[Archived] Alexandria Real Property Assessments Announced for 2006

City Press Release


	For Immediate Release	For More Information, Contact
	February 15, 2006 PIO# 044-06/rdo	Steven J. Mason, Public Information Officer, or Raynard Owens, Communications Officer, at 703.838.4300 Raynard Owens, Communications Officer, at 703.838.4300

ALEXANDRIA REAL PROPERTY ASSESSMENTS ANNOUNCED FOR 2006

The Alexandria City Council received a summary tonight (Feb. 14) of Alexandria’s 2006 Real Property Assessments. City residents will receive their individual assessment notices in the mail this week.

For CY 2006, the overall assessed value of real property, including both locally assessed real property and state assessed public service corporation properties, increased 20.4%. Approximately 10.5% of this $5.58 billion increase, or $584.5 million, is the result of new construction; the remaining 89.5%, or $4.99 billion, is the result of appreciation.

Residential real property represents 61.8% of the total real property tax base, while commercial property and the State Corporation Commission Properties represent the remaining 38.2%. The residential base as it relates to the total tax base continues to increase as the increase in residential assessments again outpaced commercial assessments. In 2000, the residential base accounted for 50.5% of the total tax base.

Changes in the Residential Real Property Tax Base

The overall value of the City’s residential real property tax base increased in CY 2006 by 21.8%. New residential construction accounted for $393.2 million of the $3.64 billion increase; appreciation accounted for the remaining $3.25 billion of the increase.

The average assessed value of an existing residential home (single family and condominium) increased 19.5% in 2006.

• The average assessed value for an existing single family home (single family detached and townhouses) as of Jan. 1, 2006, is $667,386, increasing 18.1% over last year’s assessed value. The 2005 increase was 18.6%.

• The average assessed value for an existing residential condominium as of Jan. 1, 2006, is $363,592, increasing 22.6% from last year. The 2005 increase was 28.8%.

Annual condominium assessment changes (increases or decreases) are more pronounced than single family homes. 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. The prior cycles reflected more drastic downturns which have yet to be seen in the current cycle, however, the last year seems to indicate a moderation to the sharp spikes which may well lead to a market of more moderate increases in the future. There are clear signs that the slow down in real estate appreciation has already begun.

Changes in the Commercial Real Property Tax Base

The overall value of the City’s commercial real property tax base increased in 2006 by 19.6%. New construction accounted for $191.2 million of the increase and appreciation accounted for $1.74 billion of the increase. Commercial properties increased 17.6% on average, with double digit increases for all commercial property classes. Hotels showed the largest increase with a 28.6% appreciation rate, followed by multi-family rental properties at a 22.4% appreciation rate. New construction for commercial property was down from $489.5 million to $191.2 million due to the majority of new construction at the PTO Headquarters being completed prior to January 2005.

More information about Alexandria Real Property Assessments 2006 proposed real estate tax rate outlined in the FY 2007 budget press release (including individual property assessments for 2006) is now posted on the City’s web site (www.alexandriava.gov).

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