Is The D.C. Region's Housing Market Being Impacted By Federal Employment Changes?

Published Tuesday, February 18, 2025
by Bright MLS

WASHINGTON -- Recent reports are suggesting there has been a surge of new listing activity in the D.C.-area housing market, which some are pointing to as evidence of an exodus of federal employees from the region.

At Bright MLS, we have the most comprehensive data on listings of homes for sale. Nearly all homes that are sold are listed on the multiple listing service (MLS), which gives us the most reliable and accurate data on housing market conditions.

Based on our listing data, we’re not seeing any evidence of a surge of listing activity in the Washington, D.C., region. In the broader D.C. region, defined by the counties and cities below, there were 2,829 new listings that came onto the market in the two-week period between February 3 and February 16, 2025. This is virtually unchanged from the same two weeks last year when there were 2,820 new listings on the market.

In the overall Bright MLS footprint, which extends from New Jersey to Central Virginia, new listings were down by just 1% this year compared to last year.

This listing data includes both active listings as well as homes that are “coming soon” and is the best measure of new listing activity in the D.C.-area housing market. We’re simply not seeing any inventory surge.
 

New Listings by County/City

  1st half of February  
County/City 2024 2025 Change
Alexandria City, VA 87 93 7%
Arlington County, VA 112 110 -2%
Calvert County, MD 44 44 0%
Charles County, MD 106 106 0%
Fairfax City, VA 13 14 8%
Fairfax County, VA 489 453 -7%
Falls Church City, VA 4 5 25%
Frederick County, MD 150 120 -20%
Fredericksburg City, VA 15 10 -33%
Loudoun County, VA 182 226 24%
Manassas City, VA 18 14 -22%
Manassas Park City, VA 9 8 -11%
Montgomery County, MD 397 398 0%
Prince George’s County, MD 397 398 0%
Prince William County, VA 206 214 4%
Spotsylvania County, VA 81 103 27%
Stafford County, VA 87 61 -30%
Washington, D.C. 423 452 7%
Greater D.C. region total 2,820 2,829 0%
Bright MLS overall 9,653 9,534 -1%

 
In some local markets we do see an uptick in new listings activity this year, but nothing about the geographic pattern of listing activity suggests that it is related to homeowners who are or were federal government employees. For example, new listings were 27% higher in Spotsylvania County, Virginia, but were 30% lower in nearby Stafford County. Listings were up by 7% in Alexandria but were down by 2% in Arlington.

Although the Washington, D.C., metro area has more federal government workers than any other metropolitan area, federal government employees make up only 9% of the region’s total workforce, according to data from the U.S. Office of Personnel Management. Reductions in the overall federal workforce and back-to-the-office requirements may ultimately have some localized impacts on housing market activity; however, so far, there is nothing to suggest that those changes are having a substantial impact on the broader D.C.-area housing market.