Residents Of Loudoun County Enjoy Most Purchasing Power In Virginia: Study

LOUDOUN COUNTY, VA — Residents of Loudoun County have the most purchasing power in Virginia, more than residents of Falls Church and Fairfax County, the other Northern Virginia jurisdictions to make the top 10 places in the state with a favorable cost of living, according to a new study by SmartAsset.

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.

The Virginia counties and cities where the median income most exceeds the cost of living ranked the highest in the SmartAsset study.

For Loudoun County, SmartAsset calculated the cost of living at $74,969 and the median income at $142,299, giving the county a purchasing power index rating of 73.50. While it ranked first in Virginia, Loudoun County ranked 66th in the nation for favorable cost of living.

The city of Falls Church ranked seventh in Virginia (181st in the nation) in purchasing power, while Fairfax County ranked ninth (186th in the nation), according to the study.

In Falls Church, the cost of living is $71,493 compared to a median income of $127,610, giving the city a purchasing power index of 66.21. Fairfax County has a cost of living of $70,082 and a median income of $124,831, giving the county a value of 65.97 on the purchasing power index.

The study notes that purchasing power will vary by income and location due to the disparities of income.

Huge numbers of people cannot afford to live in any of these jurisdictions or any parts of Northern Virginia due to the high cost of living, forcing them into longer commutes or moving away entirely from D.C.’s Northern Virginia suburbs.

For years, Loudoun County has been ranked as one of the wealthiest counties in the nation.

The county has seen its population soar over the past 20 years. Its proximity to D.C. and the Dulles high-tech corridor has attracted families that want to own a big house with a large yard. "A commuter county located 25 miles west of Washington, D.C. and the Pentagon, Loudoun County residents have the option of commuting into the city or taking advantage of the impressive job market growth at home," Forbes wrote recently about the county.

A 2020 study by financial news and opinion site 24/7 Wall St. found that a typical household in Loudoun County made about $136,268, slightly lower than the median income for the county in the new SmartAsset study.

After Loudoun County, the top five richest counties in the country were Howard County, Maryland ($117,730); Santa Clara County, California ($116,178); Douglas County, Colorado ($115,314); and Los Alamos County, New Mexico ($115,248), according to the 24/7 Wall St. study.

See the full SmartAsset study here.