[Archived] Alexandria Real Property Assessments Announced for 2005

City Press Release


	City of Alexandria, Virginia Office of the City Manager Alexandria City Hall 301 King Street, Suite 3500 Alexandria, Virginia 22314-3211 www.alexandriava.gov Telephone: 703.838.4300 Fax : 703.838.6343

February 8, 2005
PIO 041-05/bg

Alexandria Real Property Assessments Announced for 2005

The Alexandria City Council received a preview tonight (Feb. 8) of Alexandria's 2005 Real Property Assessments. City residents will receive their individual assessment notices in the mail this week.

For calendar year 2005, the overall assessed value of real property, including both locally assessed real property and state assessed public service corporation properties increased 21.2%. Approximately 14.6% of this increase is the result of new construction (including $245 million related to the construction of the U.S. Patent and Trademark Office); the remaining 85.4% is the result of appreciation.

"This overall increase reflects the strength and health of the Alexandria economy, and the continued demand for both rental and owner-occupied housing in the City and other urban jurisdictions close to the District of Columbia," said Mayor William D. Euille. “The City Council recognizes the increased burden of the higher assessments on residents and will take this into consideration when reviewing next year’s budget and the real estate tax rate,” he said.

Residential real property represents 59.5% of the total real property tax base, while commercial property represents 37.7 % and the State Corporation Commission Properties represent the remaining 2.8%. The residential base as it relates to the total tax base is up slightly over 2003 and 2004 when residential property represented 57.7% and 58.1% respectively. This continues the trend which started in 2000, when the residential tax base represented 50.5% of the total City tax base.

Changes in the Residential Real Property Tax Base

The overall value of the City’s residential real property tax base increased in 2005 by 22.9%. New residential construction accounted for $206 million of the $3.03 billion increase; appreciation accounted for remaining $2.82 billion of the increase.

The average assessed value of an existing residential home (single family and condominium) increased 21.3% in 2005.

• The average assessed value for an existing single family home (single family detached and townhouses) as of Jan. 1, 2005, is $563,092, increasing 18.6% over last year’s assessed value.

• The average assessed value for an existing residential condominium as of Jan. 1, 2005, is $287,765, increasing 28.8% from last year.

• Notably this year, the average high rise condominium increased 32.6% from $209,829 to $278,296.

Historical charts depicting a 19-year history of the average assessed values, as well as annual percentage rate increases for single family homes and residential condominiums in the City, show a continuing rise in the residential market. Annual condominium assessment changes (increases or decreases) are more pronounced than that of single family homes over this 19-year period. Major increases in the value of condominiums in the last two real estate cycles (the late 1970s and late 1980s) also occurred just before the major appreciation upswing ended for all residential property. Whether or not this holds true for this real estate cycle is unknown given continued low but possibly rising mortgage interest rates, housing demand which has lagged supply, and the overall healthy and growing area economy.

The residential market has continued to show strength that is unprecedented, with the average assessed value of an existing residential home increasing 131% since CY 2000.

Changes in the Commercial Real Property Tax Base

The overall value of the City’s commercial real property tax base increased in 2005 by 20.4% in 2005. New construction accounted for $489.5 million of the increase and appreciation accounted for $1.26 billion of the increase. The PTO headquarters, which is nearly complete, added $245 million to the tax base in 2005. Commercial properties increased 14.7% on average, with double digit increases for all commercial property classes.

City Manager Jim Hartmann will present his proposed Fiscal Year 2006 budget and FY 2006 - 2011 Capital Improvement Program to the City Council on March 8. His proposed budget will include a proposed real estate tax rate.

More information about Alexandria Real Property Assessments for 2005 is posted on the City’s web site.