Arlington, Virginia Real Estate Assessments Set to Increase 2.5% in 2024

On January 12, 2024, the county of Arlington in Virginia released its calendar year 2024 proposed real property assessments for both commercial and residential property owners. The proposed 2024 values represent a 2.5% increase year over year, which is a slightly lower growth rate compared to the 3.7% in 2023. The majority of the tax base increase stems from new construction across the county as well as continued residential growth.

The percentage breakdown of property values increased over 2023 at a growth rate of 3.2% for residential and 1.6% for commercial. The existing office inventory experienced the sharpest decline in assessed value, decreasing 11% to reflect the staggering weaknesses in the office market. Commercial property values in all other industries (non-office commercial properties) also collectively decreased this year by 2.4%. In contrast, benefitting the most from new construction, the apartment sector values increased by nearly 9.5%. Hospitality values crept up 1.7%.

The county will be met with tough decisions when developing the fiscal year 2025 budget this year; the deteriorating office market in Arlington has been adversely impacting revenues, while expense totals continue to climb. This could result in the first increase to the base real estate tax rate since 2019, making an assessment review and appeal even more important. The county manager will present the proposed budget to the board in February, with the tax rate not being finalized until the end of April.

2024 assessment notices were mailed to property owners on January 12, 2024. The subject matter experts at Ryan are exploring creative strategies to assist our clients and minimize tax liability. We urge you to reach out to our local team members to prepare for the appeal deadline of April 15.