Federal Layoffs Raise Washington DC Housing Inventory, Buyer Hesitancy

The Washington, D.C. metro housing market is experiencing significant shifts due to federal workforce layoffs and buyouts initiated under President Trump's Department of Government Efficiency (DOGE). Real estate agents report a surge in home listings driven largely by early retirements and economic uncertainty, with nearly 40% of agents working with clients affected by the federal job cuts. This has resulted in increased inventory—more than doubling over the previous year—and growing buyer hesitancy, which could lead to downward pressure on home prices. Older, higher-income federal employees are leading the sell-off, often cashing out their fully paid homes and relocating, contributing to a rise in homes on the market and longer selling times. While home prices remain above national averages, agents note a more pronounced price weakness and slower sales activity in D.C. compared to the broader U.S. market. Overall, the market is shifting toward a buyers' market due to the ongoing financial uncertainty tied to federal workforce reductions.