark/Van Dorn & Eisenhower West, the Landmark Mall redevelopment called West End is underway. Site plan work is in the process on the 52-acre site with plans for a mixed-use development offering a relocated Inova Alexandria Hospital, 2,500 residential units with affordable housing, office, commercial, fire station, and public open space. The Brightly (Block I) will offer 390 residential units and retail, Thrive (Block K) will have 337 units and retail, and Landmark Block E&G will have 390 residential units, medical office and retail.

Other projects under construction in Landmark/Van Dorn & Eisenhower West are the 64 and 75-unit townhouses at The Hensley & The Cameron at Eisenhower Pointe and Benchmark Senior Living with 89 assisted living units and 26 memory care units at 3440 Berkeley Street.

In Del Ray and central Alexandria, the Lindsay Volvo project at 1700 Kenwood Avenue is recently completed. Projects under construction are four new single-family homes at Franklin Hills (Karig Place) and Lindsay Lexus (1525 Kenwood Avenue).

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.

City Manager James Parajon will present the fiscal year 2025 budget proposal to City Council on Feb. 27. City Council is scheduled to adopt the budget and tax rate on May 1.

Residents who believe their real estate assessment is not accurate is can request a review with the Office of Real Estate Assessments by March 15 and appeal with the Board of Equalization by June 3. The deadline to submit an elderly and disabled tax relief application is April 15.