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DC area housing market impacted by federal job cuts, financial uncertainty: study

By and
Updated  June 25, 2025 10:41pm EDT
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FOX 5 DC
Federal layoffs impacting DC housing market, new study shows

Federal layoffs impacting DC housing market, new study shows

A new report is highlighting the impacts of federal job cuts on the housing market in the D.C. region. Realtors say clients are selling because of the unknown when it comes to job security.

The Brief

    • A new report shows that 40 percent of realtors in the DMV have had clients make a decision to buy or sell a home due to federal workforce layoffs and cuts.
    • More than a third of agents and brokers in the Washington region say that federal workforce layoffs and cuts are causing home prices in their local markets to fall.
    • Several relators in the area say the uncertainty is also impacting home sales, adding that right now, it's a buyer's market.

WASHINGTON - A new report is highlighting the impacts of federal job cuts on the housing market in the D.C. region. 

Realtors say clients are selling because of the unknown when it comes to job security.

Widespread worry:

"In my 16 years selling real estate in D.C., I’ve never seen anything like this in our market. We’ve always isolated and protected by the federal government," said Jenn Smira, a realtor with Compass DMV. 

The new report, released by housing list service company Bright MLS, says 40 percent of realtors in the DMV have clients who are getting rid of their homes because of the cuts on government spending, which includes federal jobs.

"I had a buyer that was in transaction that had to pull out because they got an email the next day that they were getting laid off because of the job cuts," Keller Williams realtor Gyimah Kyei told FOX 5. 

Realtors all across D.C., Maryland and Virginia all agree, saying things are uncertain.

"I haven’t had anyone flat out say, ‘I lost my job due to DODGE and now I want out,’ but I have had listings where I thought I was going to get a lot more offers than I did and when I followed up with those buyers’ agents they told me ‘my client was in fear of losing their job so they decided not to buy now,’" said realtor Dylan Ford. 

FULL REPORT: Tracking the impact of DOGE on the housing market

Home prices impacted:

In addition to the uncertainty, the Bright MLS survey found that more than a third of agents and brokers in the D.C.-area say the layoffs also have an impact on home prices. They're taking a dip, with homes also staying on the market longer.

One realtor who spoke with FOX 5 just last year said a home would sell within a weekend, compared to now, when they're seeing homes stay on the market for about a week. 

But homes are still selling, and it's definitely a buyers market.

What they're saying:

"It’s certainly a good time to purchase. A lot of our contracts that we are getting, buyers are getting a lot of help out of closing help support," Kyei said. "For sellers I don’t think it's a great idea to wait until the end of the year because you don’t know what can happen."

Ford is in agreement, saying, "Overall I’m seeing more strength for buyers, I’m seeing a lot more negotiating power than even just a year ago." 

Smira says more stability within the government could help the housing market. 

"It hasn’t been good," she said. "There is a real opportunity for this administration to bring some confidence back and give people some certainty."

The report also reveals that in the spring months, older adults and retirees make up a large portion of recent sellers in the D.C. area.

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