Arlington Real Estate

Arlington, VA Real Estate Market 2025: Trends, Forecasts & Insights

The Arlington, VA real estate market continues to be one of the most resilient and competitive in the country as we move through 2025. With its unmatched proximity to Washington, D.C., walkable neighborhoods, top-tier public amenities, and forward-thinking development policies, Arlington remains a high-demand locale for buyers, sellers, and investors alike.

In this market report, we explore the latest pricing trends, inventory shifts, zoning updates, and local insights that shape real estate strategy in Arlington today. Whether you're planning to buy, sell, or invest, this guide is designed to help you navigate Arlington’s dynamic housing landscape.

Market Snapshot: Arlington Real Estate Data as of Q3 2025

• Median Sale Price: $770,000

• Median Listing Price: $735,000

• Median Price Per Sq Ft: $490

• Average Days on Market: 27

• Active Listings: 478 (up 52.7% YoY)

• Months of Supply: 2.67

• Assessed Value Increase (Residential): ~2% in 2025

Source: Redfin, Realtor.com, Ryan Property Tax Report

Current Market Dynamics

1. Buyer Activity Cooling, But Prices Hold Firm
While buyer demand has softened compared to the frenzied pace of 2021–2022, Arlington remains a seller-friendly market. Prices have held strong, especially in sought-after neighborhoods and close-in Metro-accessible zones. Buyers now have more room to negotiate but must act quickly on competitively priced homes.

2. Inventory is Building—Finally
After years of extreme inventory shortage, listings have increased significantly in 2025, offering more choice for buyers and relieving some pressure off price growth.

3. Legal Green Light for EHO Zoning
In a landmark 2025 decision, Virginia’s Court of Appeals reinstated Arlington’s Expanded Housing Options (EHO) reforms, which allow duplexes and multi-unit buildings in areas previously zoned for single-family use. This opens new opportunities for smart infill development and housing diversity.

Washington Post: EHO Zoning Reinstated

What’s Driving Housing Demand in 2025?

• Return-to-Office Trends are boosting demand for homes near Metro stations and employment centers.

• Amazon HQ2’s Long-Term Impact is still unfolding, but its influence on values and development continues to ripple through neighborhoods like Pentagon City and Crystal City. Read more: Amazon HQ2 Five Years Later—Boom or Burden?

• Metro Accessibility Premium: Homes within 0.25 miles of a station sell for 8–10% more, reinforcing the value of transit-oriented locations.

• Lifestyle-Driven Moves: Arlington’s walkability, school system, and community amenities remain major draws for families, professionals, and downsizers alike.

Property Types in Demand

• Single-Family Homes: Still the gold standard, especially in Lyon Village, Arlington Ridge, and Country Club Hills.

• Townhomes: High appreciation potential, particularly with EHO expanding development opportunities.

• Condos: More stable pricing with strong appeal for first-time buyers and downsizers.

• Smart Homes: Gaining traction, especially among tech-forward buyers seeking energy-efficient upgrades and automation.

Looking for advice on the best neighborhoods for your lifestyle or commute? Start here: What to Know Before Moving to Arlington, VA

Investment Outlook: 2025–2026

• Best Opportunities: Infill townhomes, aging single-family homes with renovation potential, and condos near transit.

• Zoning Flexibility: EHO reforms could significantly expand developable property value in specific districts.

• Tax Considerations: With assessments rising, owners should stay alert to changes in property tax liability and appeal windows.

• Sustainability & Smart Growth: Projects that prioritize energy efficiency and walkability will remain highly competitive.

Thinking of selling or curious about your current home value? Find out here

Conclusion: Why Arlington Still Wins in 2025

Despite regional slowdowns in sales volume, Arlington continues to perform as one of Northern Virginia’s most stable and attractive real estate markets. A combination of strong fundamentals, government proximity, urban-suburban balance, and evolving housing policy keeps it at the forefront for buyers, sellers, and long-term investors.

For a deeper dive into current opportunities, local strategies, and price forecasts, visit our latest market commentary: The State of the Housing Market in Arlington Virginia: 2025 Insights for Buyers and Sellers

Ready to explore your options in Arlington real estate? Contact Brad Winkelmann at Arlington Abodes Realty for expert, data-driven guidance tailored to your goals.

Call: 703-850-5223
Email: brad@arlingtonabodes.com 

“Guidance backed by experience. Results built on trust.”

Frequently Asked Questions: Living & Investing in Arlington, VA

What salary do you need to live in Arlington, VA?
To comfortably afford a median-priced home (~$770,000) in Arlington in 2025, most buyers should earn at least $150,000–$175,000 annually, assuming modest debt and a 20% down payment. For renters, an annual income of $90,000–$110,000 is typically needed to live comfortably.

What is the nicest neighborhood in Arlington, VA?
Top contenders include Lyon Village, Arlington Ridge, and Country Club Hills. These areas offer larger homes, tree-lined streets, top-rated schools, and proximity to Metro stations and D.C.

Is it better to rent or buy in Arlington, VA?
With steady appreciation and low homeowner vacancy rates, buying often makes long-term financial sense. However, if you plan to stay fewer than 3–5 years or need more flexibility, renting may be a smarter short-term choice.

Is it cheaper to live in Alexandria or Arlington?
Alexandria offers slightly lower median home prices (~$662K vs. Arlington’s ~$770K), but pricing depends heavily on neighborhood, property type, and proximity to Metro.

Why is rent so high in Arlington?
High demand, limited space for new development, proximity to D.C., and access to top-tier amenities and jobs all contribute to elevated rental costs in Arlington.

Is Arlington, VA a good place to invest in real estate?
Yes. With consistent demand, strong schools, a stable job base, and favorable zoning reforms like EHO, Arlington remains a smart choice for both appreciation and rental income.

What are the pros and cons of living in Arlington, VA?
Pros: Excellent public schools, walkable neighborhoods, proximity to D.C., strong property values, vibrant dining and culture. Cons: Higher cost of living, traffic congestion, limited affordable housing options.

Last updated: October 2025