A local home builder once told me that my neighborhood, Tara-Leeway Heights, would never have teardowns. The reason, he shared, was because the prices of existing homes (which would need to be purchased and torn down) were too high relative to the price a builder could charge for a new home. The difference wouldn’t cover the building costs, plus a sufficient profit margin to make the project worthwhile.
That conversation took place about 10 to 12 years ago. Since then, seven new homes have been built on our street, which spans four blocks. (Twice as many homes have undergone major renovations and expansions.) I remember the first house on our street that was priced at just over $2 million. It seemed crazy to me, but it sold quickly. It struck me that, although lot values continue to increase, the demand for new homes and the prices buyers are willing to pay must be growing at a faster rate. Fast forward to today and we’ve grown accustomed to homes that are priced close to $3 million, sometimes more.
So, it seems reasonable to ask a basic question: Why are new homes so expensive here? I hear people talking about it—in person and on social media—all the time. Many also wonder why new homes seem to be getting bigger and bigger. In our cover story, “Sticker Shock,” Tamara Lytle explores the complex economics of new home building and why the prices are so high. The reasons are many, but the short answer is that building costs are also disproportionately high, and they have increased dramatically in recent years. Also, new homes are expensive because buyers can afford them.
Amid skyrocketing housing costs, Arlington County has been grappling with ways to make the community more affordable and inclusive. (We’ve already written about Expanded Housing Options, aka the missing middle. If you missed our story, click here.)
Churches—more specifically, the land they occupy—constitute one of the newer fronts in the battle over affordability and density. Houses of worship are facing declining congregations, and they are often located in or adjacent to neighborhoods. Many of us are eager to have more affordable housing options and to be welcoming and inclusive, but do we want a four- to six-story apartment building in our neighborhood where a quaint church used to sit? In “Leaps of Faith,” writer Kim O’Connell unpacks the current debate over the future of Clarendon Presbyterian Church and the precedent the outcome could set.
I hope your 2025 is off to a good start. Let’s continue to focus on making our community a wonderful place to live, do business and raise a family. As always, you can reach me with comments, suggestions and story ideas at greg.hamilton@arlingtonmagazine.com. Letters to the editor should be directed to jenny.sullivan@arlingtonmagazine.com. Thank you for reading Arlington Magazine. We are grateful for your support.
Greg Hamilton, Publisher