Real estate assessments on rise as Virginia Beach home values grow
VIRGINIA BEACH — Residents began receiving their real estate assessments in the mail this week and likely noticed another substantial increase in their home’s value, meaning homeowners are likely to see higher tax bills this year.
Assessments grew by more than 9% for most property owners, with townhouses and low-rise condominiums seeing a 10% increase. For example, a single family home that was assessed at $330,000 last year is now worth about $30,000 more. At the city’s current real estate tax rate of 99 cents per $100 of value, that would equate to a roughly $300 higher annual tax bill.
Total Virginia Beach assessments are projected at $76 billion in fiscal year 2024, which will generate $755 million in tax revenue for the city, Real Estate Assessor Sue Cunningham told the City Council on Tuesday.
The city real estate tax rate is the lowest in the region. The city reduced the rate to 99 cents per $100 of value in 2021.
Assessment notices contain an estimated tax levy, but the rate for the new fiscal year has not been established, so it’s subject to change. The City Council will host a public hearing next month to discuss the real estate tax rate.
Neither the city manager nor the council members talked about adjusting the rate at Tuesday’s meeting.
There are about 163,000 taxable parcels in Virginia Beach. Each cent of the current tax rate generates about a $7 million change in the total tax revenue, according to the assessor.
Overall, assessments have increased by 9.47% since last year, and the bulk of that is due to the growth in appreciation of properties, Cunningham said.
Appreciation is dependent on various factors such as supply and demand, interest rates, inflation and location. Virginia Beach had relatively flat home appreciations until 2022. Residential is experiencing the largest average growth in appreciation, at more than 9%. Appreciation of commercial/industrial properties, which includes hotels, has grown by 5% since last year.
Assessments have increased by more than 11% at residential properties valued under $150,000, because of a greater interest from investors, Cunningham said.
“They saw an opportunity to purchase homes, put a little improvement into them, and saw some investment return quickly on reselling in three to four to five months,” she said.
The highest average assessment based on the year residences were built was more than $640,000, for both the city’s oldest and newest properties.
Many of the houses built in Virginia Beach prior to 1950 are on the waterfront or close to the beach. The bulk of the city’s housing inventory was built in the 1980s, and the average assessment for those homes is about $330,000.
The real estate tax is billed in two parts. The first payment is due Dec. 5 of the same year. The second payment is due June 5 of the following year.
Real estate tax exemptions are available for senior citizens and people with disabilities, among others. Appeals of assessments will be heard through May 15.
Information: Visit assessor.virginiabeach.gov.