Housing Costs in Arlington, VA: Complete 2025 Guide

Methodology: Housing estimates for 2025 in Arlington use published rent and sale price data, local property tax rates, and typical HOA fees where available. When city-specific numbers are missing, regional ranges for similar Virginia markets are applied. All totals are rounded and expressed as monthly costs. Actual expenses vary depending on neighborhood, housing type, and household size.

The Housing Market in Arlington Today

Arlington’s housing market in 2025 is shaped by its proximity to Washington D.C., strong job market, and desirable quality of life. As a major employment hub with companies like Amazon HQ2, Boeing, and Deloitte, Arlington attracts a diverse population of young professionals, families, and empty nesters. This steady demand keeps both rental and purchase prices relatively high compared to other parts of Virginia.

The city’s well-regarded schools, parks, dining and entertainment options make it an appealing place to settle down. However, limited land for new development constrains housing supply, putting upward pressure on prices. Older neighborhoods like Aurora Highlands and Ashton Heights see rising values, while newer high-rise condos and apartments command premium rents in areas like Ballston and Clarendon.

Compared to nearby Alexandria and Fairfax County, Arlington’s housing costs are slightly higher on average. But for many, the convenience of living close to D.C. and the overall quality of life justifies the expense. As remote work becomes more common, some residents are considering farther out suburbs for lower costs. But Arlington’s amenities and strong community fabric continue to attract those willing to pay for an urban lifestyle.

Renting in Arlington: Typical Costs and Trends

Renting is popular in Arlington, with over half of households being renters. Young professionals flock to trendy high-rises near the Rosslyn and Ballston Metro stations, where a one-bedroom typically goes for $2,300 to $2,800 per month. Families and empty nesters often opt for larger 2-3 bedroom units in low-rise garden apartments or townhome communities, which range from $2,600 to $3,500 monthly.

Neighborhoods farther from Metro stops like Shirlington and Fairlington offer slightly lower rents, but easy bus access to the Orange and Blue lines still makes them convenient for commuters. Walkability to local dining, shopping, and entertainment commands a premium, with apartments near retail hubs like Clarendon and Pentagon City often priced 10-20% higher than more residential areas.

Rental costs in Arlington have risen steadily in recent years, outpacing income growth. But with Amazon HQ2 bringing an influx of high-paying jobs, economists expect rents to continue climbing over the next few years. Many renters are considering buying to lock in a fixed monthly cost, but high home prices remain a barrier for those struggling to save for a down payment while paying Arlington’s hefty rents.

Owning a Home in Arlington: Prices, Taxes, and HOA Fees

Buying a home in Arlington requires deep pockets, with the median sale price hovering around $750,000 in 2025. Single-family homes in established neighborhoods like Lyon Park and Cherrydale often exceed $1M, while condos and townhomes provide lower-cost entry points in the $500K-$800K range. But even at those prices, many young families find themselves priced out of Arlington’s ownership market.

On top of mortgage payments, Arlington homeowners face substantial property taxes. The city’s tax rate sits at $1.013 per $100 of a home’s assessed value, which equates to about $7,600 per year for a median-priced property. Condo and townhome owners also contend with monthly HOA fees, which cover exterior maintenance, amenities, and master insurance. Typical HOA dues in Arlington range from $200 for basic townhomes up to $700+ in full-service high-rises.

While steep entry prices make homebuying a challenge, Arlington owners have enjoyed steady appreciation over time. Even during economic downturns, the city’s strong job market and location inside the Capital Beltway help insulate home values. But as remote work reshapes housing preferences, some analysts wonder if Arlington’s tightly packed housing stock will fall out of favor compared to roomier options in outer suburbs.

Utility & Upkeep Differences

Utility costs vary between apartments and houses in Arlington due to differences in square footage, energy efficiency, and billing practices. Renters in large apartment complexes often benefit from bulk pricing for water, trash, gas and sometimes electricity – costs that are bundled into monthly rent. Owners of single-family homes and townhomes pay these bills directly, which can add $200-$400+ to monthly expenses.

Arlington’s humid subtropical climate means heating and cooling needs drive a large portion of utility costs. Older houses with less efficient HVAC systems and ductwork require more energy to maintain comfort compared to new, well-sealed apartments. Homes with individual yards also incur added water expense to maintain landscaping, while common area upkeep is shared in apartment and condo communities.

Maintenance is another key cost difference between renting and owning in Arlington. While renters are only responsible for minor repairs inside their unit, owners must budget for both routine and major home upkeep. Older properties may need frequent system replacements and updates, which can strain budgets. Although HOA fees cover some exterior maintenance in townhomes and condos, owners still face repair costs for internal components like plumbing, HVAC, and appliances.

5-Year Rent vs Buy Outlook

Deciding whether to rent or buy in Arlington requires weighing both short-term affordability and long-term investment potential. In the near term, renting is often cheaper on a monthly basis, especially when factoring in expenses like down payments, property taxes, insurance, and maintenance that owners incur. But as rents continue to rise, the gap is narrowing.

Assuming a 10% down payment, today’s median-priced $750K Arlington home costs roughly $4,500 per month including mortgage, taxes, and insurance. That’s about $1,500 more than renting a comparable property. But over a 5-year horizon, owning starts to make more financial sense. With Arlington’s typical 3-5% annual appreciation, that $750K home would be worth over $900K by 2030. Even after accounting for selling costs, an owner would likely walk away with a sizable equity gain.

But ownership isn’t always the clear choice. Buyers who may move within a few years could see appreciation wiped out by closing costs. And in a market downturn, owners aren’t guaranteed to see their home value rise. Ultimately, the decision depends on individual circumstances. Families planning to stay long-term often benefit from locking in housing costs, while those valuing flexibility do best renting. A balanced housing budget for Arlington should keep total rent or mortgage costs under 30% of household income.

FAQs About Housing Costs in Arlington

How much are HOA fees in Arlington?
HOA fees in Arlington typically range from $200/month for basic townhomes to $700+/month for high-rise condos with extensive amenities. Single-family homes not in HOAs do not pay these fees.

What is the property tax rate in Arlington?
Arlington’s 2025 property tax rate is $1.013 per $100 of assessed value. For a median-priced $750,000 home, that equates to an annual tax bill of approximately $7,600.

Is renting cheaper than buying long-term in Arlington?
Renting in Arlington is often cheaper than buying on a monthly basis. But long-term, owners can come out ahead. With a 10% down payment, owning a median-priced home costs about $1,500 more per month than renting a comparable property. But after 5-7 years of appreciation, most owners build substantial equity.

Do houses have higher utility costs than apartments?
Yes, houses in Arlington typically have higher utility costs than apartments. Older homes with less efficient systems use more energy. Houses also have individual water bills, which can add $50-$100/month. Most apartment dwellers have water, trash, and sometimes electricity included in monthly rent.

What’s the monthly cost difference between apartments and houses in Arlington?
The monthly cost difference between renting an apartment and owning a house in Arlington is roughly $1,500 as of 2025. Median rent for a 2-bedroom apartment is about $3,000/month. Owning a median-priced $750,000 home costs around $4,500/month including mortgage, taxes, insurance, and utilities.

Making Smart Housing Choices in Arlington

Navigating Arlington’s expensive housing market requires careful planning and realistic expectations. Renters can keep costs manageable by looking farther from Metro stations and trending neighborhoods, or considering smaller units. Splitting a 2-bedroom with a roommate is often cheaper than living alone. Those hoping to buy should aim to save at least 10% for a down payment, while budgeting for taxes, insurance, and upkeep.

Prospective owners also need to weigh their long-term plans. Buyers who intend to stay over 5 years are most likely to benefit from Arlington’s rising home values. But those who may relocate sooner could be better off renting and investing their savings elsewhere. Consulting a financial advisor can help map out the wisest path.

Ultimately, housing is a highly personal decision. Renters prize the flexibility to move as their needs change. Owners value the stability of a fixed mortgage and pride of having a place to call their own. By understanding the full costs of each option and planning ahead, both renters and owners can find a way to afford Arlington’s high-priced housing market. The key is striking a balance between managing monthly expenses and achieving long-term financial goals.