WASHINGTON — The D.C. metropolitan area is doing pretty well when it comes to wealth. However, the region has been growing at a relatively slow pace when compared to other large metro areas in the United States.
According to a new report from the Stephen S. Fuller Institute at George Mason University, the area’s wealth grew just 1 percent between 2008 and 2015.
That is the slowest level of growth among the nation’s 15 largest metro areas, except Miami.
“In part, it’s because we have a fairly high income level here, and so there’s less to grow,” said Jeannette Chapman, an economic researcher who authored the report.
The D.C. area ranks fourth wealthiest among the largest metros, behind San Francisco, Boston and Seattle. According to the report, D.C. was ranked third from 2008 through 2012, but it dropped steeply in 2013 and has had a difficult time climbing back.
Aside from slower income growth, high cost of living is also holding the area’s wealth back.
“Our cost of living has increased faster than the national average,” Chapman said.
Chapman’s report, based on figures from the U.S. Bureau of Economic Analysis, shows price levels in the D.C. metro area are more than 19 percent higher than the national average. Among the largest metro areas, only two others have higher prices. They include New York and San Francisco.
Around the District, rent prices are especially significant.
Rents in the D.C. region are more than 69 percent higher than the national average, according to the report. They are second highest among the largest metro areas, only behind San Francisco.
“Price growth is harder to shift. It’s a little stickier,” said Chapman. “Price growth tends to continue even when incomes flatten out.”
Economic researchers expect wealth growth around the District to continue at a relatively slow pace, saying the region will likely experience a slowdown in economic growth that will result in slower growth in incomes.
