Loudoun home values showed “unprecedented” increases in sales prices last year, according to Commissioner of the Revenue Robert S. Wertz.
Residential real estate values climbed anywhere from 14% to 16% last year, while new construction remained largely stalled by comparison. The fastest growth in values was in single-family homes served by public water and sewer, which climbed by 16.12%.
Of the $17.5 billion, 18.3% increase in the value of the county’s real estate, $15.3 billion is from increasing property values. Only $1.7 billion is attributable to new construction, which increases the value of the real estate where it stands.
This is also the year when the total real property value in Loudoun crossed a hundred billion dollars, growing to $113 billion.
Last year, the county’s total taxable real estate was valued at $95.1 billion, an overall increase of 5.8%. The typical existing single family detached home property saw the largest average year-over-year increase in value, at 7.2%, and the average townhome was up 6.4%.
Data centers also continue to play an outsized role in the county government’s tax revenues; they account for almost half the value of all commercial real estate in Loudoun. Data center real estate is valued at about $11.8 billion in Loudoun, of a total $27.7 billion of commercial real estate. The growth in that land’s value also continues to far outpace other categories of commercial real estate, posting a 53.8% growth in assessments over the past year compared to a 23.8% growth overall.
That also means as supervisors begin their next annual budget deliberations, more of the tax burden could fall on homeowners. In Loudoun, typically much of the increase in the county’s expenses, such as due to price inflation and growing the county’s services to serve a growing population, is offset by the increase in the total value of real estate in the county due to new construction. With new construction slower during the pandemic, most of the growth in the county’s real estate portfolio is the increasing value of the existing development.
“We’re looking at, from what we’ve been told so far, having to possibly increase property taxes on residents in order to just maintain current service levels and fund the board priorities that we’ve already voted to fund, and so that’s just shocking to me,” said Supervisor Tony R. Buffington (R-Blue Ridge). “… It’s hard to believe that our values have gone up so much, yet we still are going to have to consider a tax increase on our residents.”
County Administrator Tim Hemstreet will present his proposed annual budget to the county Board of Supervisors on Feb. 9, launching Fiscal Year 2023 budget deliberations.
Real estate assessments for tax year 2022 are available online at loudoun.gov/parceldatabase. Printed assessment notices will be mailed to property owners the week of Feb. 7, according to Wertz’s office. Property owners who believe their assessments are incorrect may file an Application for Review with the Commissioner online at loudoun.gov/reaa by March 7. Thereafter, appeals may be made to the Board of Equalization until June 1.