Real estate prices in D.C./Arlington
 

My husband and I will be relocating to the D.C. metro area after the Christmas holidays and have been doing some preliminary checking and research on housing costs and neighborhoods in the area. I come from a high cost of living area (in fact D.C. has a lower cost of living than Chicago currently) however the real estae prices seem out of line with everything else and are staggering. We were initially looking for a single family home in the district but found we did not want to pay that much and so are currently looking in Arllington, Falls Church and McLean. Do you think recent events and tragedies will have an impact on the real estate market in these areas (maybe they already have!) If so do you think housing costs will rise in the next 3 months or lower. We want to time our move so that we get the best possible deal obviously. P.S. This question is not meant to be insensitive even if it sounds that way. We are asking an honest question.

I live in the Northern Virginia suburbs. Up to recently we had the best economy in the country but the closing of National Airport will cost our economy billions. People are waiting in line just to get into the building at the unemployment office. <BR> <BR>How this will affect our realestate prices is unknown though if they drop our local governments and schools will really suffer. <BR> <BR>Generally the closer to Washington Arlington or Tyson Corner your home is the higher the prices. Close in suburbs are expensive but the schools are mostly minorities which affect test scores, unless you are in Mclean, which is very pricey. <BR> <BR>I recomend Annandale outside the beltway and Vienna. Fairfax is real nice. Falls Church City is nice but many places that have a Falls Church address is mostly hispanic and asian. I am not saying this is bad but if you feel uncomfortable being a minority in your community, then it could be an issue. Inside the beltway in both Maryland and Virginia is a true United Nations it is great in some ways but it hurts the schools and housing. Many homes have three or four families living in them in parts of the area with a Falls Church address, not the City of Falls Church. <BR> <BR>Good luck.

Consider this before you buy in Virginia: National Airport is closed, but will probably re-open. If you buy while it is closed, you may not know how much jet noise your home will receive until it is too late. <BR> <BR>Investigate before you buy.

I live in Falls Church, just a block away from Falls Church city. Housing prices rose dramatically over the past year, but they are not climbing as rapidly in the past month before the attack. I do not believe housing prices will change dramatically one way or the other in this area -- I have lived here for 20 years and prices either rise rapidly or rise slowly, but they don't drop. In many ways a move after the holidays is a good time, it's a slow real estate time in any year and probably interest rates will be very low. In spite of the person who tried to turn you off Falls Church because of the Dreaded Minorities, there are many reas of Falls Church, not just Falls Church city, where homes range from subsidized apartments to houses at $500K and up. Any real estate agent in the area worth their salt can direct you to the neighborhood that's right for you, for your pocketbook or your preference. <BR> <BR>Within a half-mile of my house there are houses that cost $400K and houses that cost under $300K. A three bedroom, 2 bath brick rambler with a basement costs about $365K right now. What I like about my Falls Church/McLean neighborhood is the diversity of homes (old/new, big/small) and individuals, from many occupations, from many parts of the country, and many parts of the world. <BR> <BR>The recommendations for Fairfax, Annandale and so forth put you in the midst of almost unbearable traffic. My location is 10 minutes from my job at Tysons Corner, 15 minutes from my doctor in downtown DC, 5 minutes from my son's school, 5 minutes from the Beltway and I-66, and a walk to the subway. In a snowstorm or an emergency we can do without a car and walk for our groceries, public transportation, or a coffee at Starbucks. <BR> <BR>If you have any questions about particular neighborhoods, and/or if you want to share more about your budget, lifestyle, family, etc., I'd be glad to offer my two cents for what it's worth, just as having been a 30+ year resident of the Falls Church/Arlington/Annandale/Fairfax area. <BR> <BR>

The real estate market in Virginia is based on two things, location in relationship to employment centers and schools. <BR> <BR>Lets start with the schools. This is a diverse area with people from all over the world, especially in the last 15 years. It has had an incredible effect on the schools in Fairfax County. The minorities, while bringing diversity to the area, have brought down test scores in a number of schools, this has affected real estate prices in areas dominated by the minority school populations. Those neighborhoods with a larger percentage of whites and asians in some cases have schools with higher test scores and better schools bring higher real estate prices. The minorities moving into Fairfax County are good people but they struggle in a school where the language is not their first language. Would you and I do well in school in Spain? <BR> <BR>As for the jobs, the major employment centers are along Highway 66, the Dulles Toll Road and Tysons Corner. The closer you are to those areas, the more expensive the houses. The same house that would cost $300,000 in Springfield, further from the job centers, would cost $600,000 in Mclean, right next to major job centers. <BR> <BR>This is an interesting area to live but you will find many cold type A people and a stressful life style. Trust me, this place is different. Rush hour starts at 5:00 am and people work long and hard hours. In general offices are more work- work than other places in the country. Less chit chat, more work! <BR> <BR>Good luck to you!

First of all, I believe diversity and "minorites" are a good thing. We live in the Lincoln Park area of Chicago and quite enjoy the diversity there. Second, we are definitely not looking to go beyond the beltway, in fact, we would rather liver closer in than Fairfax County. As I said, we originally looked in the AU area in the district and couldn't afford what we wanted there so moved outward to Arlington. We are looking in the 22201 and 22207 areas, along I-66. Maybe I was under the wrong impression, but I had heard from many that the North Arlington schools oin the area were among the best, please someone help me with this. I was just wondering if since the attacks peope were tending to move further out from the district and if housing costs would begin to level out, maybe this isn't the case?

Forgot to mention we have a 2 year old daughter and hubby will work adjacent to White House. I am an attorney and will work within the district but do not have a job there yet. Long hours do not scare us. Again we come from Chicago where I arrive at work at 7:30-8 and leave at 6p.m. Husband gets to work 7am and leaves at 6:30p.m. We know the work day will be long and that is why we want to live closer. The idea of adding a 1 hour commute each way (2 hours total) to 10hr. workday does _n_o_t_ appeal to me.

I agree with you about the diversity and love the Arlington/McLean/Falls Church area because of it. Some of the "distressed areas" and poor school scores you're hearing about exist, again, in pockets here and there, but overall Arlington County and Fairfax County and Falls Church City's schools are the some of the finest in the nation. <BR> <BR>It's bothersome to me when people assume "minorities" means poor test scores and lower real estate prices. negative. These issues are the result of poverty, not where someone comes from or what color they are. <BR> <BR>Your search along the I-66 corridor/Arlington is a great location -- you'll find what you want. My doctor is a block from AU and from my home in Falls Church (blocks from the Arlington border) I'm there in 15 minutes, even at rush hour. You can extend to 22101, 22102, and 22046 and get more of the same. <BR> <BR>Different strokes for different folks, I know, but I personally wouldn't trade for a bigger house in Springfield in neighborhoods that all look the same, and the perpetual traffic gridlock. A number of folks we know started out there but chose to move in closer to get away from all that. I live in a 3 bedroom, 2 bath house with a full basement, 1,500 s.f. lot, a half-mile from Metro and in one of the best school districts in Fairfax County, and my house just appraised for $300K. Granted it's 70 years old but that's part of the charm!! <BR> <BR>Good luck. <BR> <BR>

I think you're smart to be looking in Arlington/McLean. I hear the schools are good, too, although our son is still a toddler, so I can't prove that. But a friend who was moving back to the midwest from Arlington said the thing he'd miss the most was the schools. <BR>I guess housing prices could drop in the next few months, but if you're planning on being in DC long-term, it seems to me that you're better off worrying about getting a house you like than getting the best deal. For a long time, Arlington inventory has been extremely limited, so if you like something and can afford it, make your move.

As Steve and other posters have mentioned, price is affected by proximity to jobs. <BR> <BR>With National Airport out of commission for the forseeable future, many jobs have been lost (or at least relocated) and I think we can expect more houses on the market, with decreased demand, in the near future. This has got to depress housing prices. <BR> <BR>As far as test scores go, sure, if there's a language gap, then test scores will drop. But if it's because of a language problem on the part of the test-taker, it does NOT follow that the school is not as good as one that has higher scores and fewer disadvantaged test-takers. <BR> <BR>This is the hazard of relying too much on test scores -- a school with lower test scores could actually be a better one, but with many students whose scores are undermined by issues unrelated to the quality of the school.

Diversity in Northern Virginia comes with a price. Look at South Arlington, it is really not that diverse, everyone is hispanic. <BR> <BR>Look out for neighborhoods that have alot of apartments, that tends to lower property values. <BR> <BR>Diversity has affected the schools. The minorities are good people but they have a hard time adjusting to our schools and life style. Forget about all the political correctness, you will know what I talking about when you move here! <BR> <BR>I also agree with the other poster. The Washington area is a place people come to work and work they do. A 12 hour day is typical. I also miss the friendly offices I remember from Omaha. <BR> <BR>This type of work work culture the other poster talked about makes it a area less friendly, less family and not laid back. People do not talk to their neighbors. I suspect it is even tougher than Chicago. I use to live in the midwest, this is one tough town.

While you're thinking zip codes, add this one ... 22314. Do some investigation. 22314. Take your time. 22314. Think about traffic congestion. 22314. Think about property value. 22314. This is one of the hotest zips in the USA. There are many reasons. Check it out. 22314. Ciao

A quick search on realtor.com shows that of the 102 properties listed for 22314, only 10 are single-family and the rest are condos.

Isn't 22314 Old Town? I wouldn't be pushing Alexandria public schools; if you're going to veer from Metro's path, go to McLean.

You should also consider Montgomery County, Maryland. Fabulous schools, very diverse and (sorry, personal prejudice here) easier to get around in than Northern Virginia. However, the closer in you are, the more expensive housing is. Having grown up in the Chicago suburbs, where 40-50 miles out isn't unusual, 20 miles here is considered far out. You may find it necessary to rent for 6 months while you look for a neighborhood. I've lived here for 30 years and I don't think housing costs are going to drop, they just may not increase as rapidly as they have been. (Last month we saw three homes in our neighborhood put up "for sale" then "sold" signs with about 2 weeks turn-around.) But that will probably be true country-wide, and not just here. What is going to hit you the most, will be the cookie-cutter neighborhoods here. It seemed to me that there was way more custom building in the Chicago area (and had been for many many years) than in the DC area. Don't expect you are moving to a lower-cost-of-living area, however. You'll pay as much for a basic development house here as you would for a custom built home in Chicago. Location, location, location is the trite and true homily that applies. Good luck.

Judy: I live in Chicago, too. Diversity in Lincoln Park????? By diversity, are you referring to the colleges that the residents there attended? (Go Blue flags vs. ND flags displayed on Saturday afternoons.) There's diversity in Wicker Park, Hyde Park and Uptown - but sorry, not in Lincoln Park. <BR>Leone: what was that zip code, again?

Just for the record,I guess it depends on where you live and what you do, but neither my husband nor myself work 12-hour days (and I'm a part-owner/vice president of a consulting firm, he's a school teacher) nor do any of our friends, and I think we all do pretty well financially and culturally in this town. And we talk frequently to our neighbors, as do all our friends in Arlington, Falls Church, and McLean. I know of folks in the $1M type neighborhoods in Great Falls and parts of McLean where the parents are never home,the kids are alone day and night, and the neighbors are transient strangers, but it's not been my/our experience in the family-oriented neighborhoods of the above locations.

Why that was 22314, of course. And may I expand a bit to add this: check Mapquest for Rte. 236 (same as Duke Street) from Old Town Alexandria to I 395, plus the area of Delray west of US 1. Someone suggested a relatively few houses are on the market. That of course is not correct. And many more are being built. I suggested 22314 because it's close to Metro ... and it's the hotest area around DC, thus good for the investment ... and it offers a lot. It is not necessary to go west out I 66 or to McLean, and have to face that traffic. The beltway is a mess!! The trend these days with many professionals is to move back toward the city. And yes, that zip code was 22314. Please write it down. Have a good day. Ciao

I'm a DC area resident in Montgomery county in a very diverse community (whites are minority actually, just under 50 pct) and nice houses are reasonably priced, there is a metro line and you are within about 1/2 hr to central DC--that's Takoma Park. I looked in Arlington, Lyon Park, etc and liked it fairly well at the time I bought (around 1990) but could not afford it as houses in that area, No VA in general, seemed to be about 25 pct higher than in a good Maryland suburb. I'm glad I didn't, actually, as the traffic congestion is terrible in NoVA, even worse than Maryland, and I don't care for their politics. Partly higher housing prices are offset by property taxes which are slightly lower in VA, so you make it up, partly it's for social reasons and taxes if you want to know it, as NoVA does not have as diverse a population in demographics and income and VA in general is known as employer-friendly, meaning for example, unemployment compensation is the lowest in the area in VA, it is a shamefully low level (but employers like it as their taxes are low) and workers have limited rights. In any case, I don't think recent events will affect real estate at all in the way you are suggesting. No one is going to move from NoVA because they are near an airport and airport service workers can't afford those expensive homes you are talking about. The only reason I think that he NoVA housing market might cool a little is probably due to the failures and scaling down of dot.com and computer technology firms who employ a lot of people in that area. I agree with someone else's comment that housing prices never seem to go down a lot in DC, they either stay the same or rise. Housing prices did go down a lot where I live in the early 90s recession period, there were real bargains from about 1991-1995. Personally, I think you are in a good bargaining position just because of normal seasonal housing prices; there are fewer buyers in late Fall/winter so if someone needs to sell, you have an advantage; also, it looks like a lot of people are (so far at least) perhaps worried about spending and the economy, which also means fewer potential buyers, probably. I like Arlington and Falls Church fairly well, McLean is obviously a very high-price area, one of the most expensive in this area, but you couldn't pay me to live around Tyson's Corner. Are you aware what traffic is like around there? I have to pass it coming to work on the beltway and 5+ years ago it wasn't that bad, now the traffic trying to get off the beltway to Tyson's backs up onto the freeway and is horrendous. My office used to look onto I66 and it is also horrendous during commuting hours. Well, I hate traffic so that would bother me, but maybe not you.

As a Lincoln Park/ Lakeview resident of Chicago who used to live in D.C. and who still goes there often, I have some observations. First, there is diversity in Lincoln Park/Lakeview, maybe not as much as other areas but Chicago as a whole is VERY diverse. I go to Target at the corner of Diversey and Western and see more hispanics than caucasian. In my complex, Plaza 32, we have white, black, asian, hispanic, hetero and homosexual among many others. You can get any type of cuisine you want without leaving a 2 mile radius. It is NOT suburbanite white, families, with picket fence houses. <BR> <BR>I lived in D.C. while attending law school at Georgetown so I never owned a home there and lived in an area mostly populated by students, not families. But, as I often return, I view North Arlington as a great location for proximity to downtown and as a great walking/public transportation area. Though Judy didn't mention Maryland, I add that I view Chevy Cahse just north of American University in the same manner however as has already been disussed, housing costs in these areas are high. <BR> <BR>I would disagree also with someone who posted earlier that the general cost of living in chicago is lower, its not. It appears Diane was comparing the metro D.C. area with the Chicago suburbs (not the city) which is like comparing apples and oranges. Things in the burbs are cheaper. Here in the city, I have a small 2 brm condo, no washer/dryer, no central heat/air, no parking included, no view of the lake and it cost me $325k 2 years ago! I looked at the price of gas this morning as I was walking to the subway, $2.11 for regular at Amoco. When we go to the movies it's $10.50 person plus either a charge for parking or a taxi ride there. I could go on and on. I think in general entertainment and living expenses in the Arlington/D.C. area are less, though housing there is pricey. If however, the unemployment rate in the area rise and people begin move away, these housing costs could go down.

Just to clarify: When I pointed out that realtor.com listed 10 single-family homes and 92 condos, that is of course not quite the same as very few homes being on the market. If new developments are going up, then they are probably being sold by the developer rather than through a realestate agent web site, which also wouldn't capture FSBOs, exclusives, etc. But it does roughly indicate the relative proportions of single homes vs condos, which is then an indicator of the nature of the community's design. <BR> <BR>As far at being the "hottest" area, those are they very areas that are the first to cool down again when the market does, so be careful. <BR> <BR>I don't mean to pick on any specific ZIP code, just to point out factors to consider in choosing an area.

Beth: Just an FYI: the Target store at Diversey & Western is either in the Avondale neighborhood or Logan Square neighborhood - not Lincoln Park.

I don't know why I keep going back to this post, I guess we all just feel strongly about where we live, huh?! Christina, I agree with you about the state of Virginia's politics, but I'm very liberal and have plenty of liberal friends over here...plus the places you work are filled with people from MD, DC, VA (and even WVA) so you get plenty of points of view in your daily life. I just have to comment about the "Northern Virginia traffic" thing and then I'll stop taking up cyberspace -- I live in Falls Church, commute to Tysons, visit DC, and I NEVER -- let me tell you, NEVER -- get on the Beltway for anything I need in this area! I don't have to! As I said, I'm downtown in 15-20 minutes in rush hour, not even going on I-66!! It's when you get on the Beltway, or head to Fairfax or Springfield or Annandale, that you experience the "horrendous No. Va. traffic." The Beltway takes me OUTSIDE where I live, into the congested and ugly suburbs -- as it does in Maryland. Except for your point about liberal politics, there really isn't any difference between life, commuting, and traffic in close-in Montgomery County, Chevy Chase, and Arlington/Falls Church. <BR>

OOPS! Looks like I stepped on someone ones toes. I never said the Target was in Lincoln Park, it is just west by a few blocks and is the closest mass market retailer so many Lincoln Park folks do visit it. It is actually in a neighborhood I would NEVER live in not because of diversity but because of the run down houses, gritty feel and high crime rate per my husband who is in law enforcement. Anyway, Lincoln Park is rather expensive but very safe and while not diverse in income or educational levels maybe, there IS ethnic, racial, and religious diversity. Sorry to cut back in here but felt like I needed to explain.

Beth and Judy - <BR> <BR>I was raised in Chicago and have spent most of my adult life here. I have never heard anyone proclaiming the diversity of this city - until now. As many wonderful things as Chicago has to offer - diversity within the vast majority of its neighborhoods is not one of them. Rogers Park, perhaps - but LINCOLN Park? It's full of well to do yuppies and some VERY wealthy people, and has been for a very long time. As for the Target on Elston, it is the ONLY Target within the city limits of Chicago. That might explain the many different ethnic/socioeconomic groups you see in there - but it certainly doesn't make Lincoln Park diverse (and, and AyCarumba noted, the store isn't even in the Lincoln Park area).

oops - meant "as", not "and"

I think in general interest rates are dropping which means a great time to buy. I also think the demand for housing in the D.C. area will decrease as the number of jobs available decreases. If you are moving for a job you are better off than most and may be one of the few buyers in what might be a recession. You should certainly not worry about prices increasing dramatically in the next few months.

Hi, Judy- <BR>I live in ARlington....zipcode 22201. I absolutely love it. It's a great mix of cultures and a good compromise between the city and the suburburbs. But there's a big difference...I'm renting. I get depressed everytime I see one of those "cute" little Arlington cottages, selling for almost a half-mill. ($450,000 to be precise). A lot of people like Takoma Park in Maryland. It's kind of artsy and has very, very cute houses. I think you get a little bit more house for your dollar up there. My guess is that the housing market will drop at bit here. The real estate market was through the roof when the economy was booming, but I anticipate that housing prices will come down as the economy slows down more. <BR>Good luck and welcome to the neighborhood!

ttt!

An article in the WSJ today predicted that housing prices in DC would rise.

Martha, <BR> <BR>I'm interested in the Wall Street Journal article. Can I get it online and what was thte title? <BR> <BR>Thanks

www.realestatejournal.com <BR>I think

Wow Martha, thanks for the great article. It makes perfect sense now that I think about it. According to the article some large market cities with their own local economy such as my home city of Chicago are expected to have leveled to moderate rises in housing costs. Cities that are considered vacation areas and tourist hotbeds ( such as San Francisco and Denver)are expected to have a depressed housing market. NY is also expected to have a greatly reduced demand and lower costs for obvious reasons. D.C. on the other hand is expected to have GREATLY raised housing costs. Apparently in times of terror and war the demand for housing is greater around the capitol and large miltary based cities. I didn't think real estate costs in D.C. could raise that much more!

What an interesting conversation! Everyone seems so eager to live next door to someone who doesn't look like them but certainly they don't want to live next to someone who doesn't think like them. (Hint, hint: If you live in Virginia, you might have to....oh, no.....live close to a conservative!!!) <BR> <BR>Reminds me of the TV show The View. They all look different but think alike and think that is diversity.

If everyone wants to live next to people that do not look like themselves then why were suburbs developed in the first place? If you look at history, suburbs were developed for whites to move away from blacks. Now in todays politically correct world people move further out because they want better schools. In other words, they move out further to places where more people look like themselves if they are white. Look at Loudon County Virginia, basically white and growing very fast full of whites moving out of Fairfax County for better schools (more whites). <BR> <BR>I am not making a value judgement but according to stats the best schools are dominated by white and people of all races want their kids in the best schools. The racial politics of the Virginia suburbs.

We just bought a townhouse in Falls Church (near the Arlington border) this spring. Prices have definitely gone up since we bought, and the prices I've seen lately don't seem to be going down at all. <BR> <BR>If I had to compare to Chicago (my sister in law just bought a similar home there the same time we bought ours), I'd have to say real estate is about the same price in DC. In fact, it may be a little more expensive here (it's hard for me to compare because my sister in law lives in Palatine, which from what I can tell is farther from Downtown Chicago than we are from Downtown DC). The house she bought in Chicago is much bigger than ours (+500 square foot difference) and they paid about $30,000 less. <BR> <BR>

Amy - Palatine, IL is 30-35 miles from downtown Chicago. I would imagine that the distance between Falls Church and D.C. would be much less. Further in Falls Church I believe you are still on the metro/subway line (at least I know you are in Arlington and I think it goes even past Falls Church) In Palatine, you would be too far out to ride the subway as it only goes to O'Hare airport. You could only take a Metra/Amtrak train in so your public transportation is limited. These are probably the reasons your sisters house was cheaper than yours.

Let's look from a different angle. Commuting in DC is awful. Assuming you and your husband are going to work in downtown DC, consider starting there and work out the best commuting paths and then look at houses. With a 2 yr old, it would be nice to see her instead of commuting an hour(or more) each way. Sometimes you have to give up space for proximity. From the White House area (& I speak personally), Metro takes you easily into certain sections of Arlington & Falls Church OR into Upper Northwest DC and into Bethesda/Chevy Chase. If you like spending well over $200/mo in parking AND hour plus commutes, feel free to drive, but rush hour traffic from that area doesn't break up until 7:30 p.m. Realize you are not going to find anything under $350 in these areas, but in the $350-400 range, you can do OK (not great). At age 2, schools are not an immediate concern, seeing your daughter is. While there are plenty of nursery schools around, who is going to care for your little one? Good housekeepers are hard to find (almost all with diverse backgrounds). If you are in and out of DC in a couple years, think TIME as a value. Then factor your diversity and housing values. There are other nice DC neighborhoods other than AU Park. Maybe rent a house for a year to get a feel for the area. Quality of life as in time with your dumpling should count which is why "inside the beltway" IS expensive. Get over it and buy a smaller house.