The housing market in the D.C. area, long known for its stability, is now facing a wave of inventory driven by both uncertainty and early retirements among federal employees.
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40% of DC-area real estate agents say they have a client selling because of DOGE
Most people in the D.C. region probably know someone affected by cuts to the federal workforce and government spending, or might be concerned they will be. The same goes for area real estate agents.
Listing service Bright MLS reports almost 40% of buyer and seller agents in the D.C. region worked with clients in May whose decisions were driven by federal government layoffs and cuts. And over half agents surveyed report that federal workforce reductions are impacting market activity.
The housing market in the D.C. area, long known for its stability, is now facing a wave of inventory driven by both uncertainty and early retirements among federal employees, according to Bright MLS’ survey.
It said the trend is putting downward pressure on prices, and could signal a broader reshaping of homeownership patterns in the area.
“This spring marked a turning point for the Washington housing market. Federal buyouts provided older, often higher-income homeowners a chance to cash out and relocate, but the ripple effects are just beginning,” said Lisa Sturtevant, chief economist at Bright MLS.
“As more impacted families list homes post-school year, we could see further price pressure across the region this summer and fall.”
This spring, 15% of home sales in the D.C. area were due to retirement, compared to 10% across the broader mid-Atlantic region. And Bright MLS said many of those retirees were federal employees with above average incomes and fully paid-off homes.
Over half agents responding to the survey said federal workforce reductions are affecting market activity, specifically with 43% say they’ve seen an uptick in sellers.
With an estimated 75,000 federal government employees drawing pay and benefits through September through early buyout agreements, Bright MLS expects an increase in homes for sale by fall could lead to flat or even falling home prices in some markets in the D.C. region.
Full survey results from the Bright MLS report on DOGE effects on the D.C. market are online.
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