Washington's Real Estate Market and Economy Built Upon Educated Workforce
Washington's metro residents rate first in the nation: 50% of them have a bachelor's degree or higher. By generating higher incomes and, in turn, retail spending, higher education levels allow residents to create a continuous cycle that feeds the economy and boosts the commercial real estate market, Transwestern managing research director Elizabeth Norton says.
In fact, the Washington metro area takes the top spot for income and retail spending indicators, supporting demand for retail and flex-industrial properties. According to a survey by the Washington Metropolitan Council of Governments, the educated workforce also draws companies to the DC area, which boosts demand for offices.
According to Enrico Moretti's The New Geography of Jobs, the influx of companies causes a multiplier effect. For example, for every job added to the tech sector—which has the highest multiplier due to high pay—five additional jobs are created for fields such as medical, retail and others. The new jobs not only maintain the talent already in the market, but attract even more educated job seekers, forming a growth cycle.