In the D.C. luxury housing market, $2 million is the new $1 million

WMATA Aerial

As we’ve discussed many times Washington DC metro is by far the wealthiest metro area in the United States. There are pockets which are wealthier, parts of Manhattan, parts of San Francisco, but overall Washington has the most wealth and the broadest wealth. This is because over the last 20 years the cronies at various levels have amassed more of the country’s dough in the leafy suburbs of Northern Virginia and Southern Maryland. It is a land of government employees (who average total compensation of over $120,000 per year), lobbyists, defense contractors, etc., and it is a world I know too well. It’s why I left.

But many people want to stay close to the taxpayer teat and so they pay a premium to stick around, hack through endless traffic, and generally suffer the soul crushing urban and suburbaness of it all.

One other thing about DC. People live to “work.” They don’t do anything else other than shop. It is in many ways a boring town, conservative in the worst sense of the word and also liberal in the worst sense of that word. Count yourself lucky if you don’t have to live there. The compensation isn’t really worth it.

(From The Washington Post)

Eighteen percent of all single-family homes sold so far this year have had prices exceeding $1 million, according to data from District, Measured, a blog from the city’s Office of the Chief Financial Officer. In 2001, only 3 percent of homes sold in the District went for more than $1 million. In 2006, sales of $1 million homes broke the 10-percent threshold.

Given that a $1 million home is now rather commonplace in the District, Steven Giachetti, of the CFO’s office, suggests raising the bar of what constitutes as luxury real estate in the city.

Click here for the article.