Homes for Sale in Washington Surge 25 Percent Amid Federal Layoffs

More than 280,000 job cuts have so far been announced in the government sector this year.

A home available for sale in Austin, Texas, on May 22, 2024. Brandon Bell/Getty Images

The number of active listings of homes for sale in the District of Columbia area jumped by 25.1 percent in April, year-over-year, according to real estate brokerage Redfin.

It is the “largest gain on record,” the company stated. Active listings are at their highest level since 2022, Redfin said.

Redfin attributed the jump in housing inventory to the Trump administration’s efforts to reduce the federal workforce, and highlighted that federal jobs make up 11 percent of all jobs in the region.

“Quite a few people in D.C. are selling their homes because they’re losing their jobs,” said 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.”

According to a May 1 report from outplacement company Challenger, Gray & Christmas, the government sector has announced more than 282,000 job cuts this year through April, up from about 36,000 reductions from the same period last year.

Nearly 217,000 of the new layoffs were announced in March. The job cuts dipped to less than 2,800 in April.

The federal layoffs followed a presidential action signed by President Donald Trump on Feb. 11 that called on agency heads to take action to implement “large-scale reductions” in the workforce.

“By eliminating waste, bloat, and insularity, my Administration will empower American families, workers, taxpayers, and our system of government itself,” it said.

Meanwhile, despite the increase in housing inventory in the District of Columbia, home prices have not dropped.

The market “remains hotter than the U.S. market,” with housing prices registering larger increases and properties selling at a faster pace, Redfin said.

Housing Market in 2025

Real estate marketplace Zillow is expecting home prices across the United States to drop in 2025, the company said in a statement on April 18.

“Home values are projected to drop by 1.9 percent this year—a revision from the previous expectation of a 0.6 percent increase,” it said. “The combination of rising available listings and elevated mortgage rates is signaling potential price drops by year’s end.”

“With increased supply, buyers are gaining more options and time to decide, while sellers are cutting prices at record levels to attract bids.”

If home prices were to come down further and mortgage rates decline, the sale of existing homes may see an uptick by the end of the year due to better affordability, according to Zillow.

The average weekly rate on a 30-year fixed-rate mortgage has hovered in the 6.5–7 percent range for many months, refusing to come down in any significant way.

Rates have fallen for two consecutive weeks. For the week ending May 1, the rate was at 6.76 percent, lower than the peak of 7.04 percent in January, but higher than the 6.08 percent low in September.

Lisa Sturtevant, chief economist at real estate data company Bright MLS, said in a May 1 commentary that there is still a “lot of economic uncertainty.”

“The housing market—and homebuyers themselves—has been defying expectations for the last couple of years as demand remained strong even with elevated mortgage rates and record low affordability,” she said.

“So, it is possible we could see prospective homebuyers push through the uncertainty to take advantage of more inventory and lower mortgage rates, leading to stronger sales in the weeks ahead.”

Meanwhile, the Federal Reserve’s benchmark interest rates, which can influence mortgage rates, remained unchanged at this month’s meeting.

A significant drop in the Fed’s rate could trigger a sizable decline in mortgage rates, boosting the housing market.