Living in Alexandria, Virginia - Real Estate Tour with Chris Colgan

Overview

If you're thinking about buying a home or moving to Alexandria, Virginia, this is the full breakdown. After 22 years selling Northern Virginia real estate, I'll walk you through the pros, the cons, and what's actually happening in this market right now. (0:00)

Key Takeaways

• Location is Alexandria's biggest pro: minutes to D.C., the Pentagon, Reagan National, and Amazon HQ2 in adjacent Arlington. The location alone justifies a lot of the premium.
• Median home price hit $695,000 in February 2026, with homes selling at 98.4% of list price in 30 days. Inventory has loosened slightly but the market is still tight on well-priced properties.
• Pricing range is huge: condos near the Springfield border start in the $300s, Old Town townhomes can run multi-million. Some of the most expensive homes ever sold in Virginia have been in Alexandria.
• Old Town is one of the top destinations in the U.S. per Travel + Leisure. Cobblestone streets, 18th- and 19th-century rowhouses, the King Street boutique scene, the Potomac waterfront.
• $1B INOVA Alexandria Hospital is under construction on the former Landmark Mall site, opening 2028 with 192 beds and ~2,000 healthcare jobs, the largest healthcare investment in Virginia history.
• Cost of living runs ~39% above national average, with housing roughly 98% above. Justified by job market access (federal, defense, Amazon HQ2 spillover) but a real consideration for buyers coming from outside the region.

The Location: Why Most People Move to Alexandria

The biggest pro and probably the biggest thing they say in real estate about Alexandria is location, location, location. Alexandria has one of the best locations in the country. (0:24)

It's right next to Arlington, Virginia, which has an amazing job market. You've got Amazon's HQ2, Reagan National Airport, Boeing's headquarters, the Pentagon, Lockheed, Raytheon. Then you're close to Maryland and National Harbor, and you're so close to D.C. and downtown D.C. (0:32)

And Alexandria itself has a lot of companies based there with high-paying jobs. The federal employer base, defense contracting, government services, professional services firms, they're all here or close enough that the commute is workable. (1:08)

Housing Options: From $300K Condos to Multi-Million Townhomes

Another huge pro about Alexandria is the housing market. There are all kinds of different housing options. (1:16)

You can get a condo near the Springfield border on the Alexandria edge for around $300,000 to $350,000. You've got high-rise condos for $400K to $500K. You can find smaller condos for $200K-$250K depending on the building. Townhomes in Old Town can run multi-million dollars. (1:18) I think one of the most expensive homes ever sold in the state of Virginia was actually in Alexandria. So, there is genuine variety here, I've sold million-dollar Old Town townhomes and I've sold $400K condos to first-time buyers in the same year. (1:40)

The current market data tells the story. The median sold price hit $695,000 in February 2026, with a YTD median of $629,000 and a five-year February average of $644,560. Homes are selling at 98.4% of list price in 30 days. Active listings sit around 260, up from 195 a year ago, meaning buyers have slightly more to choose from than they did, but well-priced homes still move fast. The market hasn't dipped, it's just normalized.

Old Town Alexandria: The Charm Factor

One of my favorite pros about Alexandria is Old Town. There is just so much to do there. It's right on the water and you can walk around, there's these cobblestone streets and it is so charming, old-school Americana. (2:16)

You've got nice local restaurants and shops, and you really get a good look at early American history. You can actually see D.C. from afar, you can see National Harbor from afar in Maryland, and it's just a killer location. (2:28)

There are cool things there like the Spite House, which somebody built as this little tiny townhouse so no one would go up and down the alley. There's all kinds of cool stuff there, and it really is a vibrant community, people walking around, biking, outdoor cafes and restaurants. (2:43) Old Town Alexandria has been named one of the top 10 places to visit in the United States by Travel + Leisure several times. (3:02)

The waterfront alone is worth the visit. Waterfront Park, water taxis directly to D.C. and to National Harbor, the Mount Vernon Trail starting just south and running all the way to George Washington's Mount Vernon estate, the Torpedo Factory Art Center on the water, plus the Old Town Farmers' Market, operating continuously since 1753, the oldest in the country.

Major Investments Reshaping Alexandria

This part isn't from the original video, it's what's happened in Alexandria since 2024 that buyers in 2026 should know about. Three major investments are actively reshaping the market.

$1 Billion INOVA Alexandria Hospital

INOVA broke ground in September 2024 on a $1 billion campus on the former Landmark Mall site in Alexandria's West End. This is the largest healthcare investment in Virginia's history. The campus totals 1.1 million square feet, 192 hospital beds (all private rooms), a 111,000 sq ft comprehensive cancer center, an 87,000 sq ft specialty care center, Level II trauma capability, and 24-hour advanced cardiac and neuroscience services.

About 2,000 healthcare workers will be based on site. Main hospital construction runs through 2028, with opening anticipated in late 2028. As of late 2024, excavation was 75% complete and construction cranes were going up. For the West End and Landmark area, this is a major redevelopment catalyst.

Virginia Tech Innovation Campus at Potomac Yard

Virginia Tech's graduate-level tech-focused campus at Potomac Yard is operational, anchoring the broader Potomac Yard redevelopment. The campus partners with Amazon HQ2 and is positioned as Alexandria's tech and innovation hub. The Potomac Yard Metro station (Yellow Line, opened 2023) connects the area directly to D.C.

Amazon HQ2 Spillover

Amazon HQ2's Met Park (Phase 1) is operational in adjacent Arlington with thousands of employees in two 22-story office towers. PenPlace (Phase 2) is paused, Arlington granted Amazon a three-year extension through 2028, but the existing operational footprint already drives substantial demand for housing across Alexandria's market. Even with Phase 2 paused, the economic impact on Alexandria's surrounding submarkets is real and ongoing.

Outdoor Activities and Walkability

Another huge pro is outdoor activities. You can go on the water on the Potomac, walk around Old Town Alexandria, hit the bike trails, or do the Mount Vernon Trail. There's just so much outdoor activity here. (3:54)

You can take a boat ride and watch the July 4th fireworks, or get on a water taxi and go over to D.C. and walk around. (4:09) And here's the big thing, you really don't need a car. There's the Metro, all kinds of bike share programs, and obviously Uber. (4:17) Most places in Northern Virginia outside of Arlington and Alexandria you're going to need to own a car and pay for expensive parking. Here, that's optional. (4:30)

About 30 to 45 minutes from Alexandria you've got the wineries and breweries across Northern Virginia. And of course you have D.C. with all the monuments. There's just so much to do. (4:42)

Young Professionals, Schools, and Family Life

Alexandria is huge for young professionals. Niche.com gave it an A+ overall grade as a city to live in, that's user-based, and it's number 12 in America for the best cities for young professionals to live and buy a home. (5:03) If you're in your 20s, 30s, or early 40s, it's a great place to live. You can walk around, you've got the nightlife, and the lifestyle is actually fun.

The school system is rated B+ on niche.com, which is genuinely high for that platform, user reviews on schools tend to be brutal. (5:24) The area also gets an A+ for nightlife, A for diversity, and A for families. The only category where Alexandria gets a lower grade is housing, niche gives it a C-, and the reason is straightforward: housing is expensive. (5:50)

The Cons of Living in Alexandria

Now let's talk about the cons. Every market has them, and Alexandria's are real even if they're outweighed for most buyers.

Traffic

Trying to get around in Alexandria, there's always some kind of traffic. The Beltway gets backed up, Maryland gets backed up, D.C. gets backed up. There's always some event in Old Town and you're navigating around it. (6:11) Traffic is just part of life in the D.C. area. The Washington D.C. metro currently ranks 9th in the U.S. and 19th globally on the latest INRIX rankings, with the average commuter losing about 70 hours per year sitting in traffic. That's improved from worse rankings in past years, but it's still a real cost-of-living factor.

The flip side: Metro and water taxi access mean a lot of Alexandrians don't drive to commute. That's a genuine lifestyle advantage and it's part of why this market holds its value.

Cost of Living

Cost of living is actually 39% higher than the national average, and housing is 98% higher than the U.S. average. Groceries are 10% higher. (7:07) Parking can also get extremely expensive if you don't have a garage or a place to park. (7:23)

That said, a lot of the jobs in Alexandria are very high-paying. There's a high cost of living, but the income to support it is also here. For most buyers in this market, the math works because the job market does. (7:43)

Tourist Crowds

Especially on weekends, tourist crowds are real. A lot of people come to Mount Vernon to see George Washington's place, then come into Old Town for the local shops and restaurants. (7:50) On the weekends if you want a quiet evening, you're probably not going to get that as much in Alexandria, especially in summer or during the holiday season. (8:11)

Weather Extremes

The weather here can be all over the map. Summers get extremely hot, 90s to 100s in July and August. Winters can get cold but we don't get that much snow. When we do, the roads close and everyone freaks out. (8:34) You do get the four seasons, which is nice, but the extremes are real.

Bottom Line

Alexandria is one of the most established and most desirable real estate markets in the country. The location is irreplaceable, the lifestyle is unique in the DMV, and the demand from federal jobs and the surrounding tech corridor is durable. With major investments like the $1B INOVA hospital and the Virginia Tech Innovation Campus actively reshaping the city, the long-term fundamentals are as strong as anywhere in Northern Virginia.

If you're thinking about buying or selling here, shoot me an email at info@colganteam.com or text me at the number on my contact page. People text me all the time and I respond rather quickly. (9:19)