I
n the nation's capital, a perfect storm is brewing in the housing market. The Trump administration's return-to-office mandates for federal workers have sparked a surge in home buying, but uncertainty about impending job cuts has left others hesitant to make a move. According to Redfin agents, this dichotomy is playing out on the ground.

    In Washington D.C., where government workers are concentrated, home prices have taken a hit. Median sales prices plummeted 8.6% in January compared to last year, with homes selling for $560,000 on average. While overall sales were up from last year, homes spent about a week longer on the market.

    The uncertainty surrounding federal job cuts is having a ripple effect on the housing market. Redfin Premier agent Stuart Naranch shared a story of a couple who bought their dream home with him just a few years ago but are now considering listing it due to concerns about commuting to in-person work. "They want to be closer to public transportation," he explained.

    Meanwhile, the Department of Government Efficiency (DOGE) is on a mission to cut $2 trillion from the federal government budget by eliminating programs and trimming the workforce. The buyout offer has already been accepted by around 65,000 employees, and the number of deferred resignations is growing rapidly.

    As the deadline for return-to-office orders approaches, Redfin Premier agent Jo Chavez reports that some clients are selling their homes specifically due to anticipated restructuring of government jobs. "I've met with a few people who are selling because they're worried about losing their job," she said.

    The situation has become so dire that federal workers gathered outside the Department of Health and Human Services in D.C. on Friday to protest the cuts, carrying signs that read "No One Voted For Elon Musk" and "Federal Workers Defy DOGE." The uncertainty surrounding federal jobs is casting a shadow over the housing market, leaving many wondering what's next.