Redfin reports the number of homes for sale in the nation’s capital is at the highest level since 2022 amid a mass reduction in the federal workforce under the Trump Administration
Active listings of homes for sale in Washington, D.C. jumped 25.1% year over year to the highest level since 2022 during the four weeks ending April 27—the largest gain on record. This is according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. By comparison, active listings nationwide rose 14.2%—the smallest increase since March 2024.
New listings in Washington, D.C. increased 11.4% year over year to the highest level since 2022—nearly double the national gain of 5.8%.
Washington, D.C. data in the report cover the Washington, D.C. metropolitan area, unless otherwise noted. Redfin’s records date back to 2015.
“Quite a few people in D.C. are selling their homes because they’re losing their jobs,” said local Redfin Premier real estate agent Mary Bazargan. “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. I recently worked with a buyer who bid on a home, offered more money than any other buyer and waived all contingences. Still, the seller ended up going with an all-cash offer because all of the layoff news made them nervous about accepting offers from financed buyers.”
Elon Musk’s Department of Government Efficiency (DOGE) has been slashing government workers in an attempt to reduce federal spending. At least 121,000 federal workers have been laid off or targeted for layoffs since President Donald Trump took office, according to CNN. Federal jobs represent 11.1% of all jobs in Washington, D.C.—the highest share among major U.S. metros analyzed by the APM Research Lab.
Initial unemployment claims in Washington, D.C. peaked in February, according to state-level data from the U.S. Department of Labor. But they may tick up again because more layoffs have recently been announced and some laid-off workers will become eligible to file for unemployment once their severance has dried up. Bazargan said she has recently received a lot of calls from prospective sellers who expect to find out if they’re getting laid off later this month or in June.
In some ways, the D.C. housing market remains hotter than the U.S. market, with homes selling faster and prices posting larger increases. The median home sale price in Washington, D.C. rose 4.1% year over year (to $600,964) during the four weeks ending April 27, outpacing the nationwide increase of 1.9% (to $387,855).
“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,” said Redfin Senior Economist Asad Khan. “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.”
Some places are seeing even larger supply growth than Washington, D.C. For example, nine of the 47 major metros Redfin analyzed posted a bigger increase in active listings during the four weeks ending April 27, led by Denver. Four metros saw a larger increase in new listings, led by Phoenix.
Redfin looked through historical data to rule out the possibility that the surge in D.C. listings is just something that always happens when a new president takes office. It found that listings did jump after Trump’s first inauguration in 2017, but that the increase had dissipated by this time that year, indicating that government layoffs are a likely factor in today’s increase in listings.
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Washington, D.C. Housing-Market Highlights: Four Weeks Ending April 27, 2025 |
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Washington, D.C. |
U.S.A. |
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Median sale price, YoY change |
4.1% |
1.9% |
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Homes sold, YoY change |
-0.9% |
2% |
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Pending home sales, YoY change |
-3.6% |
-2.7% |
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New listings, YoY change |
11.4% |
5.8% |
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Total homes for sale (active listings), YoY change |
25.1% |
14.2% |
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Months of supply |
3 |
4 |
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Median days on market |
26 |
39 |
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Share of homes that went off market in two weeks |
57.1% |
39.9% |
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Share of homes that sold above list price |
44.1% |
27.2% |
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Average sale-to-list-price ratio |
100.6% |
98.9% |
Washington, D.C. Suburbs Are Seeing Especially Large Upticks in Inventory
The Washington, D.C. metro area is vast, so Redfin also analyzed county-level data to show what’s happening with housing supply on a more granular level. Redfin found that active listings are rising fastest on the outskirts of D.C. proper, where many federal workers and private-sector government contractors live.
In Alexandria, VA, for example, active listings jumped 40.9% year over year during the four weeks ending April 27—the largest increase among the eight counties Redfin analyzed. Next came Montgomery County, MD (38.5%) and Loudoun County, VA (36.8%). The District of Columbia itself posted the smallest increase, at 14.9%.
A Washington Post analysis from April found that the U.S. Department of Health and Human Services has been among the hardest hit by D.C.-area layoffs, with many of the lost jobs in Montgomery, Frederick and Prince George’s counties.
To view the full report, including charts, please visit: https://www.redfin.com/washington-dc-housing-inventory-government-layoffs
