Annandale's economy is highly integrated with the broader Washington, D.C., and Fairfax County economies. A significant portion of its residents commute to nearby employment hubs such as Arlington, Tysons, Alexandria, and downtown Washington, D.C.
Locally, the economy is anchored by retail, commercial services, and hospitality. Little River Turnpike serves as the primary commercial artery, featuring shopping centers, professional offices, and one of the highest concentrations of ethnic dining in the state. While the cost of living in Annandale is higher than the national average—driven largely by regional housing costs—the median household income remains robust, typically hovering over $90,000 to $100,000 annually. Future economic development is focused on revitalizing older commercial strip malls into mixed-use, walkable community spaces.