Alexandria property values rise 2.57%, driven by strong residential market

Property owners in the City of Alexandria have been receiving 2024 Real Estate Assessment notices in the mail from the Office of Real Estate Assessments.

The assessment notices reveal a continued divergence between the residential and commercial real estate markets. The overall tax base increased by 2.57% year-over-year, marking the fourteenth consecutive year of net growth in the city’s assessed values.

Residential property values show strong growth, with an overall increase of 4.55%, while commercial properties continue to struggle with a 0.88% decrease. The office sector faces the steepest decline, dropping 10.28% from the previous year.

“The City’s residential market continued to rise despite variable mortgage interest rates,” states the assessment notice. “The available supply of housing for sale remained low.”

For 2025, 83% of residential properties increased in value, 1% decreased, and 34% remained unchanged. The average days on market for 2024 sales was slightly shorter than in the prior three years.

The average value of existing residential property, including single-family homes and condominiums, is now $729,925, representing a 4.45% increase from the average value of $698,794 in 2024.

Single-family homes saw their average assessment rise to $1,001,336, up 4.06% from $962,276 the previous year. Residential condominiums experienced an even larger increase, with the average assessment reaching $447,612, a 5.63% jump from $423,765 in 2024.

The commercial market continues to face challenges, with multi-family rental properties decreasing by 1.11%. The office sector remains particularly troubled, with typical vacancy rates at 18% and weak demand necessitating concessions to attract tenants.

Several older Class B and C office properties have plans to convert to residential uses, according to the assessment notice. The hospitality sector shows some improvement with increases in both average daily room rates and occupancy, though business travel recovery remains slow.

William Bryan Page, Real Estate Assessor for Alexandria, emphasizes the city’s commitment to fair assessments. “Our office is committed to providing fair and equitable assessments, as well as the best customer service possible,” Page states in the notice.

Property owners who believe their assessment is inaccurate have options for review. The deadline to request a departmental review is March 17, 2025, while appeals to the Board of Equalization must be filed by June 2, 2025.

“If you feel your property is assessed above or below its market value as of January 1, 2025, or that your assessment is not equitable with surrounding properties, or is otherwise erroneous, you may request that the Office of Real Estate Assessments review your assessment,” the notice explains.

The city strongly encourages property owners to file for a review before pursuing a formal appeal. “Often, differences can be resolved at the Review stage prior to filing a more formal Appeal with the Board of Equalization,” according to the notice.

The 2025 tax rate, which will apply to the January 1, 2025 assessed values, is scheduled to be set by City Council on April 30, 2025. The City Manager presented the Proposed Fiscal Year 2026 Operating Budget to City Council on February 25, 2025.