Mixed Signals: A Housing Update for the Washington, D.C., Metro Area

Regional Matters

May 21, 2026

Introduction

The Richmond Fed monitors economic developments within the Fifth District. Recent changes in federal workforce employment and federal private contractors have motivated an ongoing focus on the Washington, D.C. metropolitan statistical area (D.C. MSA), which includes parts of Maryland, Virginia, and West Virginia. Over the last 12 months, the federal workforce in the D.C. MSA shrunk by approximately 60,000 employees. Simultaneously, private employment in the D.C. MSA decreased by nearly 56,000 people¹. With the decrease in the workforce, the region experienced a noticeable softening in the D.C. metro housing market from pandemic highs². Listings and sales grew at very different rates, homes sat longer on the market, and prices dropped for an increasing number of listings - even as home prices remained strong.

Listings and Sales Counts Are Becoming More Imbalanced

Some of the most notable changes in the D.C. MSA housing market can be observed by examining the number of total listings versus the number of sales. Compared to March 2024, total listings in March 2026 in the D.C. MSA were up nearly 50 percent, compared to only a 7 percent increase in sales. In addition, listings were only up 27 percent nationally. Listings in 2026 are the highest they've been in the last four years for both the United States and the D.C. MSA.

This imbalance between growth in listings versus sales may be the result of residents trying to leave the area: According to the U.S. Census Bureau's Population and Housing Unit Estimates, from July 2024 to July 2025, the D.C. MSA lost, on net, around 24,000 residents. This is a notable increase compared with the previous year, which saw a positive net domestic migration of around 2,200 residents. In other words, residents left the D.C. MSA at a much higher rate in 2025 than they did in 2024.

Homes in the Washington, D.C., Metro Area Are Sitting on the Market Longer, and List Prices Are Dropping for an Increasing Number of Listings

Another indicator that demand might be cooling in the D.C. MSA is how long homes are staying on the market. Currently, homes in the D.C. MSA are staying on the market for an average of 50 days versus 35 days in 2024 - a 65 percent increase. Generally, homes in this area sell much more quickly than in the United States on average; while this is still true, the mean days until pending in the United States only increased by 39 percent in this same period. In the D.C. MSA and nationwide, the mean days that homes are sitting on the market is the highest it's been in the last four years.

The Median Home Sale Price Is Continuing to Rise in the D.C. Metro Area

Despite the increased number of listings, fallen sales, and price cuts, median list prices in the D.C. MSA have only slightly decreased (2 percent) since 2024, and median sale prices have actually increased by 12 percent. The median sale price in the D.C. MSA currently exceeds the median list price - for the first time since 2022 - by 8 percent. In comparison, both sale and list prices have increased in the United States since 2024 (1percent and 8 percent, respectively), but median home sale prices are still 7 percent less than median list prices.

Conclusion

The D.C. MSA housing market shows mixed signals with many measures pointing toward market cooling as more homes are listed, homes stay on the market longer, and sellers cut prices. Despite this, home sale prices remain robust with positive year-over-year sale price increases indicating that despite a supply increase, prices are still solid. Perhaps we are seeing the beginning of a slowdown in the D.C. market, but the signals are mixed, and it is too early to draw any definitive conclusions. As an important part of the Fifth District economy, we will continue to monitor economic developments and housing markets in the D.C. region.

Views expressed are those of the author(s) and do not necessarily reflect those of the Federal Reserve Bank of Richmond or the Federal Reserve System.