Washington D.C is the 2nd Best City to Accumulate Wealth in the United States

According to a study carried out by Bankrate.com, a financial information website, Washington D.C is the second biggest city to build wealth in the U.S out of the nation’s 18 largest metropolitans.

Houston is the best place to create wealth in the United States based on factors such as income levels, housing market and accessibility to financial services as well as job creation.

The report says that D.C has the highest potential of savable income after deducting taxes and household expenses. However, the city came in last as far as residents’ debt levels are concerned. The report further adds that Washington D.C has hefty amounts of savable income and a vibrant job market to thank for its high ranking. Regrettably, the city residents have to grapple with large amounts of consumer debt, a factor that contributed to the nation’s capital coming in at number two.

D.C. ranks fourth and seventh respectively in regards to labor and housing markets.

According to Christian Weller, an economist at the University of Massachusetts Boston, an area with low employment rates is characterized by competition among employers who offer attractive packages and retirement plans to their prospective employees. Weller adds that most companies do not compete on a regional level or city level for talent.

So, What Makes a City Ideal for Building Wealth?

According to Bankrate.com, a number of factors come into play when determining which city is the best for accumulating wealth. The ranking involves consulting with experts on factors that should be considered in a conversation about wealth. While there are innumerable large and small contributors, these are the most influential.

After tax, Savable Income – This is what remains after taxes and household expenses. In other words, it is what you could deposit in a savings account.

The Job Market – Are potential employees able to get jobs at competitive rates?

Human Capital – Can the residents of the metro find educational openings to advance their career for a better pay in the future.

Accessibility to Financial Services – Are the residents able to access financial products to help make them make investments, save and borrow efficiently?

The Local Housing Market – Owning a home is essential and one of the most important steps toward creating wealth for most Americans. If a particular area’s local housing market is struggling, it becomes harder for the prospective buyers to secure mortgages and for homeowners to accumulate wealth and build wealth.

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