Fairfax County Ranks In Top 10 For Purchasing Power In Virginia

McLean VA

08 October, 2021

3:07 PM

Description

FAIRFAX COUNTY, VA — Northern Virginia's localities may have the higher cost of living, but purchasing power is strong based on the median income, a new SmartAsset study concludes. SmartAsset, a financial information website, put together a ranking on purchasing power for 2021. The study looks at how far dollars go based on the cost of living and median income. Two cost of living metrics were combined: one for the base cost of living in a location and the other examining spending typical for someone making the median income. The cost of living metrics were based on one adult with no dependents. A weighted average was then calculated based on how close the median income was to minimum livable income in the locality. Localities where median income most exceeded the cost of living were ranked highest. Fairfax County came in ninth based on a $70,082 cost of living and median income of $124,831. Loudoun County ranked first in the state with a $74,969 cost of living and $142,299 median income. Falls Church City was seventh with a $71,493 cost of living and $127,610 median income. The study notes that purchasing power will vary by income and location due to the disparities of income. Based on data from the U.S. Census 2019 American Community Survey, 16.8 percent of households in Fairfax County make $49,999 or less. The highest percentage of households — 26.8 percent — make $200,000 or more. While Fairfax County's purchasing power ranks high, it has one of the highest costs of living in the state. Another 2021 ranking from SmartAsset found Fairfax County had the 130th lowest cost of living in Virginia. The $70,082 cost of living is well above the state average of $41,266. For the median household income ranking, Fairfax County is third with $124,831. The top 10 is largely from Northern Virginia and surrounding areas, with the exception of Poquoson City in the Tidewater region at 10th. Median household income in Virginia is $74,222. See the full SmartAsset study here.