Home prices in Washington, D.C., have dropped significantly following widespread layoffs of federal employees under the Trump administration’s cost-cutting measures.

The reductions, led by Elon Musk’s Department of Government Efficiency (DOGE), have resulted in thousands of job losses, forcing many former federal workers to sell their homes, according to The Kobeissi Letter (TKL).

Since November, the median home price in Washington, D.C., has declined by 20%, falling from $699,000 to $560,000, according to data from Redfin.

Here’s a chart showing median home price in the Washington, DC area.

In November 2024, the median home in Washington, DC was worth ~$699,000, according to Redfin.

Today, the median home is worth $560,000, marking a -20% drop in ~3 months.

Mass selling is an understatement. pic.twitter.com/g7qJDfZB5D

— The Kobeissi Letter (@KobeissiLetter) February 15, 2025

Elon Musk Called This Financial News 'Terrifying'

The market downturn has been fueled by a surge in listings, as federal employees impacted by the layoffs look to relocate.

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According to TKL, nearly 8,000 homes are currently for sale in the D.C. metro area, with almost half of those properties listed in the last 30 days.

Year-over-year, home listings in the Washington DC metro area are up ~23%.

Parts of Virginia are seeing 60%-70%+ jumps in year-over-year listings.

Keep in mind, this is during the winter months in a housing market that has been historically LOW on supply.

Truly insane. pic.twitter.com/mgbeUCeCLG

— The Kobeissi Letter (@KobeissiLetter) February 15, 2025

The trend has been particularly noticeable among high-value homes, with 525 properties listed for over $1 million and 44 homes priced at $5 million or more.

Here’s where it gets even more interesting:

There has been a SURGE in new listings in Washington, DC with a listing price of $1,000,000+.

There are now 525 listings of $1+ million and 44 listings worth $5+ million.

This suggests high-profile job exits are rising. pic.twitter.com/WR2bDApWt0

— The Kobeissi Letter (@KobeissiLetter) February 15, 2025

Redfin real estate agents in Washington, D.C., have reported that uncertainty among federal workers and return-to-office mandates have contributed to the sudden wave of home sales.

“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,” said Stuart Naranch, a Redfin Premier agent.

“They both work for the government and want a more convenient commute because they’ll need to return to in-person work soon.”

The housing market shift comes as the Trump administration continues its aggressive push to reduce the size of the federal government.

On Friday, President Donald Trump and Elon Musk fired more than 9,500 government employees across several agencies, including the Departments of Interior, Energy, Veterans Affairs, Agriculture, and Health and Human Services.

Many of those laid off were probationary employees in their first year on the job, who lack the employment protections afforded to long-term federal workers.

These firings come on top of the approximately 75,000 government employees who have voluntarily taken buyouts as part of the administration’s efforts to shrink the federal workforce, according to the White House.

The wave of layoffs has impacted multiple federal departments, including critical agencies such as the Centers for Disease Control and Prevention (CDC) and the National Institutes of Health (NIH).

According to sources familiar with the reductions, nearly half of the probationary workers at the CDC and additional employees at the NIH are being forced out.

Other agencies seeing significant staffing cuts include:

• U.S. Forest Service – 3,400 recent hires terminated
• National Park Service – 1,000 workers laid off
• Department of Energy – 1,200 to 2,000 layoffs, including 325 from the National Nuclear Security Administration (NNSA)

The Department of Energy’s layoffs have been partially reversed in order to retain essential nuclear security personnel, though the exact number of reinstated positions remains unclear.

Meanwhile, the Internal Revenue Service (IRS) is preparing to lay off thousands of employees next week, a move that could affect tax-processing operations ahead of the April 15 deadline for Americans to file income taxes.

BREAKING: The IRS is gearing up to fire thousands of federal workers as soon as next week, according to the New York Times.

The revelation comes one day after DOGE workers were reportedly unleashed on the Internal Revenue Service.

During a press conference, Trump said the… pic.twitter.com/ITGQRKnZN6

— Collin Rugg (@CollinRugg) February 14, 2025

While the administration’s push to downsize the federal workforce continues, some layoffs have been challenged in federal court, delaying or blocking additional firings.

Trump and Musk have also pushed to strip civil-service protections from career employees, freeze most U.S. foreign aid, and shut down agencies such as the U.S. Agency for International Development (USAID) and the Consumer Financial Protection Bureau (CFPB).

As job cuts continue to reshape the federal workforce, the housing market in Washington, D.C., appears to be feeling the impact, with falling home values and an increasing number of high-profile properties hitting the market.

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