The real estate market in the city of Washington and its metropolitan area in Virginia and Maryland is facing challenges due to massive layoffs of federal employees caused by the actions of President Donald Trump and his ally Elon Musk. The number of homes for sale in the capital during the week of March 8 increased by 56.2% compared to the previous year, according to data from Realtor.com.
The massive layoffs of workers from federal agencies and departments have been ordered by the president and his right-hand man as part of a plan to reduce public spending and bureaucracy since Trump took office nearly two months ago. The consulting firm Oxford Economics reports that the District of Columbia is one of the most affected areas by these layoffs due to the high concentration of government headquarters, followed by Maryland, New York, and Virginia.
These layoffs are reflected in the local real estate market, with a notable increase in the supply of homes for sale in the District of Columbia in recent weeks. While in other markets the supply has remained stable during the winter, in the capital there was an increase of 35.9% in January and 41% in February compared to the previous year, according to data from the real estate portal.
Despite this upward trend in housing supply, prices have experienced a decrease, which could benefit those interested in purchasing property in the area. The average price during the week of March 8 recorded a drop of 1.6% compared to the previous year.
Amid these changes in the real estate market, the residents of Washington and its metropolitan area are affected by the consequences of the massive layoffs driven by the Trump administration, creating uncertainty in the local real estate sector.
