The Department of Government Efficiencies’ (DOGE) efforts to reduce the federal government’s workforce will likely have consequences for the housing market in the Washington, DC metropolitan area, also known as the DMV. Eighteen percent of residents in the DMV who were employed by the federal government in 2023 have a mortgage (10%) or are renters (8%) (see Table 1).
Fourteen percent of Black women in the DMV work for the federal government and have mortgages, compared to 7 percent who are renters(see Table 1). Eight percent of Asian women in the DMV work for the federal government and are renters, just slightly higher than the percentage of renters, 7% (see Table 1). Depending on the demographic distribution of people who are fired, Asian and Black women are more vulnerable to negative housing market consequences.
Renters are more likely to become unhoused or move to neighborhoods with lower rents, which is often correlated with fewer resources. For homeowners, this may mean a decrease in home values, which has consequences for generational wealth. The data suggest that housing prices began decreasing 12 months ago. Moreover, housing prices in other metro areas have also been decreasing. However, the concentration of federal employees in the DC metro area, coupled with DOGE firings and early retirement incentives, will cause demographic shifts and repercussions for the economic well-being of millions of Americans.
Table 1. Distribution of Federal Workers in the DC Metro Area by Ownership Status
Source: 2023 American Community Survey, U.S. Census Bureau
