Cashing in on capital city real estate

Investment qualities that make these areas good buys

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

Anyone lucky enough to be living in or near the national capitals in the U.S. or Canada over the last four years lived through something few other homeowners in those countries experienced: home-price stability. Sure, in certain sections of city metros surrounding national capitals, home values softened, but for the most part homeowners saw little price deflation. That's because capital cities boast a very stable workforce of government bureaucrats and a panoply of private-sector consultants, lobbyists and contractors that feed the federal bureaucracies. In addition, in recent years, a number of companies have shifted major operations to capital city areas just to be closer to their government paymasters. "The largest movement of people occurs with the shadow government, which relates to government contractors," said Pauline Thompson, president and founder of Tysons Realty Inc., in the Washington, D.C., suburb of Tyson's Corner, Va."Northrop Grumman, Hilton an...