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ederal workers who have been forced back to the office full-time are facing a challenging housing market. Those who sold their homes and moved away when remote work became an option are now struggling to find affordable housing in the area.
According to real estate agents, return-to-office orders have actually increased demand for housing, despite concerns that the federal workforce reduction could impact the local market. Kelly Hasbach of Compass's Vienna office reports that government employees who sold their homes and moved elsewhere are now scrambling to find new places to live, but everything is more expensive.
The average selling price for a detached house in the Washington area has risen by nearly 25% since 2020, making it difficult for returning workers to afford housing. Many are prioritizing listings near Metro stations and parking lots due to uncertainty about their work locations, as much federal office space was shuttered during the pandemic.
Some federal workers are rethinking their priorities in light of the uncertainty. At an open house in Silver Spring, a couple mentioned that they were returning from another state where they'd bought a home, but weren't interested in buying property in the area. They're planning to rent and keep their other house, as they have no idea if they'll still have their jobs in two weeks.
