Federal layoffs in D.C. impacting housing market, with inventory rising and buyer hesitancy

From Yahoo Finance: 2025-06-25 05:00:00

The housing market in the Washington, D.C., metro area is shifting due to federal layoffs, with for-sale inventory spiking. Real estate agents report buyer hesitancy, potentially leading to lower prices. Many clients are affected, considering leaving the area for more affordable options elsewhere.

Listings have doubled in the D.C. metro area, with 15% of spring sellers in D.C. selling due to retirement. The Trump administration offered buyouts to federal workers, with around 75,000 accepting. Despite inventory increase, median home prices in May rose 3.1% year over year.

Prices haven’t eased despite climbing inventory, but Bright MLS’s chief economist expects slower growth and possible declines in some local markets. An estate planning lawyer pulled his condo listing due to lack of offers, reflecting buyer uncertainty and a diminished buying pool in the market.

Diane Yochelson, a Realtor in the area, notes the uncertainty and impact of layoffs on the market. Buyers are hesitant to make purchases in the current climate. With the market shift, some are considering leaving the D.C. area for more affordable living options elsewhere.

Read more: DOGE layoffs are starting to leave their mark on D.C.’s housing market