Bright MLS, one of the largest multiple listing services in the US, just recently cautioned real estate agents and industry professionals: A toxic mix of a “new Presidential administration and higher-than-expected mortgage rates contributed to a slow start to the 2025 housing market” across the Washington, DC, metro area, plus surrounding counties in Northern Virginia and Maryland. Now, the floodgates have opened—active listings are soaring, and jobless claims are spiking across the region, as the writing’s on the wall: an economic downturn is just ahead for the federal bureaucracy as ‘DC Swamp’ draining accelerates.
Let’s start with the DC housing market and surrounding area trends.
Bright MLS’ latest monthly housing report for the Mid-Atlantic residential market, covering market trends through January, revealed a significant increase in active listings compared to the same period last year.
While a rise in listings is typical during a presidential transition year—especially ahead of the spring selling season—the region’s heavy concentration of federal workers is a major cause for concern in the era of President Trump and Elon Musk’s DOGE. That’s because, as of last week, Trump had already slashed 275,000 federal jobs.
Last month, local residential markets in Washington, DC, and surrounding counties in Northern Virginia and Maryland, saw a sharp increase in active listings, averaging 22.8%. Notably, Falls Church City, Virginia, experienced a 78.6% surge, followed by a 68.8% jump in Fairfax City, a 50.5% increase in Alexandria City, and a 33.5% uptick in Montgomery County, Maryland. These markets have a high concentration of federal workers, many of whom have spent their entire careers in the government without little to no experience in the private sector.
Hopefully, those that took the buyout/resignation package will NOT be eligible for Unemployment compensation since they voluntarily left their position.
They should do better at getting new positions based on their resume timeline – they can apply and get a new job while still employed before their time expires – whereas the ones that stick it out will enter a flooded candidate pool of workers dismissed by the Federal Government as superfluous!