New York's Capital District, also commonly referred to as the Capital Region, is the area in eastern New York that refers to the metropolitan area surrounding Albany, the state capital.he Capital District is New York's most affluent metro area outside of the New York City metropolitan area. Median household income was roughly $73,000 in 1999 and its educational attainment profile, with 28 percent of adults having a college degree, is slightly above state average and well-above the national average.