Mass Federal Layoffs Just Hit—Could This Be the Start of a National Housing Crash?
Ken McElroy Show
Ken McElroy
4.8 • 692 Ratings
🗓️ 18 February 2025
⏱️ 34 minutes
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Summary
Ken & Danille discuss Washington, DC's housing market and how it is facing a major shakeup as federal workforce cuts and office lease cancellations flood the market with new listings. With home values dropping 20% in just three months, we break down how these changes could lead to panic selling, a struggling real estate sector, and long-term economic consequences for the capital.
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Transcript
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| 0:00.0 | listings have doubled in the D.C. area since Doge has started firing federal workers. |
| 0:07.6 | So today we're going to discuss how that's going to affect D.C. and how that possibly could |
| 0:12.1 | implicate the rest of the nation. Yeah, it's just the beginning. I'm telling you, now, obviously, |
| 0:17.7 | D.C. is going to be the most impacted because it's regional and and i think i i read like |
| 0:24.3 | 11 or 12 percent of everyone in dc is a federal worker of some sort right so obviously it's going to affect them |
| 0:31.4 | first and i think there were i read 75 to 80 000 people said they were just going to resign as part of that deadline. |
| 0:40.4 | But now come the next wave. |
| 0:42.5 | Well, yeah, on Friday, they let go of another 9,000 or 10,000 people. |
| 0:47.0 | And, you know, in D.C., you know, there's 8,000 homes listed for sale. |
| 0:51.8 | 4,000 of those are in the last 30 days. What's good to know is a lot of |
| 0:56.3 | these are homes that are over a million. So that is good to know because it only affects part of |
| 1:02.2 | that market. But then, you know, federal workers are all throughout the country. Well, the other thing |
| 1:07.9 | I found was really interesting as we were digging into this over the |
| 1:11.6 | weekend was how high they're paid. Yeah, the average federal worker makes $106,000. That's a lot. |
| 1:18.3 | Mm-hmm. So, and, and then, of course, we were having fun with this. We went back and said, |
| 1:23.1 | okay, how many federal workers were hired in 23 and 24. Now, whether you agree with this or not, |
| 1:29.5 | it's going to happen anyway. So I think we have to look at it from a real estate perspective. |
| 1:35.5 | And certainly we're seeing a, this is a very short term impacts of far. Like this is the very |
| 1:41.4 | beginning. This is the first or second any. It is. I think |
| 1:44.7 | something interesting to note is 18% of the new jobs in 2024 came from the federal government |
| 1:50.7 | and they were hiring about 30,000 people per month. Yeah. So while that may have propped up the |
| 1:56.9 | economy the last couple of years, because the government was the biggest employer under |
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