Elon Musk and Donald Trump’s efforts to reduce the size of the U.S. federal workforce have reportedly many affluent liberals unsure about their future, causing listings in the Washington, D.C., home market to soar and prices to plummet.
The housing market in Washington, D.C., is being directly impacted by Trump’s return to the White House.
The demand for properties in the city increased after the president issued an executive order requiring federal employees to return to work or risk losing their jobs.
At the same time, federal employees are unsure of their future and whether they will even require a property in the area due to the widespread layoffs recommended by the Department of Government Efficiency (DOGE), which is led by Musk.
In addition to seemingly being in a rush to sell their homes in the city, some homeowners in Washington, D.C., are also prepared to lower their prices in order to entice hesitant purchasers.
426 of the 2,400 houses that are presently for sale on Zillow have had their prices lowered.
A 1,138-square-foot condo with two bedrooms and two bathrooms in Southwest Washington was offered for $349,900 on Zillow after a $10,000 reduction, and a 1,574-square-foot house with two bedrooms and two bathrooms in Northwest Washington was listed for $1,390,00 after the seller lowered the price by $60,000.
According to a recent Redfin research, the Trump administration’s widespread federal employee layoffs were disrupting the housing market in Washington, D.C., and they will inevitably do the same in towns where there is a significant federal employee population.
More layoffs within the U.S. federal workforce are anticipated in the upcoming months, as reducing the size of the federal government continues to be a top priority for the Trump administration.
Buyers may eventually gain from a softening of house prices in the city and the larger metropolitan area as a result of the chaos in the Washington, D.C., market.
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