Washington, D.C.—The nation’s capital is experiencing a significant shift in its housing market, with home listings increasing by 47% year-over-year. This surge follows substantial federal workforce reductions under the Trump administration’s Department of Government Efficiency (DOGE), led by Elon Musk.
According to Realtor.com, active home listings in the D.C. metropolitan area rose by 56.2% for the week ending March 8, 2025, compared to the same period last year. This increase outpaces the national average, where listings grew by 27.8%.
The uptick in listings is largely attributed to federal employees impacted by the recent layoffs. Many are opting to sell their homes amid job uncertainty, leading to a notable influx of properties on the market. Nearly 8,000 homes are currently listed for sale in the D.C. metro area, with almost half of these properties listed in the last month.
The median home price in Washington, D.C., has also seen a decline. Data from Redfin indicates a 20% drop, with prices falling from $699,000 in November 2024 to $560,000 in February 2025 . This decrease reflects the increased supply and reduced demand in the housing market.
Elon Musk’s leadership at DOGE has led to aggressive cost-cutting measures, including the cancellation of over 680 leases and the sale of at least 32 government properties valued at $185 million . These actions have further influenced the housing market dynamics in the region.
Despite the surge in listings and declining prices, some experts caution against labeling the situation as a market crash. Realtor.com senior economist Joel Berner notes that while inventory is rising and prices are cooling, these trends are largely in line with national patterns.
Local real estate agents report that while there’s increased activity, panic selling has not become widespread. Jay Nix, an agent with Compass Real Estate, mentioned that many buyers and sellers are adopting a wait-and-see approach, monitoring how the situation unfolds in the coming months.
The impact of the federal layoffs extends beyond D.C., with cities like Virginia Beach and Oklahoma City, which have significant federal employment, also monitoring potential housing market changes.
While the full effects of the federal workforce reductions on the housing market are still developing, the current trends indicate a shift towards a buyer’s market in Washington, D.C. As the situation evolves, both buyers and sellers are advised to stay informed and consider the broader economic factors at play.
