A viral social media post claims that federal layoffs have triggered a mass exodus from Washington, D.C., flooding the market with 4,000+ new listings and signaling a housing collapse. They are also saying that the Median DC housing value went down by almost $140,000 practically overnight. The reality? The data tells a much different story.
The problem is that it’s just about all made up. Apparently some of the images were altered, they conflated the Downtown proper DC market with the DC metro market (suburbs). The reality is that we have not felt any real change or shift in an otherwise strong sellers market.
The Numbers Don’t Add Up
Bright MLS, which tracks housing data, reports that December 2024 saw 2,126 new listings—the lowest for that month in over 20 years. In early February 2025, 2,829 new listings hit the market, nearly identical to the 2,820 from last year. Simply put, there is no sudden surge in inventory. February is the new Spring and new inventory will hit the market in higher numbers from now through May or June.
Viral TikTok and X posts with millions of views exaggerate the situation, falsely linking new listings to political affiliations and layoffs. Furthermore, the D.C. market has been operating with less than a month of inventory for years, meaning even a modest rise in listings wouldn’t shift the market drastically.
D.C. Proper: A Market Struggling for Years
Washington DC’s market has been slow long before these layoffs. DC Condos in particular have seen zero appreciation over the last 5 years and the same goes for other less established neighborhood row homes and single family homes. The only bright spot in DC are the Single Family in NW DC that has seen about a 20% appreciation since 2020.
The Suburbs Remain Resilient
While D.C. proper struggles, suburban markets in Northern Virginia and Montgomery County remain stable. I wrote about this a couple weeks ago, it’s definitely a sellers market.
Should You Be Worried?
Not necessarily. Federal layoffs are real, but they don’t equate to an immediate housing crisis. Federal employees make up just 9% of the workforce, and many have severance packages or alternative job opportunities. The bigger issue? Affordability. High mortgage rates and economic uncertainty are keeping some buyers on the sidelines, slowing sales but not causing a crash.
The Bottom Line
The viral housing market panic is largely unfounded. D.C.’s market has been slow, but there’s no sudden flood of inventory or crash in prices. The suburbs remain strong, and while builder sentiment is worth monitoring, the market isn’t imploding.
If you’re buying or selling, focus on real data—not social media rumors. Need expert guidance? Let’s talk about what’s best for your situation.
