New data from Redfin shows housing inventory in Washington, D.C., has jumped an unprecedented 25% year over year, its largest leap on record.
This spike is reflecting an impending shift towards buyers in a market that previously strongly favoured sellers. Economists tie the increase to a wave of federal job cuts that has pushed thousands of pink-slipped workers to leave the area for cheaper cities or fully remote roles.
“Quite a few people in D.C. are selling their homes because they’re losing their jobs,” says local 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.”
Redfin Chief Economist Daryl Fairweather says, “It’s a new phenomenon that new listings would be jumping so much. This is a record.”
The sudden availability of homes hasn’t shifted prices yet, but experts predict that may be coming. Here’s what you need to know if you’re in the market for a home in the capital — or are looking to sell in 2025.
Since Trump took office on January 20th, more than 121,000 federal workers have been laid off or targeted for layoffs, reports CNN. Workers who no longer need to live in the D.C. area could have a massive impact on local housing, creating a more competitive environment.
With more homes on the market, sellers can no longer assume they’ll receive multiple offers on the first weekend. Fairweather says many sellers may now need to offer concessions to sweeten the deal, such as inspection contingencies, closing-cost credits, or mortgage-rate buydowns.
Redfin data shows inventory across the broader D.C. metro (including Northern Virginia and nearby Maryland) rose 25.1% in May, dwarfing the national increase of 14.2%. Prices haven’t collapsed — the median sale price dipped only 3% — but the trajectory feels very different from last spring when sellers were dictating terms.
“What’s happening with housing inventory in Washington, D.C. could be a sign of what’s to come in other U.S. housing markets,” says Redfin Senior Economist Asad Khan in a press release. “And while strong housing demand is buoying prices in D.C., the rest of the country isn’t so hot. Other markets may not be able to absorb further inventory growth without prices softening.”
