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The swamp is being drained.
Back in February, real estate insiders pushed back on headlines declaring a collapse in the Washington, D.C. housing market under the Trump administration’s federal downsizing. At the time, market data showed little signs of crisis. But just a few months later, a new Redfin report reveals a sharp shift.
As of April 27, active listings in Washington, D.C. have surged 25.1 percent year over year, the largest jump on record and nearly double the national increase of 14.2 percent. New listings are also up 11.4 percent, compared to the nationwide gain of just 5.8 percent. It’s the highest level of inventory D.C. has seen since 2022.
Redfin attributes this spike in inventory to sweeping layoffs of federal workers in efforts to reduce federal spending, led by President Donald Trump’s administration and Elon Musk’s Department of Government Efficiency (DOGE). According to CNN, at least 121,000 federal workers have been laid off or targeted for layoffs. Given that federal jobs make up 11.1 percent of all employment in the District — more than any other metro analyzed by the APM Research Lab — the impact is particularly acute.
Mary Bazargan | Redfin Premier Agent
“Quite a few people in D.C. are selling their homes because they’re losing their jobs,” Mary Bazargan, a local Redfin Premier real estate agent, said in the report. “Many of those people are planning to leave the area because the cost of living is high, and they want a new job that allows them to work remotely and be closer to family.”
Bazargan recalled a recent transaction in which a buyer waived contingencies and bid above asking, but still lost out to an all-cash offer — proof, she said, that sellers are growing cautious amid economic uncertainty.
Though some early 2025 reports suggested listings were holding steady, the April data shows a different story. State-level data from the U.S. Department of Labor reveals that initial unemployment claims in D.C. peaked in February. With more layoffs expected this spring, Bazargan has been fielding a surge in calls from potential seller bracing for pink slips.
Despite the turmoil, D.C.’s housing market remains a hot commodity, with homes selling quickly and sale prices rising 4.1 percent year over year to $600,964 as of April 27.
Asad Khan | Redfin Senior Economist
“What’s happening with housing inventory in Washington, D.C. could be a sign of what’s to come in other U.S. housing markets,” Redfin Senior Economist Asad Khan said. “And while strong housing demand is buoying prices in D.C., the rest of the country isn’t so hot. Other markets may not be able to absorb further inventory growth without prices softening.”
The suburbs surrounding D.C. are seeing the steepest inventory gains, including Alexandria, Virginia (up 40.9 percent), Montgomery County, Maryland (up 38.5 percent) and Loudoun County, Virginia (up 36.8 percent).
Overall, nine of the 47 major metros Redfin analyzed had bigger inventory gains, led by Denver, while four metros, led by Phoenix, had higher increases in new listings.
To ensure the trend wasn’t the usual post-inauguration shuffle, Redfin reviewed historical data. While there was a brief uptick in listings after Trump’s 2017 inauguration, it quickly faded. This time, the surge is persisting, a sign that widespread federal layoffs are likely fueling and reshaping the region’s housing landscape.
