Old Town Alexandria has that rare DMV magic: cobblestone charm, waterfront views, and a “small-town feel” that’s still minutes from D.C. If you’re exploring DMV real estate in 2026—comparing Arlington homes, D.C. neighborhoods, Falls Church, and Alexandria—Old Town often lands on the shortlist fast. But it’s not just vibes: costs, parking, historic rules, and even flood planning can shape whether Old Town is the right fit for your life (and budget). Here’s the honest, local guide to the real pros, cons, and costs of living in Old Town Alexandria in 2026.

Want to see what’s currently on the market in Old Town and beyond? Search All Homes

How is the DMV market changing in 2026?

In 2026, buying a home in the DMV is less “throw an offer and pray” and more “make the smartest move with the least risk.” Many buyers are rate- and payment-conscious, which means they’re comparing homes more carefully—especially when two properties in Alexandria or Arlington feel similar online.

What that looks like on the ground:

• Turnkey homes still move quickly (especially in lifestyle neighborhoods like Old Town).

• Buyers scrutinize age of systems, HOA/condo docs, flood risk, and parking more than they did during the frenzy years.

• Sellers who price based on yesterday’s peak comps can see days on market stretch—while well-positioned listings still sell.

If you’re considering selling (even if you’re just “thinking about it”), getting a reality-check number helps you plan your timing: Free Home Valuation

Is Old Town Alexandria a good place to live in 2026?

For the right person? Absolutely. Old Town is ideal if you want walkability, restaurants, historic character, and easy access to D.C. without living directly in the city. It’s also one of the few places in the region where a Tuesday night stroll genuinely feels like a scene from a movie.

Old Town is not ideal if you need:

• guaranteed easy parking

• a huge modern floor plan for the price

• brand-new construction with minimal upkeep

• zero tourist foot traffic on weekends

What does it cost to live in Old Town Alexandria in 2026?

Let’s talk numbers—because “charming” isn’t a budget category.

Home prices in Old Town

Old Town tends to be a high-cost, high-demand pocket of Alexandria. Zillow’s neighborhood index has put Old Town’s average home value around $1.19M. (Zillow) Redfin has also reported Old Town median pricing around $1.0M in recent market snapshots (with days on market varying by season). (Redfin)

What that means in real life: $1M+ is common for many Old Town townhomes and historic properties, while condos can offer a lower entry point depending on size, building, and location.

Property taxes (Alexandria City)

For City of Alexandria homeowners, the FY 2026 real estate tax rate is $1.135 per $100 of assessed value. (AlexandriaVA.Gov)
Using Zillow’s Old Town average value as a simple example, that’s roughly $13.6K/year in real estate tax (before exemptions and assessment changes). (Zillow)

Parking and car costs (Old Town reality check)

If you’re living in Old Town with a car, parking is part of the lifestyle math—not an afterthought. Alexandria’s Residential Parking Permit Program exists largely because of higher demand in areas like Old Town and near Metro. (AlexandriaVA.Gov)

As part of the City’s FY 2026 approved budget, residential parking permit fees increased to:

• $55 for the first vehicle

• $75 for the second vehicle

• $250 for the third and additional vehicles (AlexandriaVA.Gov)

(And yes, permits don’t override all rules—like the citywide 72-hour rule.) (AlexandriaVA.Gov)

Transit perks that can lower your monthly “car dependence”

Old Town is one of the most transit-friendly lifestyle areas in NoVA, especially if you’re near the King Street–Old Town Metro and the King Street corridor. The King Street Trolley is free and runs between the Metro and key Old Town stops, which locals use constantly. (DASH)

What are the real pros of living in Old Town Alexandria?

1) Walkability that actually feels walkable

Coffee, dinner, errands, waterfront paths, and weekend events are all realistically doable without getting in your car. That’s a huge quality-of-life upgrade in the DMV.

2) Character you can’t replicate in newer builds

Historic architecture, brick sidewalks, and streetscapes that make the neighborhood feel established (because it is).

3) A “best-of-both-worlds” DMV location

Old Town works well for people commuting into D.C., Amazon HQ2/National Landing, and many Arlington corridors—without feeling like a nonstop office district.

4) Strong long-term demand

Old Town’s lifestyle appeal is durable. Even as the broader market shifts, walkable, close-in neighborhoods tend to stay on buyers’ shortlists.

What are the real cons of living in Old Town Alexandria?

1) Parking can be a daily friction point

If you’re coming from a place with a driveway and garage, Old Town can feel like a reset. Some homes and buildings have parking; many don’t. The permit system helps, but it’s not a magic wand. (AlexandriaVA.Gov)

2) Historic district rules can add time (and complexity) to renovations

Old Town includes locally regulated historic districts overseen by the City’s Board of Architectural Review, which can require approvals (like a Certificate of Appropriateness) for exterior changes visible from public ways. (AlexandriaVA.Gov)
Translation: charming homes can come with more planning before you replace windows, alter facades, or change exterior features.

3) Flooding and resilience planning are real considerations near the waterfront

Old Town has experienced flooding in low-lying areas, and the City has documented flood risks tied to heavier rainfall and sea level rise—especially along the Potomac-adjacent sections. (ArcGIS StoryMaps)
This doesn’t mean “don’t buy,” but it does mean you should ask smart questions about flood zones, insurance, and mitigation.

4) You may trade space for location

If you want a newer, bigger footprint at the same price, you may find more options in parts of Arlington, Falls Church, or farther-out Alexandria—depending on your priorities.

How does Old Town compare to Arlington, Falls Church, and D.C. neighborhoods?

Here’s the quick “personality match” version:

• Old Town Alexandria: best for charm, walkability, waterfront vibes, and “neighborhood energy” without full city intensity.

• Arlington: best for Metro-adjacent convenience, newer condos, and a faster-paced weekday lifestyle (especially Ballston–Rosslyn and National Landing).

• Falls Church: best for a quieter feel and strong community vibe (often with higher price points and tight inventory).

• D.C.: best for true city living—bigger neighborhood variability, and often more condo building/fee considerations.

What should first-time buyers know in Arlington VA?

If you’re a first-time buyer comparing Old Town with Arlington VA real estate 2026, the biggest difference is often what your budget buys and what your monthly costs look like (especially condo fees vs. historic-home maintenance).

A few quick tips:

• Get clear on your non-negotiables: parking, commute, outdoor space, and building amenities.

• In Arlington and D.C., condo documents and HOA health can make or break a deal.

• In Old Town, ask early about historic district requirements and any known property constraints. (AlexandriaVA.Gov)

For extra peace of mind while you shop, the KS Team Buyer Guarantee is designed to protect you in any market.

FAQs: Living in Old Town Alexandria in 2026

Is Old Town Alexandria expensive?

Yes—Old Town is one of the priciest parts of Alexandria due to its location and lifestyle demand. Neighborhood-level estimates place average values around the $1M+ range. (Zillow)

Is Old Town Alexandria walkable without a car?

Very. Many residents rely on walking plus Metro/bus options, and the free King Street Trolley makes it easier to move between the Metro and the waterfront corridor. (DASH)

What are the biggest “hidden costs” in Old Town?

The most common surprises are parking logistics/fees, historic-district renovation steps, and (in some areas) flood-risk planning and insurance considerations. (AlexandriaVA.Gov)

Can you renovate a home easily in Old Town?

Renovations are absolutely possible, but exterior changes in regulated historic areas may require Board of Architectural Review approvals. Plan for additional time and paperwork compared to non-historic areas. (AlexandriaVA.Gov)

Ready to explore Old Town—or price your Alexandria home for 2026?

Whether you’re daydreaming about a brick rowhome near the waterfront or you’re weighing Old Town vs. Arlington homes vs. D.C. neighborhoods, you’ll make better decisions with local strategy and real numbers. Start browsing inventory here: Search All Homes. If you’re considering a move, get a quick value estimate here: Free Home Valuation. And if you want a plan that removes risk on either side of the transaction, explore our guarantees: Buyer Guarantee and Seller Guarantee.

Ready to take the next step toward your Arlington VA home? Contact KS Team today to schedule a free buyer consultation or get your home’s value instantly with our free home valuation tool:
https://kerishull.com/home-valuation/

Don’t forget — our Buyer Guarantee and Seller Guarantee give you total peace of mind in any market:

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