T
he Washington, D.C. luxury real estate market is experiencing a remarkable surge in demand, dubbed the "Trump Bump." This phenomenon began around November, when the nation's capital witnessed an unprecedented increase in sales of high-end homes worth at least $5 million. According to Nurit Coombe, managing partner of The Agency DC, this trend has continued into the new year.

    Coombe attributes the surge to a combination of factors, including the influx of wealthy individuals and families associated with the Trump administration. "We're seeing a complete shift in the type of people moving to the area," she notes. "It's not just government employees; we're also seeing CEOs, attorneys, and consultants from big companies relocating here."

    The neighborhoods benefiting most from this trend include Kalorama, Foxhall, Georgetown, and Kent. Recent sales have included a $25 million transaction in Foxhall and a $10.5 million deal in Georgetown. Demand in the D.C. luxury market has increased by 18% year-over-year, with Coombe observing that parts of the broader DMV area are also experiencing a rise in luxury demand.

    Beyond high-end homes, townhouses and condos have become highly sought after. The "government employee situation" is also contributing to the dynamic nature of the D.C.-area real estate market. Trump's order to bring federal workers back into the office full-time has led to an interesting shift, with some employees leaving their jobs or starting in-person work while others are moving back to the area due to policy changes.

    While it remains to be seen whether the "Trump Bump" will continue, Coombe notes that homebuyers have become accustomed to the current mortgage rates and that the luxury market has been largely unaffected. In fact, more than 60% of buyers in this category since November have paid "all cash" or "heavy cash." The D.C. area's ultra-luxury market has also seen significant activity, with five sales worth at least $10 million in 2024 totaling $67.85 million combined.