Like the rest of Northern Virginia, as well as southern Maryland, Alexandria is shaped by its proximity to the nation's capital. It is largely populated by professionals working for the federal civil service, the U.S. military or for one of the many private companies that contract out services to the government. The latter are known locally as beltway bandits, after the Capital Beltway, a ring road that circles Washington. Alexandria's largest employer by far is the U.S. Department of Defense -- since The Pentagon is in neighboring Arlington County -- and two of its four largest private employers are the Institute for Defense Analysis and the Center for Naval Analysis, according to city statistics.

The historic center of Alexandria, known as Old Town, is a major draw for tourists and those seeking nightlife without crossing the Potomac River. Like Old Town, most Alexandria neighborhoods are wealthy, high-status suburbs. In 2002, an assessed-value study of homes and condominiums found that about 40 percent were in the highest bracket, worth $250,000 or more.