Active home listings in the Washington, D.C., metro area spiked by 25% in April, marking the largest increase on record and reaching the highest level since 2022. This surge in inventory is a result of layoffs initiated by the Department of Government Efficiency affecting the city with the highest number of federal employees.
Following the layoffs by the Department of Government Efficiency in Washington, D.C., home listings in the nation’s capital experienced the most significant increase on record, soaring to the highest level since 2022, as reported by Redfin. While active listings across the country saw a 14.2% rise— the smallest increase in over a year—home listings in the D.C. metro area surged by 25% during the four-week period ending April 27 compared to the previous year, the largest increase recorded since Redfin started tracking this data in 2015.
The impact of these changes was particularly felt in the D.C. suburbs. Active listings in Alexandria, VA; Montgomery County, MD; and Loudoun County, VA surged by 40.9%, 38.5%, and 36.8%, respectively, while listings in the D.C. municipality saw a 14.9% increase. The total volume of active listings in the metro area reached 12,649, the highest since November 2022.
These spikes in active listings in Washington, D.C., occurred following significant layoffs by the Department of Government Efficiency in the federal government, with an estimated 121,000 employees affected since President Donald Trump’s term began, according to CNN. D.C. holds the highest percentage of federal positions among U.S. metros, with 11.1% of all jobs being federal positions. The impact of these layoffs also affected neighboring municipalities like Baltimore and Virginia Beach.
The rise in active listings in Washington, D.C., reflects the current economic landscape, with many individuals selling their homes due to job losses. Despite high inventory levels, some sellers are cautious about accepting offers from buyers requiring financing, with all-cash offers being favored in some cases.
Despite the challenges, the D.C. housing market continues to outperform the national average, with homes selling quickly and at higher prices. The median home sale price in Washington, D.C., saw a 4.1% increase to $600,964 in April compared to the previous year, outpacing the nationwide increase of 1.9% to $387,855.
Redfin Senior Economist Asad Khan noted that the housing inventory trends in Washington, D.C., could signal future developments in other U.S. housing markets. While the D.C. market remains strong, there is concern that other markets may struggle to absorb additional inventory without experiencing price declines.
