With the second Trump administration set to take office in just a week, concerns are mounting over a potential slowdown in the Washington, D.C., housing market following the inauguration.

Local news outlet WTOP reported on January 13 that "the Washington housing market could face a downturn due to DOGE (Department of Government Efficiency)." The article cited predictions from veteran real estate brokers about the potential impact of widespread federal workforce reductions.

The Department of Government Efficiency (DOGE), spearheaded by Elon Musk, is reportedly planning significant layoffs among federal employees. Currently, 141,000 federal workers are based in Washington, D.C., with a total of 283,000 employees in the broader metropolitan area.

A large portion of these federal employees are homeowners. If layoffs or relocations occur, their properties, along with those of others fearing declining home values, could flood the market. This influx of listings could lead to a housing market slump, according to experts.

A real estate broker with over 30 years of experience noted, "If a wave of homes hits the market at once, inventory will surge, potentially leading to a market downturn. However, there is strong demand from prospective buyers, so any slowdown in the market is unlikely to persist for long."

Elon Musk’s prior decisions add weight to these concerns. After acquiring Twitter in 2022 for $44 billion, Musk famously cut 80% of its workforce. Analysts believe the Trump administration’s planned federal layoffs could follow a similarly aggressive trajectory.

Reporter: Park Kwang-deok