Discussion Paper

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


Abstract: 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.

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Provider: Federal Reserve Bank of Richmond

Part of Series: Regional Matters

Publication Date: 2026-05-21