Alexandria home values cross $1 million average as city mails assessment notices

The average Alexandria single-family home is now assessed at $1,045,750, the city announced Tuesday — the second consecutive year the figure has topped $1 million — as the city mailed its calendar year 2026 real property assessment notices and opened the review and appeal process.

Overall taxable assessments rose 3.41% from 2025, adding nearly $1.7 billion to the city's tax base and bringing total assessed value to $51.4 billion. Residential properties drove 82% of the increase.

"Our residential tax base has not declined since 2010," said Annwyn B. Milnes, Appraiser Supervisor in the city's Office of Real Estate Assessments, presenting the data to City Council Tuesday night. "It's increasing on average more than 3.5% each year."

The single-family average rose 4.44% from $1,001,336 last year. The average condominium assessment rose 2.81% to $460,185. Across all residential property types, the average assessed value is now $757,706 — up 3.81% from 2025. The median residential assessed value is $680,406.

Sixty-three percent of residential properties will see an assessment increase this year, 29% will remain unchanged and 8% will see a decrease, Milnes said. The 8% figure is within the normal range, she added, and does not indicate a widespread problem.

Finance Director Kevin C. Greenlief noted before the presentation that the city's assessments are conducted independently of budget needs. "The budget needs of a locality do not drive the assessment process," he said. "We establish values independent of the budget."

Commercial sector rebounds

Commercial properties posted a 1.91% increase — the first positive year since calendar year 2023, following a 0.88% decline in 2024 and a 4% decline the year before.

Shopping centers led the commercial rebound with a 14.44% increase as properties that had carried significant vacancies in recent years leased up available space. Hotels rose 9.10%, though their total assessed value of approximately $697 million remains well below the pre-pandemic figure of $881 million. Office buildings declined 3.40%.

"Shopping centers this year saw a large increase as many of the properties had big vacancies over the last many years and they were able to lease up the spaces," Milnes said. "We would probably be unlikely to see an increase like this next cycle because we're not gaining additional shopping center space that needs to be leased up."

Multifamily rental properties — classified as commercial despite being residential in use — make up the majority of the commercial tax base at $9.65 billion and saw a slight increase after two years of decline, driven largely by new high-rise construction.

Greenlief flagged one caution on the outlook. Recent signals of a slowing market — including declining consumption taxes — may not yet be reflected in current assessments because of the one-year lag in the appraisal process. "We wouldn't necessarily expect to see this kind of a surge continuing," he said.

How Alexandria compares

Alexandria's 4.40% residential assessment increase is in line with neighboring jurisdictions, though local home values remain below regional peers. Arlington County saw a 3.2% residential increase with an average assessed value of $882,900; Fairfax County saw a 4.31% increase with an average of $828,895, compared to Alexandria's $757,706 overall residential average. Arlington saw a 1.5% decrease in commercial assessments while Fairfax posted a 1.84% increase.

Greenlief also flagged one caution on the outlook. Recent signals of a slowing market — including declining consumption taxes — may not yet be reflected in current assessments because of the one-year lag in the appraisal process. "We wouldn't necessarily expect to see this kind of a surge continuing," he said.

New construction adds $456 million

New construction contributed $456.36 million to the tax base — 25% more than the prior year, though still about 70% of the three-year average from 2022 through 2024 — with residential growth accounting for $302.29 million and multifamily rental accounting for $61.58 million.

Notable completed projects include the Aidan Condominium, River Row, and Brooks Estate townhouses in Old Town and Old Town North. Active projects still under construction include the TideLock development, CityHouse, Whitley Phase 2, Waterman Place, and The Mansly.

Looking ahead, Milnes highlighted significant development still coming in Potomac Yard — where recent rezoning approvals have already raised the value of vacant land — and around the former Landmark Mall site, now anchored by the planned West End Alexandria mixed-use development and the future Inova hospital campus. Closer to the city center, Housing Alexandria's Sansé and Naja affordable housing project is nearing completion.

A tax base that has grown steadily for 15 years

The city's residential tax base has not declined since 2010, when it stood at $18.20 billion. It now stands at $32.85 billion — an increase of more than 80% over 15 years. Multifamily rental, which stood at $4.11 billion in 2010, has grown to $9.65 billion. Commercial property without multifamily has grown more modestly, from $8.62 billion to $8.22 billion, reflecting the ongoing challenges in the office sector.

What homeowners should know

Assessment notices began mailing on Wednesday and are available online now at realestate.alexandriava.gov. Property owners have two opportunities to contest their assessment.

The first is a review, with a deadline of March 16. Owners can submit the form online, by mail or by requesting a paper copy from the city. If unsatisfied after a review, or if the review deadline is missed, owners can file an appeal with the Board of Equalization — an independent body of fellow property owners with real estate expertise. The appeal form and supporting documentation are due June 1, with hearings scheduled after that date. Any changes from a review or appeal are effective Jan. 1.

Elderly and disabled residents have until April 15 to apply for tax relief through the city's Finance Department. Greenlief noted the city works flexibly with applicants who need extensions on a case-by-case basis. The Real Estate Division can be reached at 703-746-4646.

The real estate tax rate will be set by the City Council on April 29. City Manager James Parajon has proposed holding the rate steady at $1.135 per $100 of assessed value — meaning most homeowners will pay more due to rising assessed values rather than a rate increase. The average single-family homeowner faces a $504 annual increase at the current rate; the average condo owner faces a $143 increase.