Metro Washington DC Housing Market In Crisis As Foreclosures Skyrocket Due To Government Shutdown

The Metro Washington DC housing market is in chaos as the federal government shutdown drags on.

New data reveals double-digit drops in home listings.  Also buyer interest across the area has dropped.

Realtor.com reports that new home listings have dropped 11% since the government shutdown began on October 1st.

The shutdown has affected 10% of the DC metro workforce which is made up federal employees.

Sotheby’s International Realty SVP Corey Burr told the media:

“Right now we’ve got the highest inventory in DC for the last five years. It’s the longest days on market in the last five years, at an average of 47 days for DC proper. That’s 50 days longer than any other area in the region.”

Burr also said the combination of the DOGE worker purge and the shutdown has frozen many buyers in place.

The Greater Capital Area Association of Realtors said the median list price was 13.3% higher in September 2025. However, those figures only reflect listings at the higher end of the market. Thus, those listings are bringing up the average.

The average DC home value is currently $583,202.

It’s Not Only The Metro Washington DC Housing Market In Crisis

It’s not only the housing market that looks bleak in DC.

Bank of America reports that DC consumers are not spending as much as they normally would.

Total card spending per household is down more than 1% since the shutdown began.

Republicans and Democrats failed to pass a new budget prior to October 1st. Thus, the government was forced to shutdown.

That put numerous federal programs and public services on hold. As a result, hundreds of thousands of federal workers are currently not receiving a paycheck.

The longer the shutdown continues, the more damage the DC and national economies will see.

DC lost nearly $50 million in revenue during the 2019 government shutdown.

Read More About Washington DC Housing And Foreclosure Crisis On MFI-Miami.com.