Rise of an Imperial City, Cont’d

From time to time my colleague David Boaz posts about the many ongoing ways in which the economy of Washington, D.C. continues to outpace that of the rest of the country, thanks to a well-paid and layoff-resistant workforce of federal employees and contractors, a thriving lobbying sector, and so forth. Thus David noted this week that the Washington, D.C. metro area has now attained the highest family median income of any major city, and last month that, according to Census Bureau figures analyzed by Newsweek, “seven of the 10 richest counties in America, including the top three, are in the Washington area.” I thought I’d add three more data points to this picture:

  • Even as most of the country remains mired in serious housing recession, the capital has bounced back smartly: “The District claims the top ranking on the agency’s state-by-state list of annual price appreciation, with 5.29 percent growth since the third quarter of last year,” compared with a 3.2 percent decline nationally. Virginia and Maryland did less well, but most of both states’ population lives outside the D.C. orbit. [Washington Post]
  • Commercial rents in downtown Washington have likewise defied the steep national slump, as the federal government expands its demand for office space: “The rise has been so dramatic that for the first time in five years, the average asking rent in D.C. is higher than in New York City, according to CoStar and a new report of third-quarter activity by commercial real estate firm Cassidy Turley…. ‘The federal government has created a smooth but slow rise in rents [in D.C.],’” noted one real estate economist. [Washington Post again]
  • A business boom – in journalism? Even as veteran reporters elsewhere scrounge for work, talent and money continue to pour into Washington’s specialized news-gathering business, most particularly the sorts of newsletters that (for a subscription price in the thousands of dollars) will bring you fresh and fine-grained news of the doings of federal regulatory agencies in fields like energy, pharmaceuticals, securities and telecommunications. “[B]y dint of its regulatory powers, its executive orders, its judicial decisions, its ability to conjure money out of thin air, and its budget-making authority, Washington dictates who can do business and how,” writes Jack Shafer. “… Although $5,700 for a subscription to Bloomberg Government might sound steep to you, it’s chump change for businessmen who become the first in their cohort to read Line 125 in a pending bit of legislation and can place a bet on – or against – it in the market.” [Slate]