Albany, Montgomery, Rensselaer, Saratoga, Schenectady and Schoharie Counties

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This is a diverse metro area, for its size. Albany and Schenectady Counties are relatively densely populated, while Rensselaer (to the east) and Saratoga (to the north) are more suburban, containing both bedroom communities and some agriculture. Rural Schoharie and Montgomery counties (to the west) are less densely populated. While Saratoga County has seen fairly brisk population growth over the past decade (and the prior one), the rest of the metro area has seen little change in population overall.

Albany is New York State's most affluent metro area outside the New York City metropolitan region. Median household income was roughly $43,000 in 1999—slightly above the national median, and on par with the statewide figure (see table below).

The population's educational attainment profile is also well above average: 28 percent of adults hold a college degree—slightly above the NY State average and well above the nationwide average. However, within the metro area there is wide variation. Both income and educational attainment are well above average in Albany, Saratoga, and Schenectady, but well below average in the rural Schoharie and Montgomery counties.

The area's dominant industry is state government—a feature which has helped cushion the area from downturns, such as the recession earlier this decade. Also, General Electric used to be headquartered in Schenectady and is still the largest employer in that county. The area still has a fairly solid high-tech industry base, and this has been a source of job growth as well. Albany is now considered a leader in the development of nano-technology.

After holding up better than almost any other metro area during the last economic downturn, the Albany area has also been a top performer in the subsequent expansion, with both total and private-sector employment growing fairly briskly and surpassing their pre-recession peaks by 2004.

In 2005 and 2006, employment has grown at a much more modest rate of about 0.5 percent. In contrast, house price appreciation has been among the strongest in not only New York State but the nation overall: the median selling price for existing homes expanded at a remarkable 15 percent rate in both 2004 and 2005 and appears to have decelerated only modestly in 2006. As of the first half of 2006, it ranged from a high of $250,000 in Saratoga to $86,000 in rural Montgomery County.