Commercial growth continues; residential values dip slightly
ARLINGTON, Va. – January 15, 2008 – Arlington’s 2008 real estate assessments show an overall increase in value of 5.3 percent. This increase reflects a 12.3 percent increase in commercial property value and a slight dip in average assessments for single-family homes and condominiums.
The overall strength of Arlington’s property values, despite a slowdown in the regional and national economies, reflects the balance and diversity of the County’s real estate market, with its healthy mix of commercial and residential properties.
Budget impact
The final assessments will generate an additional $5.1 million in revenue compared to the estimates provided to the County Board in November. The additional revenue is shared with Arlington Public Schools under a revenue-sharing formula; the County’s share will be $2.7 million. In estimates provided to the County Board in November, the County Manager projected a $17.4 million gap in the County’s budget.
“The final assessments are very good news, confirming the stability of real estate in Arlington,” Said Ron Carlee, County Manager. “However, the overall gap between revenues and expenditures remains extremely challenging.”
Assessments for 2008 will be mailed on Wednesday, Jan. 16 to property owners. The 2008 Real Estate Assessments will be available on the County’s website at 5:00 p.m. on Tuesday, Jan. 15.
Apartment/rental unit value up 12.9 percent
The 12.3 percent increase in commercial property value includes a 12.9 percent increase in the value of apartments/rental units, and a 12.0 percent increase in office buildings, hotels, retail and other commercial property values.
Average assessment for single-family detached homes down 1.25 percent
Average assessments for all single-family homes decreased by 1.25 percent, with the average condominium assessment decreasing by 2.0 percent. Those decreases were offset by $465 million in new residential construction and apartment-to-condominium conversions. Overall, new construction added 1.5 percent to the County’s total commercial and residential tax base.
Low vacancy rates drove the increase in commercial value. The 12.9 percent increase in existing multi-family residential properties (rental apartment buildings) compared with a 25.6 percent increase in 2007. The 11.95 percent increase in 2008 for non-residential commercial property (hotels, retail and office buildings) compared with an 8.6 percent increase for 2007.
The change in values for single-family homes largely represents market adjustments over the past two years after six years of double-digit increases earlier in the decade. Approximately 11% of single-family homes increased in value from 2007 to 2008.
Arlington’s land use plan seeks to achieve close to a 50/50 balance in the property tax base between commercial and residential property. During the residential boom of the past 5 years, the balance became skewed at 60 percent residential and 40 percent commercial. With recent market corrections, the difference has now narrowed to 45 percent commercial and 55 percent residential. Based on the current trend, Arlington should continue its return to a 50/50 balance in its property tax base.
Arlington calculates property value annually
As set forth in the Virginia Constitution, real estate is assessed at 100 percent of fair market value. The County’s Department of Real Estate Assessments calculates property value annually using mass appraisal techniques that are standard in the real estate assessment industry. By law, neither the County Board nor the County Manager can change property assessments.
Assessment appeals
Homeowners who question whether their assessment is accurate should ask: “Would my home sell for the assessed value if I put it on the market?” If the answer is “yes,” the assessment is probably accurate. If the answer is “no,” contact the Department of Real Estate Assessments.
Deadlines for assessment appeals are March 3 for a Department of Real Estate Assessments review and April 15 for a Board of Equalization review. More information about the assessment review process is available online. Click on “Real Estate Assessments” under “Services.”
Tax payments due June and October
The notice of assessment is an appraisal of the fair market value of the property. It is not a bill. The real estate tax bill will be determined in the spring when the Arlington County Board sets the real estate tax rate. Property tax payments will be due in two installments on June 15 and October 5.
###
Arlington, Va., is a world-class urban community that was originally part of the “10-mile square” parcel of land surveyed in 1791 to be the Nation’s Capital. It is the geographically smallest self-governing county in the United States, occupying slightly less than 26 square miles. Known for its urban villages and transit-oriented development, Arlington maintains a rich variety of stable neighborhoods, quality schools and enlightened land use. In 2002, the county was the first recipient of the Environmental Protection Agency’s highest award for “Smart Growth.” Home to some of the most influential organizations in the world – including the Pentagon – Arlington stands out as one of America’s preeminent places to live, visit and do business.
