As the Trump Administration continues to dismantle government agencies and the public services they provide, the impact’s already carrying over into local real estate.
For-sale listings spiked over 50% annually in the Washington D.C. metropolitan area amid the job losses and uncertainty emanating from the nation’s capital, according to Realtor.com.
Find your lowest rate. Start hereWashington, D.C.’s latest housing trends
Active home listings in Washington, D.C. ballooned 56.2% annually for the seven days ending March 8, according to Realtor.com’s Weekly Housing Report. Meanwhile, the median listing price fell 1.6% and the time spent on market shortened by five days.
Although inventory has surged from the pandemic-era desert, D.C.’s listing count more than doubled the overall U.S. growth rate. The national year-over-year data showed active listings grew 27.8%, median listing prices dipped 0.2%, and time on market expanded by four days for that same time frame.
“The adjustment period following federal layoffs and funding cuts has likely put some Washington D.C. home searches on hold, both for those whose jobs have been directly impacted and those who may be concerned about what’s ahead, and the data hints at these challenges,” said Danielle Hale, chief economist at Realtor.com.
“So far, we’re seeing more homes on the market, and modestly lower asking prices, but the situation continues to evolve,” Hale continued. “And while D.C. has the largest share of federal workers in the country, other highly federally employed markets could see similar shifts in the coming weeks or months. While I expect many households will choose to stay in the area and pivot to find new job opportunities, some will likely choose to leave and retire or find a job elsewhere.”
Bursts of unemployment can lead to “noticeable consequences” for a housing market, like more for-sale supply coupled with lessened demand, according to Realtor.com. And while that combination typically results in decreasing prices, fewer viable buyers in the marketplace could open the door to investors vulturing those homes at discounts, especially if sellers become desperate.
In addition to the District of Columbia, the next four metro areas by share of government employment all outpace the national rate of for-sale inventory growth, in what could be a housing harbinger.
The table below shows the five metro areas with the largest shares of federal employment and their market shifts between 2024’s fourth quarter and the first two weeks ending in March 2025:
Time to make a move? Let us find the right mortgage for you| Unemployment Rate | Median Listing Price YoY | Active Listings YoY | Median Days On Market YoY | ||||||||
| Metro Name | Share of Federal Workers | Dec. 2024 | Q4 2024 | 3/1 | 3/8 | Q4 2024 | 3/1 | 3/8 | Q4 2024 | 3/1 | 3/8 |
| Washington, DC | 11.0% | 2.8% | -1.5% | 0.0% | -1.6% | 23.9% | 48.3% | 56.2% | 0 | -4 | -5 |
| Virginia Beach, VA | 7.0% | 2.7% | 3.7% | 0.0% | 1.0% | 25.2% | 24.6% | 28.3% | 4 | 6 | 2 |
| Oklahoma City | 4.2% | 2.8% | -5.1% | -1.7% | -1.6% | 33.6% | 36.1% | 32.3% | 3 | -2 | 1 |
| Baltimore | 3.7% | 2.7% | 0.9% | 10.5% | 7.7% | 23.7% | 31.5% | 33.0% | 1 | -2 | -2 |
| San Diego | 3.1% | 4.3% | -2.0% | -4.5% | -4.5% | 52.4% | 64.1% | 63.8% | 9 | 2 | 2 |
The bottom line for home buyers
If you’re house hunting around Washington, D.C., see if you qualify for any of the area’s grants and first-time home buyer programs, as well as other down payment and closing cost assistance.
When you’re ready to start your path to homeownership, make sure all your paperwork is ready and reach out to a local mortgage professional.
