The Trump administration’s mass layoffs of federal workers are having a significant impact on the Washington, D.C. housing market. A new report by Redfin shows that uncertainty is growing among buyers and homeowners in the city.
Since President Trump’s inauguration, the administration has cut thousands of jobs, with many more expected to be laid off in the coming weeks and months. The Department of Veterans Affairs recently announced it had to lay off over 1,000 employees, while the U.S. Forest Service is set to dismiss over 3,000 workers.
As a result, Redfin agents have reported that the city’s housing market is in chaos. With many federal workers facing uncertain futures, some are feeling motivated to buy new homes, while others are being discouraged from buying or selling.
According to data, housing demand in Washington, D.C. had already been affected before Trump’s inauguration. New home closings dropped by 16% in the year leading up to December 2024, and the resale market was stagnant.
Experts warn that a shrinking of the workforce in cities where federal jobs prompt people to move in and buy properties could directly affect housing demand. Other states with large federal workforces, such as California, Texas, and Florida, may also experience market strain.
As one Redfin agent noted, “I recently worked with a couple who bought their dream home with me a few years ago, but now they’re considering listing because they want to be closer to public transportation.”
The effects of future layoffs could reduce housing demand in the entire D.C. area, leading to increased competition among sellers and softer home prices. However, for buyers struggling with high mortgage rates and high prices, this could be good news.
Contact [email protected] if you’re a federal employee living in Washington, D.C., or planning to buy a home there, and share your experiences.
Source: https://www.newsweek.com/dc-housing-market-chaos-federal-employees-panic-2031016