Cut federal jobs see an unprecedented 25% of the list of homes in Washington – is it a “sign of what’s about to happen”?
New Redfin data shows that housing stock in Washington, D.C. has jumped to an unprecedented 25%, the biggest leap in its record.
This spike reflects the imminent shift towards buyers in a market that was previously strongly favored by sellers. Economists will add to a wave of cuts in federal work, prompting thousands of pink workers to leave the area for cheaper cities or completely remote roles.
“Many people in Washington, D.C. are selling homes because they are losing their jobs,” said Mary Bazargan, a local Redfin Premier real estate agent. “Many of these people plan to leave the area because of the high cost of living, and they want a new job that allows them to work remotely and be closer to their families.”
“This is a new phenomenon, and a new list will jump. It’s a record,” said Daryl Fairweather, chief economist at Redfin.
The sudden availability of the home has not shifted prices yet, but experts predict that this could happen. Here’s what you need to know is whether you are buying the market in the capital’s housing market or hope to sell in 2025.
CNN reported that since Trump took office on January 20, he has fired or targeted more than 121,000 federal workers who have laid off their jobs. Workers who no longer need to live in DC areas can have a huge impact on local housing, creating a more competitive environment.
With more homes on the market, sellers no longer think they will receive multiple offers on their first weekend. Fairweather said many sellers may now need to offer concessions to sweeten the deal, such as checking for unexpected events, closing cost credits or mortgage rates to buy.
Redfin data showed inventory in May’s wider DC subway, including Northern Virginia and nearby Maryland, rose 25.1%, bringing the nation to a 14.2% increase compared to the previous year. Prices have not collapsed yet – the median sale price has dropped by just 3% – but the trajectory is very different from what the seller indicated terms last spring.
“What happens to housing stock in Washington, D.C., which may indicate what will happen to other U.S. housing markets,” Asad Khan, senior economist at Redfin, said in a press release. “While strong housing demand is to boost DC prices, the rest of the country is not that hot. Other markets may not be able to absorb further inventory growth without lowering prices.”
