VIRGINIA BEACH — Homeowners are likely to see higher real estate tax bills again this year with assessments growing more than 5% for most property owners. Assessments will be mailed Friday.

Virginia Beach residents have experienced a steady increase in the assessed value of their homes since 2022. The median home assessment has increased by nearly $100,000 over the same time period.

At a retreat last month , City Council members indicated that they’re not interested in raising the real estate tax rate in the upcoming budget.

In 2024, the City Council lowered the real estate tax rate from 99 cents to 97 cents per $100 of assessed value. At the current tax rate, each penny of the real estate tax will generate nearly $8.7 million.

The new assessments grew by 5.6% including growth and appreciation, but some properties will face even higher increases. The fiscal year 2026 median home assessment is $365,300, an increase of $17,600 from last year.

“Every neighborhood is going to appreciate based on the sales that occurred in that neighborhood for the calendar year 2024 or before that,” city assessor Sue Cunningham said at a City Council briefing on Tuesday.

Real estate assessments in Virginia Beach are projected to reach $86.9 billion for fiscal year 2026, which will generate $842 million in tax revenue.

The revenue makes up about a third of the city’s budget and funds public education, public safety, flood protection and roads.

After essentially remaining flat for years, assessments increased in fiscal year 2023 by 9.2% and by 9.7% in fiscal year 2024. The spike began to taper off at 7.37% last year. All the while, property owners have been saddled with higher real estate taxes.

“It does have a compounding effect that is a burden to the homeowner,” said Councilman Stacy Cummings.

Cunningham’s office assessed more than 163,000 parcels, including roughly 3,700 exempt properties. District 6, which includes the North End, and District 8, comprising the Great Neck area, generated the most value, followed closely by Districts 2 and 5.

“Values will continue to appreciate until inventory loosens up a little bit and interest rates reduce a bit for us as well,” Cunningham said.

Industrial and multifamily properties had the largest change in assessed values at 13.2% and 10.6% respectively. Cunningham said industrial properties and apartments experienced low vacancy rates and increased rents, and there was “a robust demand for self-storage,” according to data collected through 2024.

Most of the city’s real estate is residential at 78%, not including multifamily, at 8%. Single family homes comprise the bulk of it at 60%.

The lowest and highest valued residential properties had the largest increase in assessed value. Properties valued at under $150,000 appealed to developers.

“You put some carpet in, flip the property and get a return on investment,” Cunningham said.

Homes with the highest assessed values include the city’s oldest on the water and at the North End. New homes at the North End, Bay Colony, Sandbridge and Linkhorn Estates also had high assessed values.

Virginia Beach had $578 million in new construction value in 2024, and it was evenly split between commercial, multifamily and residential. Large commercial projects recently completed include the Amazon delivery center and a Publix grocery store.

Last year, more than 26% of the city’s new construction inventory was valued below $350,000. This year, only 18% is below that amount.

The average assessment of new houses built in the city is $903,000, with Sandbridge and the North End dominating the high end market.

“It’s the highest we’ve seen in recent years,” said Cunningham.

Real estate tax relief is available for disabled veterans, senior citizens, historic landmarks, agricultural land, among others. The largest increase was in the disable veterans program, which added 1,100 participants in 2024, bringing the total number to 6,242 recipients.