Arlington's first "Missing Middle" homes have sold for about $1.6 million each. The two clearest sales are side-by-side semidetached homes on N. Troy Street in North Highlands. ARLnow reported that the four-bedroom unit sold in December 2025 for $1,615,000 and the five-bedroom unit sold in March 2026 for $1,610,000 (ARLnow, April 2026).
Arlington's median sale price for all property types in July 2026 was $823,000 (ARLnow, August 2026). The Troy Street units sold for close to double that. If you have been reading about the Expanded Housing Option, or EHO, as Arlington's path to more attainable housing, that gap can look like the policy failed. A better reading is that EHO homes are priced against a different home: the brand-new detached house that would otherwise go up on the same lot. Against that home, they are a real discount. Against an older house or a condo, they are not.
The Comparison Arlington County Makes Itself
The County's EHO Annual Data Report, published in March 2026 with data through December 31, 2025, uses new construction as its yardstick. It describes the first EHO sale, a four-bedroom semidetached home in ZIP 22201, as 45% below the average price of a newly built single detached home in that ZIP. It also calls it the lowest sale price for any new construction in 22201 since 2020.
The same report puts 2026 assessed values for EHO units side by side with assessed values for new detached homes:
| Home type, per Arlington County | Figure | Basis |
|---|---|---|
| First EHO sale, 4BR semidetached, 22201 | $1.6 million | Sale, through Dec. 2025 |
| Completed, unsold EHO units | $966,800 in 22206 to $1.4 million in 22201 | 2026 assessment |
| Newly built single detached homes | $1.3 million to $4.3 million, averaging $2.4 million | 2026 assessment |
| Arlington, all property types | $823,000 median | Sales, July 2026 |
Both EHO figures fall within or near the range for new detached homes. The countywide median sits well below all three. An EHO unit is a new home on a single-family street, with new systems and a new roof, sold on a lot where a $2 million-plus house was the alternative. Its price follows from that.
Why the Price Lands Where It Does
Land is the main reason. An EHO project usually starts with a builder buying a lot in a neighborhood that was zoned only for detached houses. The County found that 79% of approved EHO permits fall within its transit-proximity areas, spread across 25 civic associations. Those are lots a custom-home builder would also bid on. When two or six units share the land cost, each unit's price drops. It can't drop below what that lot could earn as one large new house without the builder losing money compared with the simpler choice.
The detached market sets that floor, and detached homes are scarce. In August 2026, the Northern Virginia Association of Realtors reported that active detached listings across Northern Virginia fell 8.5% from a year earlier, while attached listings rose 39.7%. Commenting on July 2026 data, NVAR CEO Ryan McLaughlin told ARLnow that buyers were finding more choices among condos and attached homes "while the supply of single-family detached homes remains very limited" (ARLnow, August 2026). NVAR's June 2026 forecast for Arlington follows the same pattern, projecting 2026 median-price gains of 3.9% for detached homes, 2.3% for townhomes and 2.2% for condos.
So the segment EHO units are priced against is the tightest part of the market, and the segments that look cheaper on paper are the ones where inventory is growing.
Fifteen Permits That Turned Into Houses
An EHO permit gives a builder an option, and many haven't used it. Through December 2025, the County counted 47 properties with EHO zoning permits. Three projects were finished and five were under construction. Fifteen permit holders went on to build single detached houses on those lots instead. In the County's count, those switches account for 57 approved EHO units that won't be built.
For a builder, the detached house is the safer bet. Its buyers and resale comps are well established, and its zoning was never challenged in court. The County's report notes that its 30-month window included roughly a year when the regulations had been ruled void and permitting stopped. When a project's legal footing can change mid-build, the fallback looks appealing.
Projects are still moving forward. Since the 2025 appeals rulings, the County has approved nine more EHO projects with 40 units in total, and 59 projects appear on its permitting dashboard. ARLnow cautioned that some of those have also turned into single-family developments (ARLnow, April 2026). The developer whose appeal put EHO back on the books told ARLnow in August that he hasn't taken on any new EHO projects "because it's still all up in the air" (ARLnow, August 2026).
A Capped Supply With an Open Court Case
Even if every permit were built, EHO could only add a limited number of homes. The County's EHO FAQ caps permits at 58 per calendar year: 7 in R-5, 30 in R-6, and 21 across R-8, R-10 and R-20 combined. The caps last until June 30, 2028. At the County Board's July 21, 2026 meeting, Board member Susan Cunningham proposed starting a formal process to address those expiring caps. She said she expected a conversation "in the next four to 12 months," and acknowledged at the meeting that the Board would probably not proceed with it that day (ARLnow, July 2026).
The legal status has changed several times:
- September 27, 2024: The Arlington Circuit Court struck down the EHO zoning changes.
- June 24, 2025: The Virginia Court of Appeals reversed that ruling on procedural grounds. It found that EHO permit holders were indispensable parties who should have had the chance to join the case, and it did not rule on the ordinance itself (ARLnow, June 2025).
- September 5, 2025: The appeals court reinstated that reversal, and the County resumed accepting EHO applications on October 1, 2025.
- May 19, 2026: The Virginia Supreme Court agreed to review the procedural ruling. A County spokesperson told ARLnow the order "did not halt EHO development" and that the County will keep following the 2023 ordinance (ARLnow, May 2026).
ARLnow reported in August that oral hearings were expected this fall but gave no date. Only the Circuit Court has ruled on the ordinance itself. The current appeal concerns who must be part of the case.
The Next Price Point to Watch Is in Virginia Square
The Troy Street homes are four- and five-bedroom semidetached houses, so they're priced much like detached homes. A six-unit building at 3802 14th Street N. in Virginia Square would test something different. Greater Greater Washington describes its design as five three-bedroom homes plus one one-bedroom unit. County permit records show an April 27, 2026 completion date for the new-construction permit. County property records show no sale of the parcel since 2021.
A GGWash contributor estimated the three-bedroom units could list from the mid-$800,000s to the high-$900,000s. That is an estimate, not an asking price. If real prices land near that range, it would be the first evidence that splitting a lot six ways can bring a new Arlington home close to the countywide median. The County's lowest EHO assessment so far, $966,800 in 22206, suggests the gap could narrow as more units share a lot.
What This Means When You're Comparing Homes
For a buyer, these points apply right now:
- Use the right comps. An EHO unit is best compared with new detached homes in the same ZIP and with recent EHO sales. A 1960s colonial down the street is a different product.
- Expect few choices. The 58-permit annual cap, permits switching to detached houses, and the pending court case all keep the pipeline small. Through 2025, only one EHO unit had sold, by the County's count.
- Ask how many units share the lot. A duplex unit and a six-plex unit can both be called Missing Middle and still sit in very different price ranges.
- Ask about the permit and building status. A completed home has a different risk profile from one still under construction while the litigation is open.
A Few Common Questions
Does the Supreme Court case put completed EHO homes at risk? The May 2026 order did not stop EHO development, and the appeal is about procedure, not the ordinance's merits. A buyer with questions about how a future ruling could affect a specific property can get an answer from a real estate attorney.
Are EHO homes cheaper than other Arlington homes? They are cheaper than new detached homes, according to the County's 2025 sales data and 2026 assessments. They have sold well above the July 2026 countywide median of $823,000.
How many EHO homes could come to market each year? Under the current rules, no more than 58 EHO permits can be issued per calendar year through June 30, 2028, and some permits end up as single detached houses.
If you're weighing an EHO home against new or older single-family homes in Arlington, Teresa Burton can pull the new-construction comps for that ZIP and walk you through the permit history on any address you're considering. Already own on one of these streets? Request a free home valuation to see how recent new construction nearby affects your home's value.
This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.
