ALEXANDRIA, VA — Alexandria’s residential tax base has seen the biggest increase since 2006, while some types of commercial properties have declined overall in 2022, according to a new real estate valuation report. City Council will be informed of property valuations for the 2022 calendar year at the next meeting on Tuesday, February 8.
The city’s overall tax base increased by 6.24% from 2021 to 2022. Taxable property was assessed at $46.6 billion, an increase of $2.73 billion from 43.8 billion in 2021. Valuations are based on 100% fair market value as of January 1, 2022. .
In a tweet, Mayor Justin Wilson noted that the 6.24% increase in taxable property was the biggest growth in 16 years. The mayor said a third of the growth could be attributed to new developments, and the rest can be attributed to the appreciation of existing properties.
According to a city memo, increases in taxable properties over the past few years were 2.82% in 2016, 2.07% in 2017, 2.34% in 2018, 2.71% in 2019, 4 .15% in 2020 and 2.69% in 2021.
The residential property tax base increased 6.91%, the largest residential increase since 2006, according to the city memo. For 2022 property assessments, approximately 82% of properties increased in value, 3% decreased and 15% remained unchanged.
The value of single-family homes increased by an average of 6.44%. The average assessed value is $896,176, up from $841,964 in 2021. Increases were recorded in 97% of single-family homes, while 1% decreased in value and 2% remained unchanged.
The value of condominiums increased by an average of 2.81%. The average assessed value is $398,470, up from $387,597 in 2021. Increases were seen in about 65% of condos, while 6% decreased in value and 29% remained unchanged.
A card 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% in North Ridge/Rosemont, followed by 7.52% in Potomac Yard/Potomac Greens and 7.24% in Old Town. For condominiums, North Old Town recorded the highest change (4.99%), followed by Potomac Yard/Potomac Greens (4.74%) and Fairlington/Bradlee (4.03%).
The commercial property tax base increased in 2022 after declining by 1.96% in 2021. The overall commercial property tax base increased by 5.34%, or $17.16 billion. dollars in 2021 to $18.07 billion in 2022.
Changes in value, however, varied by sector. Industrial and self-storage properties led the increases with a 15.4% growth in taxable properties, while multi-family rental properties saw a 10.3% increase. In contrast, the hospitality sector saw a 12.2% decline in taxable property, while taxable property in the office sector fell 6.5%.
Wilson noted the impact of declining hotel property values.
“In 2019, there were 31 hotel properties in the city of Alexandria with a total value of $753 million,” Wilson tweeted. “Today, these 31 hotel properties are valued at a total of $464 million.”
Residents’ property tax bill will be determined by their 2022 property tax assessment and the property tax rate set by City Council. City Manager James Parajon to present fiscal year 2023 budget proposal on February 15. The city council is due to adopt the budget and set the property tax rate on May 4.
Following real estate valuation data 2022 are in the agenda of the municipal council of February 8.