Elon Musk is no longer in Washington, DC, but the job-slashing impact of his Department of Government Efficiency (DOGE) has a lingering impact on the local housing market.
A new data report from Bright MLS found over half (54%) of DC-area agents reported federal workforce reductions are affecting market activity, with 43% saying they’ve seen an uptick in sellers, while a smaller number of agents (3%) reported seeing more buyers due to DOGE actions.
“This spring marked a turning point for the Washington housing market,” said Lisa Sturtevant, Chief Economist at Bright MLS. “Federal buyouts provided older, often higher-income homeowners a chance to cash out and relocate, but the ripple effects are just beginning. As more impacted families list homes post-school year, we could see further price pressure across the region this summer and fall.”
Sturtevant added, “Federal agencies have recently begun rehiring a limited number of laid-off workers, and no new cuts have been announced. However, with buyout payments ending later this summer, more selling activity may still be on the horizon,” Sturtevant said. “By fall, the increase in inventory in the region could lead to flat or falling home prices in some markets in the region.”
Bright MLS also reported the median home price in the DC region was up 3.1% compared to a year ago, hitting a new record high of $659,950. This market recorded 4,790 closed sales, down 6.5% compared to last May, while year-to-date sales are tracking 2.0% below last year’s level.
At the end of May, there were 10,413 active listings in this market, a 41.6% increase over a year ago. However, new listing activity was only up by 0.4% year-over-year in May.
Noo No we want bigger government, more bureaucracy, more spending, more control from government…right? We hate government being pared down don’t we?