Are DOGE layoffs going to flood the DC housing market?

• Layoffs from the U.S. Department of Government Efficiency could be causing concern around the D.C. housing market. Economists are dismissive.

• Recent viral posts suggest a flood of homes hitting the market due to government layoffs. Still, real estate experts say there is little to no change in the D.C. housing market.

• While some data indicates a slight drop in home prices and increased listings, experts believe the market remains stable and unaffected by layoffs.

---

Full Story

A federal judge on Tuesday, Feb. 18, declined a request to block the U.S. Department of Government Efficiency’s access to federal data systems or to participate in layoffs. The news is one of the latest in Washington D.C. creating worry around the Beltway’s housing market. 

A series of viral posts in the last week show a flood of homes soon to hit the market. They infer that government layoffs in a metropolitan area where taxpayers pay nearly 1-in-10 workers could be the cause. 

Coverage over the housing anxiety has been met with real estate experts who showed data that reflects little to no change in the D.C. area or surrounding housing markets. 

“Despite turmoil in Washington DC, the local housing market is business as usual,” said Daryl Fairweather, chief economist at Redfin.

They point to the sale of homes at nearly the same rate in February 2025 as the previous year. Some agents point to the federal government’s return-to-office orders as a potential reason for the increasing housing demand. 

Others point to data that could support the idea that mass federal layoffs could cause a shift in the market, albeit delayed.

“Since DOGE began discussing mass layoffs, the median home price in Washington DC has FALLEN by -$139,000,” the Kobeissi Letter, a market research newsletter, said in a post to X. “In 30 days, nearly 4,000 homes have been listed for sale in and around Washington DC.” 

The outlet also points to an increase in listings on Zillow of over $1 million. They add that the buy-out contracts could delay the sell-off taken by tens of thousands of workers, allowing them to take time to move.

Redfin told Newsweek of some DC-area agents seeing buyers canceling contracts over uncertainty regarding federal layoffs.