April 5, 2006


Per Capita Personal Income in DC rose by 7.5 percent from 2004 to 2005, said the Commerce Dept. This increase from $51,155 to $54,985 is greater than that of any state.

What's behind the jump? The WaPo points to IRS and Census data indicating that "nationally the incomes of the very rich are rising more rapidly than those of most Americans." DC has "a higher proportion of the very rich" compared with most states, so the figure should come as no surprise, the WaPo declares. Virginia income grew from $36.2K to $38.4K and Maryland income grew from $39.6K to $41.8K

Let's not forget too that there has been lots of condo construction in DC with richer and richer people moving in as prices rise. Empty nesters say: "goodbye Reston, hello NOMA or Capitol Hill." Have the incomes of DC residents increased or are there more affluent DC residents?

Whatever the reason, the higher incomes should help insulate DC somewhat from downward pressure on real estate. If residents have more dough, they have more to spend on condos and townhouses, giving DC a relatively soft landing.

pix by joe calhoun

No comments: