DOGE layoffs are starting to leave their mark on D.C.’s housing market

JaneDigital Marketing2025-06-2774714

The DOGE effect is finally here.

After months of speculation, there are growing signs that the housing market in the Washington, D.C., metro area is starting to shift, and federal workforce layoffs are to blame, according to new data from Bright MLS, the multiple listing service that serves the mid-Atlantic region.

For-sale inventory in the region is spiking, driven in part by early retirements and general economic uncertainty. While prices are holding steady for now, some real estate agents are reporting buyer hesitancy that could translate to lower prices down the line.

Nearly 40% of D.C.-area agents surveyed by Bright MLS said they worked with clients who were buying or selling due to federal layoffs or buyout offers last month. Over half said the job cuts were affecting the market, and 43% reported seeing more sellers.

“The key word is uncertainty — total uncertainty,” said Diane Yochelson, a Realtor at Compass in Bethesda, Md., just northwest of the city. “One day you go to work, and the next day you’re done — you can’t even go back to your office.”

Yochelson has had several clients in government contracting who were affected by the cuts. One, who was laid off in February, was hoping to buy a home in the region before her son started kindergarten. Now, several months later and still unemployed, she’s thinking about living elsewhere.

“People are now considering leaving the D.C. area,” Yochelson said. “Even if it’s a two-income family and only one person has lost their income, because of the financial straits they’re in, they may look to go someplace else where it’s more affordable.”

Read more: 2025 housing market: Is it a good time to buy a house?

As of May, there were more than 13,500 homes for sale in the D.C. metro area, according to Realtor.com, nearly double the inventory available a year earlier. Listings have increased nationwide, but there’s evidence that at least some of the jump in the D.C. area is tied to the Department of Government Efficiency’s efforts to shrink the federal workforce through layoffs and buyouts, said Lisa Sturtevant, Bright MLS’s chief economist.

Agents and brokers reported that some 15% of spring sellers in D.C. were selling due to retirement, compared with less than 10% in the broader mid-Atlantic region. Earlier this year, the Trump administration offered a buyout to federal workers, offering up to eight months of salary and benefits. Around 75,000 took the offer. Though federal workers are based all over the country, about 15% live in the D.C. area.

Read more: 3 tips for selling your home in today's housing market

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While inventory is climbing, prices haven’t shown any signs of easing yet. The median home in the area sold for just under $660,000 in May, up 3.1% from a year ago, according to Bright MLS data.

But Sturtevant thinks prices can’t continue to grow as aggressively in the months ahead.

“We’re at a point now where there’s enough inventory that’s come on the market that we are starting to see a change in prices,” she said. “We’ll continue to see prices grow more slowly and possibly actually decline year over year in some local markets.”

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Cliff Cohen, an estate planning lawyer, knew he was taking a gamble when he decided to put his condo in Friendship Heights, Md., on the market in April with the goal of relocating to Florida. After a number of showings, but no offers, he pulled it this month and plans to re-list in the fall in hopes of finding a stronger market.

“We see the buying pool not only diminished, but also those people that would like to buy are afraid to pull the trigger,” Cohen said. “There’s so much uncertainty now."

Claire Boston is a Senior Reporter for Yahoo Finance covering housing, mortgages, and home insurance.

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Fletcher

The initial wave of DOGE-driven layoffs is gradually etching its footprint on Washington D.C.'s housing market, with a rise in real estate listings and cautious buyers waiting for clearereconomic indicators.

2025-06-30 18:27:23 reply
Indira

The recent wave of layoffs among DOGE-related companies in Washington D.C is already imprinting its impact on the city's housing market, with a noteworthy increase in available rental units and declining property values as employees seek affordable accommodations.

2025-06-30 18:27:39 reply
Maren

As DOGE-related layoffs begin to take effect, the ripple effects within D.C.'s housing market are becoming increasingly visible with a slowdown in home sales and rentals attributed partially due to financial uncertainties among dogecoin enthusiasts.

2025-07-02 07:25:59 reply
Liberty

With the commencement of DOGE layoffs in Washington D.C., a subtle yet unignorable influence is being felt onramp markets, suggesting an impending shift towards more cautious investments as real estate professionals brace for potential upticks or spells accelerating change."

2025-07-02 07:26:14 reply
Echo

The wave of DOGE-related layoffs is now clearly visible in the Wash city housing market, presenting a tangible impact on real estate values and demand dynamics.

2025-07-06 18:23:02 reply
Delaney

The recent wave of DOGE company layoffs appears to be having a noticeable impact on the Washington D.C.'s housing market, with potential homebuyers and renter populations becoming more discerning as their financial security shifts.

2025-07-06 18:23:18 reply
Heath

As DOGE-related layoffs commence in the nation's capital, their impact on Washington D.C.'swith its tightly knit real estate market is seen as a potential catalyst for price adjustments and increased availability of housing options.

2025-07-07 18:50:26 reply
Keira

The recent wave of layoffs across the DOGE industry is projected to exert a pronounced impact on Washington D.C.'s real estate market, causing an influx in foreclosed properties and a reduction of demand from financially strained buyers.

2025-07-12 19:34:16 reply
Lily

With the initial wave of DOGE-related layoffs in Washington DC's tech sector starting to take hold, a ripple effect is visible across housing markets as renters and properties become harder to maintain for those impacted.

2025-07-12 19:34:32 reply
Celestia

With the onset of DOGE-related layoffs, there are early signs that a ripple effect is being felt in D.C.'s housing market with stagnating property values and an increased number of homes on real estate listings without buyers.

2025-07-15 18:30:56 reply
Yvette

The growing tide of DOGE-related layoffs is gradually shaping the landscape and sentiment within Washington, D.C.'s housing market as people adjust to their financial realities.

2025-07-20 11:33:54 reply
Ansel

The commencement of DOGE layoffs is increasingly making a visible impact on the housing market in Washington D.C., as an unprecedented wave of job losses starts to affect demand for residential real estate and reshaping property value trends across various districts.

2025-07-21 09:53:53 reply
Wyatt

The recent wave of layoffs at DOGE has begun to leave its tangible impact on the already fragile housing market in Washington D.C., with turbulent trends like an influx of home foreclosures and diminished buyer interest observed.

2025-07-22 09:28:14 reply
Koa

The commencement of DOGE-related layoffs is marking a notable shift in Washington D.C.'s housing market dynamics, leading to an increased number of properties on the open market and concerns over affordability as job security becomes uncertain.

2025-07-22 09:28:28 reply

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