DC Highest Earning Metro Area in America
The Washington DC area has the nation’s highest incomes, Richard Florida reports.
According to a new Regional Income Earnings Index developed by the Martin Prosperity Institute, Greater Washington, D.C. is the nation’s metropolitan region with the highest income. The index measures income trends across all 342 of America’s metro regions.
San Jose (in California’s Silicon Valley) and Stamford, Connecticut, tie for second place. San Francisco and Boston round out the top five. Surprisingly, Greater New York ranks 16th on the MPI Affluence Index, behind Seattle, Boulder, Minneapolis-St. Paul, and Greater Baltimore. Two Alaska regions score in the top 20—Anchorage in seventh place and Fairbanks in 19th. Massachusetts and Minnesota each have two regions in the top 20 as well.
High-income regions tend to have populations that are highly educated and skilled—what economists refer to as higher levels of human capital. Regions with more knowledge-based, professional, and creative jobs have higher incomes on average, as do regions with high concentrations of high-tech industries
All of that is true of DC. But there is, of course, one additional factor that sets it apart from the others: it also happens to be the seat of government and thus a magnet for rent-seeking behavior.