Arlington, Virginia is attracting more and more residents. While the city’s population dipped a bit during the height of the pandemic, its upwards climb continues, and it’s easy to understand why. Arlington is one of the most exciting and dynamic places to live in the United States. This is a city that’s just outside of the nation’s capital and everything Washington, D.C. has to offer. It’s easy to reach via public transportation.
But it’s not just Arlington’s proximity to DC that makes it so desirable. With a vibrant economy, rich cultural scene, and diverse demographics, tenants and home buyers are flocking here from all over the world. It has become a booming real estate market.
If you're a property owner in Arlington, or if you’re hoping to become a property owner, then you need to be aware of the unique challenges and opportunities that come with
owning real estate in this area. We are
local Arlington property managers, and we spend a lot of time working with people from outside of Arlington who want to buy, rent, or invest here. Let’s take a deep dive into the intricacies of Arlington's real estate market and provide you with some valuable tips and insights that will help you navigate it like a pro.
Location Matters - Know Your Neighborhoods
Arlington is divided into several distinct neighborhoods, each with its own unique character and charm. Each of these neighborhoods attracts its own residents as well. Choosing a place to live or buy will depend on your goals, your budget, and your lifestyle. Do you need a good school district? Is it important to be close to parks and green spaces? Do you want to be near a metro station? All of these are important factors before you buy, rent, or invest.
So start by researching Arlington’s neighborhoods a bit. Get to know the communities here. Before you invest in any property, it's essential to know the neighborhood well. The closer you are to the commercial center or metro stations, the higher the property value will be. A neighborhood's amenities, such as schools, shopping centers, parks, and restaurants, can greatly influence the desirability and value of the properties there. By understanding the nuances of each neighborhood, you can make informed decisions about which properties to invest in and when to make your move.
Pricing in the Arlington Real Estate Market
Home prices are pretty high in Arlington. If you want to enter this real estate market, be prepared to pay those high prices. According to Zillow, the median Arlington home value is $752,238, and this is more than three percent higher than the median value a year ago.
We don’t recommend you count on Zillow for all of your real estate data if you’re planning to buy here. Instead, work with an Arlington property manager who can give you real time data and analytics about where the market is, what the prices are doing, and how long it’s taking for a home to sell in the current market. You’ll also want to know what the competing properties look like and what the trends currently are when it comes to buying and renting properties. We can tell you, for example, that
eco-friendly updates are going a long way and a lot of buyers and
renters are looking for smart home technology features.
Inflation, Interest Rates, and the Arlington Real Estate Market
The real estate market has been a wild place for the last few years. For a while, as you likely remember, as the economy recovered from the pandemic, everyone in Arlington seemed eager to sell their homes. There were plenty of buyers happy to snap them up, even over asking price.
The good news is, there’s still a huge demand in the sales market. Investors or homeowners who want to sell their homes can do so successfully, even still. There are plenty of buyers and as we have already discussed, prices are still high.
Interest rates have risen quite a bit over the last year, however. And that has made mortgages more expensive. A lot of home buyers in Arlington are willing to absorb that cost. Some, however, are now forced to delay their plans to buy a home. There is some hesitation among certain demographics of buyers. So, they continue to rent. Or, if they’re new to Arlington, it makes sense for them to rent before they buy.
This has an impact on the rental market, and it’s a positive impact. Investors and landlords who have property to rent out are in a very strong position. It means vacancy rates are low, and rental values are high. We will continue to have a strong pool of renters in Arlington, especially as a number of existing and future tenants decide against buying until it becomes more affordable and accessible.
It may seem like rental values cannot possibly get any higher, but those rents are higher, and we know that there is a large pool of well-qualified tenants who are willing to pay them. Whether you’re renting out a home for the first time or negotiating a lease renewal with a rental increase, you’ll earn more than you’ve earned in the last few years.
Consider the Arlington Rental Market
Everything we’ve just shared about the interest rates and inflation and their impact on the real estate market and the rental market in Arlington should point you in the direction of investing in rental properties if you’re not already doing so.
The rental market in Arlington is robust, with high levels of demand from both permanent residents and transient workers who stay for a few months or even a few years. As a property owner, you may find yourself deciding what to do with an asset that you’re not living in yourself; do you want to rent it out or sell it?
When you rent a property, you have a steady stream of
rental income in the short term, and an asset that’s increasing in value while your tenants pay down any mortgage you may have on that home. This can be a huge benefit, and far more lucrative than the one-time earnings you’ll enjoy if you sell your home. Keep track of the rental market trends to make the right decision, and you’ll quickly see the benefits that exist, especially now, for rental property owners.
Surround Yourself with Professionals
Whether you’re buying, selling, investing, or not sure what you want to do when you own property in Arlington, make sure you’re not trying to navigate this complicated and ever-changing real estate market yourself. Instead, you want to work with local and experienced Realtors and property managers.
Finding the best properties in Arlington is not easy.
To learn about the properties and the neighborhoods, you need a local Realtor who knows the market inside out. A local Realtor understands the different nuances that can greatly affect the price and neighborhood desirability. They can help you understand your investment goals and devise a strategy that works best for you. They will negotiate the best price for you and ensure that all the paperwork and documentation are completed at the right time.
Even more important is your property management partner, especially if you decide to rent out a property that you already own or if you’re looking to invest in a property with a plan to rent it out to tenants. Property managers can advise you on:
- How much a particular property would be worth on the rental market.
- Any upgrades or improvements that may be necessary before you list the home.
- What kind of maintenance budget you’d need going forward.
- What types of tenants you’d be most likely to attract based on your property’s size, location, layout, and amenities.
Property owners also need a good network of vendors, contractors, and service providers who can help them have a good experience if they decide to rent out their home. Again - your
property manager can help with these relationships.
Focus on Property Maintenance in Arlington Homes
