The View from

Washington, D.C.:
1,000 residents share their perspectives
on life in the Washington, D.C.
metropolitan area, the local economy
and personal finances

May 2016

Methodology

What

An online study among a sample of the general public was

conducted by Koski Research.
Koski Research is neither affiliated with, nor employed by, Charles
Schwab & Co., Inc.

When

The study was fielded March 28th April 8th, 2016.

Who

1,000 from Washington, D.C. aged 21-75 completed the survey.

The sample was drawn from online sample sources.
The geographical area of the sample included all the Maryland,
Virginia, and D.C. counties in the Washington, D.C. Metropolitan
Statistical Area (MSA). Quotas were set so that the sample is
demographically representative of the Washington, D.C. area and
the data has not been weighted.
Note: Unless noted otherwise, Washington, D.C. and the D.C. Area
refer to the Washington, D.C. area as defined above and
Washingtonians refers to the residents of this area.
Note: There were few differences between 2015 and 2016;
therefore, where significant, these differences are shown in call-out
boxes.
Charles Schwab

The Washington,
D.C. Metro Area
Economy

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Six in ten area residents see the Washington, D.C. economy

as better than the U.S. economy as a whole; few say its
worse
Washington, D.C. Economy Comparison to U.S. Economy
All Washington, D.C.

Worse
7%

Same
35%

Better
58%

Q7 If you were to compare the economy of the Washington, D.C. area to the economy of the United States overall, would you say Washington, D.C.s economy is (Base: All
Washington, D.C. = 1,000)
Charles Schwab

Washingtonians are more bullish about their own

economies than about the U.S. economy
View of the Economy
All Washington, D.C.

In Your Neighborhood

In Washington, D.C.

In the United States

23%

36%

Becoming more
prosperous/staying
the same
(NET) = 59%

39%
Becoming more
prosperous/staying
the same
(NET) = 78%

Becoming more
prosperous/staying
the same
(NET) = 81%

36%

53% in 2015

Becoming more
prosperous

Staying about
the same

28% in 2015

45%

39%

Becoming less
prosperous

28%
10%
9%

Q6

11%
11%

Cannot say

13%

How do you view the economy? (Base: All Washington, D.C. = 1,000)
Charles Schwab

According to Washingtonians, top priorities for the new

President are balancing the budget, tax reform and
unemployment
Top Economic Priority for the New President
All Washington, D.C.

Balancing the national budget

22%

Tax reform

13%

The unemployment rate

17% in 2015

10%

Funding for safety net programs, such as Medicaid and welfare

9%

The minimum wage

9%

Reforming social security

9%

Student loan forgiveness

7%

Cost of higher education

7%

Wall Street regulation or reform

6% in 2015

5% in 2015

5%

Promoting retirement savings

3%

Immigration/Illegal immigration

1%

Healthcare/Healthcare reform

1%

Federal spending/Cutting waste-entitlements-defense

1%

Note: no other response mentioned by more than 1%

Q12 In 2017, there will be a new President of the United States. Which of the following is the one economic topic or issue that the new President should be making the biggest
priority? (Base: All Washington, D.C. = 1,000)
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Life in the
Washington, D.C.
Metro Area

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Washingtonians are positive about many aspects of living in

Washington, D.C., but costs of living and housing are
considered high
Washington, D.C. Comparison to Other U.S. Metropolitan Areas
All Washington, D.C.

One of the Best

Arts and culture

Food and dining

13%

79%
75%

One of the Worst

Neither One of the Best nor

One of the Worst

5%

16%

6%

19%

6%

36%

Quality of life

58%

Employment rate

57%

10%

33%

Quality of education

54%

14%

32%

Public transportation

46%

Quality of housing

45%

Infrastructure: roads, highways, etc.

29% in 2015

Effectiveness of local politicians

20%

34%

14%

25%

33%

22%

32%

27% in
2015

Crime rate

15%

37%

Tax rates

15%

39%

Cost of living
Cost of housing

12%
34% in 2015

11%

23% in 2015

31% in
2015

41%
42%
46%
48%

54% in 2015

46%

62%

26%

66%

23%

37% in 2015

29% in 2015
Q5 When you think about the top large metropolitan areas in the U.S., how do you think the Washington, D.C. area compares on each of the issues listed below? For each
characteristic please indicate whether you think Washington, D.C. is One of the Best metropolitan areas or whether it is One of the Worst. (Base: All Washington, D.C. = 1,000)
Charles Schwab

Washingtonians believe it takes more to be considered

financially comfortable or wealthy in Washington, D.C.
compared to the rest of the U.S.
Net Worth Needed to be Financially Comfortable
All Washington, D.C.

$890K in 2015
$720K

$620K

In Washington, D.C.

In the U.S.

$220K

$170K

In Washington, D.C.

In the U.S.

Median

Average

Net Worth Needed to be Wealthy

All Washington, D.C.

$2.7M
$1.8M
$1M

In Washington, D.C. In the U.S.

Average
Q17
Q18
Q18a
Q18b

$690K

In Washington, D.C. In the U.S.

Median

At what level of personal net worth would you say a person in the Washington, D.C. area could be considered financially comfortable?
At what level of personal net worth would you say a person in the Washington, D.C. area could be considered wealthy?
At what level of personal net worth would you say a person living in the rest of the United States could be considered financially comfortable?
At what level of personal net worth would you say a person living in the rest of the United States could be considered wealthy? (Base: All Washington, D.C. = 1,000)

Charles Schwab

If money were no object, about 1 in 5 Washington area

residents would live in Old Town Alexandria; expense is the
primary barrier
Preferred Neighborhood of
Residence

Barriers to Living in Preferred

Neighborhood

All Washington, D.C.

Old Town Alexandria

19%

Bethesda

Q8
Q9

11%

Capitol Hill

7%

Chevy Chase

7%

Rockville

7%

DuPont Circle

6%

Crystal City

6%

Clarendon-Courthouse

3%

Ballston

3%

Eastern Market

2%

Rosslyn

2%

Foggy Bottom

2%

Georgetown

2%

Other

All Washington, D.C.

It's too expensive

65%

The real estate options do not meet

my needs

20%

It's too far from work

19%

It's too far away from family

members / friends

22%

15%

The schools in the area are not high

quality

5%

There's too much crime in the area

5%

Other

6%

Nothing - I currently live there

14%

If money were no object, where in the Washington, D.C. area would you like to live? (Base: All Washington, D.C. = 1,000)
What is preventing you from living in (preferred place)? (Base: All Washington, D.C. = 1,000)
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Most Washingtonians are homeowners; non-owners say

inadequate income, cost of homes in their desired
neighborhood or debt are barriers to home ownership
Home Ownership

All Washington, D.C.

Factors Preventing Home Ownership

Among those who dont own
Im not making enough money to save
for the purchase of a home

45%

I cant afford a home in the

neighborhood I want to live in

38%
47% in 2015

62%

37%

Im still paying off debt

Own home

Im not interested in purchasing a

home in the near-term

Rent home

28%

Im currently saving for other things

besides a home

19%

It is more financially attractive to rent

than own a home in D.C.

19%

Other
Have other
arrangement

10%

23%

Nothing would prevent me from

purchasing a home

4%
9%

Q28 Do you currently... (Base: All Washington, D.C. = 1,000)

Q29 Which of the following would prevent you from purchasing a home? (Base: Those who dont own = 383)
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In retirement, one-quarter of employed Washingtonians

plan to stay in their current neighborhoods; one-quarter
want to move out of the area
Planned Retirement Residence

Among employed Washington, D.C.

Don't plan to retire

3%

Want to stay in same

neighborhood in
Washington, D.C. area

25%

Undecided

38%

8%

Want to move to a
different neighborhood in
Washington, D.C. area

26%
Want to move outside of
Washington, D.C. area

Q3 When you think about retirement, what are your plans for where you will live? (Base: Employed Washington, D.C. = 674)
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Three-fourths or more agree that quality of life, education

and jobs are key strengths of the area; but most dislike
being there during an election year
Agreement with Statements About Washington, D.C.
All Washington, D.C.

Agree

Disagree

Im happy with my quality of life in Washington, D.C.

79%

21%

Children can get a good education in the public schools in my area

78%

22%

There are plenty of job opportunities in the D.C. area

77%

23%

72%

I feel good about the property values in my neighborhood

28%

67%

Crime is hurting the economy in the Washington, D.C. area

33%

57% in 2015

64%

The Washington, D.C. area has high quality public transportation

36%

70% in 2015

49%

Tax rates in my area are reasonable

51%

45% in 2015
Overall cost of living in my area is reasonable

42%

58%

Politicians do a good job making the local economy stronger

40%

60%

30% in 2015
I like Washington, D.C. more during an election year

31%

69%

Q13 Please indicate your level of agreement or disagreement with each of the statements below. (Base: All Washington, D.C. = 1,000)
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13

Washington, D.C. gets high marks as a place that welcomes

diversity and for young people; not so much for the middle
class or retirees
How Residents Grade Washington, D.C.
All Washington, D.C.

Grade

Washington, D.C. is a place

Excellent

That welcomes diversity

For young professionals
Where I can achieve my career ambitions

Fail

A/B (Net)

44%

37%

15% 3% 1%

81%

42%

39%

14% 4% 1%

81%

32%

Where a child can receive a good education

38%

30%

22%

38%

5%

3%

70%

22%

6%

4%

68%

For innovation

23%

42%

26%

6%

3%

65%

That is business friendly for large companies located here

23%

42%

26%

6%

3%

65%

Where I can make a difference on national policies

21%

To raise a family

20%

38%

For entrepreneurs - those seeking to start and own a business in

the area

19%

40%

For the middle class

To spend your retirement years

30%

13%
11%

29%
27%
29%

33%
22%

13%

35%
30%

10% 5%
9%
14%

20%

51%

8%

17%

3%
5%

58%
59%
46%
33%

Q16 How would you grade the greater Washington, D.C. area on each of the following? (Base: All Washington, D.C. = 1,000)
Charles Schwab

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Residents of Washington, D.C. more often than others see

the area as welcoming diversity, offering job and career
opportunities and a growing economy; but less on patriotism
How Washington is Seen by Washingtonians and Others
All Washington, D.C.

vs.

How Washingtonians
See Washington

Tourist destination

How Washingtonians Think Others

See Washington

76%

The political capital of the world

75%

67%

Theaters, operas, museums

68%

65%

Lobbyists

57%

60%

Large number of military personnel

59%

56%

A place that welcomes diversity

54%

Place for good job and career opportunities

54%

50%
36%
40%

Net
Difference
+1
-1
+8
+1

+6
+18
+14

Poorly equipped to handle extreme weather

40%

38%

+2

Large homeless population

40%

37%

+3

Diehard sports fans

37%

Patriotism

35%

Growing economy

34%

Poor infrastructure

24%

Supports small businesses

16%

High quality of life at a reasonable cost

15%

Committed to environment by living green

14%
6%

+9

45%

26%

A tech hub

Affordable real estate

28%

-10

23%

+11

23%

+3

16%
11%
13%

+8
+5
+2

8%

+6

7%

-1

Q32a The Washington, D.C. Area is well known for a variety of reasons. Which of the following do you believe describe the D.C. Area?
Q32b People from other places also have impressions of the Washington, D.C. Area. Which of the following do you think people from other places believe are descriptive of the D.C.
Area? (Base: All Washington, D.C. = 1,000)
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15

Personal
Finances in the
Washington, D.C.
Metro Area

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16

More than half of Washingtonians say local issues

(especially cost of living) have the greatest impact on their
personal financial decisions
Impact on Making Personal Financial Decisions
All Washington, D.C.

40%

Local area cost of living

7%
5%
4%

Local area housing market

Local area employment rate
Local area tax rates
Local political environment

1%
15%

U.S. economic outlook

8%

U.S. stock market volatility

U.S. unemployment rate
U.S. interest rate environment

5%

Global economic outlook

1%

Global political instability

Global events
(net) = 6%

2%

Amount of money/Personal finances/Income

Other mentions

U.S. events
(net) = 33%

4%
3%
3%

Outcome of the 2016 U.S. presidential election

My personal-family job stability/Job(s) (Unspecified)

Local events
(net) = 57%

*
1%

* = < 0.5%
Q10 Which of the following factors or events have the greatest impact on how you make your personal financial decisions? (Base: All Washington, D.C. = 1,000)
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17

Confidence in achieving financial goals is high; however, a

plurality says living in Washington, D.C. hurts their ability to
reach their financial goals
Confidence in Ability to Achieve
Financial Goals
All Washington, D.C.

25%

Confident
(net)=72%

Effect of Living in Washington, D.C. on

Reaching Financial Goals
All Washington, D.C.

36% among those who use

an FA vs. 21% among
those who dont

Very confident

Somewhat
confident
47%

24%

44%

21%
7%

Living in
Washington, D.C.
hurts
Doesn't affect my
ability to reach my
financial goals

Not very confident

Not
Confident
(net)=28%

Living in
Washington, D.C.
helps

21%

Not at all confident

Uncertain

11%

Q20 How confident do you feel that you will be able to reach your financial goals?
Q21 Would you say that living in Washington, D.C. helps or hurts your ability to reach your financial goals? (Base: All Washington, D.C. = 1,000)
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18

Washingtonians say they are more tech savvy or financially

savvy than politically savvy, and they tend to be somewhat
more savers than investors
Financially Savvy vs. Tech Savvy vs.
Politically Savvy
All Washington, D.C.

Politically
savvy
22%

Tech savvy
43%

Washingtonians Approach to
Building Wealth
All Washington, D.C.

Not
building wealth
right now

More of
a saver

22%

24%
More of
an investor

15%
Financially
savvy
35%

Committed
to both

39%
All Washington, D.C.

All Washington, D.C.

Q18c Would you consider yourself more financially savvy, politically savvy or tech savvy?
Q19 How would you describe your approach to building wealth? (Base: All Washington, D.C. = 1,000)
Charles Schwab

19

In terms of planning for the future, seven in ten

Washingtonians have a financial plan, but only one in four
have it in writing
Financial Planning

All Washington, D.C.

Have a plan in
writing
24%

Don't have a
plan
29%

Have a financial
plan (NET) = 71%

Have a plan
but not written
47%

Q23 Do you currently have a financial plan? (Base: All Washington, D.C. = 1,000)
Charles Schwab

20

Washingtonians are saving primarily for retirement and

emergencies, but the areas cost of living and paying off
debt are the top barriers
Top Three Saving/Investing Priorities
All Washington, D.C.

Retirement

62%

57% in 2015
Emergency funds

50%

Vacation funds

29%

Purchasing a home

24%

College costs for my children

22%

Medical expenses for family members

20%

Obstacles Preventing Saving/Investing

All Washington, D.C.

Cost of living in Washington, D.C. is

too high
I'm paying off other debt

Other mentions

7%

I'm saving but I don't have a specific goal

I am not saving for anything currently

7%

14%

I find the process of investing

overwhelming

11%

I'm paying for my children to go to

school

10%

Underemployed/Unemployed/Not
working

22%

17%

I am not doing a good job budgeting

my money

I do not know how to get the financial

advice I need

1%

34%

I'm still paying off my student loans

Getting financial advice is too costly

Starting my own business

46%

Other mentions
Nothing is preventing me from saving
for my financial goals

6% in 2015

9%
7%
2%
5%
23%

Q26 Which of the following are your top three saving and investing priorities?
Q27 Which of the following obstacles prevent you from saving or investing toward your financial goals? (Base: All Washington, D.C. = 1,000)
Charles Schwab

21

Most Washingtonians say charitable giving plays a small

role or no role in their financial planning
Role of Charitable Giving in Financial Planning
All Washington, D.C.

Charitable giving plays a large role Its part of my financial plan because
I like to support causes that are important to me and because I can lower
my tax bill

11%
18%

Charitable giving plays a medium-sized role I set aside a certain

amount of money each year for charitable giving, but don't really think
about tax benefits

Charitable giving plays a small role I contribute if I can, but don't really
plan ahead for it

46%

Charitable giving plays no role I don't donate much

40%

25%

Q31 How big of a role does charitable giving play in your financial planning? (Base: All Washington, D.C. = 1,000)
Charles Schwab

22

Survey
Demographics

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23

Demographics
All Washington,
D.C.
(n=1,000)

All Washington, D.C.

(n=1,000)
Gender
Male
Female
Generation
Millennials (21-33)
Gen X (34-49)
Boomers (50-68)
Matures (Over 68)
Mean age
Children
Have children (Net)
Under age 18
Over age 18
Both over and under age 18
No children
Racial Background
White/Caucasian
African American/Black
Asian
Hispanic or Latino
Other
Prefer not to answer

Employment Status
49%
51%
27%
29%
36%
9%
46
59%
26%
29%
4%
41%
71%
16%
8%
4%
3%
3%

Employed (Net)

67%

Full-time

54%

Part-time

13%

Unemployed, looking for work

6%

Homemaker or student, not

looking for work

10%

Retired, semi-retired

17%

Political Orientation
Republican

20%

Democrat

46%

Independent

24%

None of these

5%

Prefer not to say

5%

Charles Schwab

24

Demographics
All Washington, D.C.
(n=1,000)

All Washington, D.C.

(n=1,000)

Total Assets

2015 Household Income

<$25K

8%

<$25K

22%

$25K to $49.9K

13%

$25K to $99.9K

19%

$50K to $74.9K

18%

$100K to $249.9K

11%

$75K to $99.9K

18%

$250K to $499.9K

12%

$100K or more

35%

$500K or more

20%

Prefer not to answer

8%

Prefer not to answer

16%

Median

$90K

Median

$76K

Charles Schwab

25

Disclosures
The Charles Schwab Corporation provides a full range of securities brokerage,
banking, money management and financial advisory services through its
operating subsidiaries. Its broker-dealer subsidiary, Charles Schwab & Co., Inc.
(Schwab), member SIPC, offers investment services and products. Its banking
subsidiary, Charles Schwab Bank (member FDIC and an equal housing lender),
provides deposit and lending services.

Brokerage Products: Not FDIC Insured No Bank Guarantee May Lose Value.
(0616-2316)

Charles Schwab

26