🌵DOGE Layoffs Lead to Listings in the Valley of the Sun

Federal layoffs are shaking up housing markets, creating more inventory and fresh opportunities for buyers and sellers here in Arizona.

🐾 How DOGE Layoffs Are Impacting Federal Employees—and What It Means for Your Home

You may have heard about the recent layoffs happening at the 🔗Department of Government Efficiency (DOGE). Since early 2025, nearly 280,000 federal jobs have been cut across agencies like Education, Social Security, and Veterans Affairs. If you live in areas with a lot of federal workers—like the D.C. metro—or are watching Arizona’s housing market, here’s what you need to know.

🏠 What’s Happening in the D.C. Area and Across the Country?

The D.C. metro area has been hit hardest by the recent wave of federal layoffs, with early retirements and job cuts leading to a surge in home listings. According to 🔗Axios, listings in the region are up roughly 25% year-over-year—well above the national average of 14%. As a result, home prices are softening slightly, giving buyers more leverage than they've had in recent years.

But D.C. isn’t alone. Other areas with large numbers of federal employees—like parts of Maryland, Virginia, and even hubs like Colorado Springs and San Antonio—are also seeing an uptick in listings and shifting market dynamics. Nationwide, these layoffs are contributing to a broader increase in housing inventory and cooling price growth in specific regions, particularly where federal agencies and contractors play a big role in the local economy. While the overall U.S. housing market remains competitive, these pockets of change are creating unique windows of opportunity for well-prepared buyers.

🌵 What This Means for Arizona

As federal job cuts ripple beyond the D.C. area, Arizona is starting to feel the effects—though in more indirect ways. While we’re not seeing mass federal layoffs based here, the funding cuts tied to DOGE are having a ripple effect. Arizona’s Department of Economic Security is laying off nearly 470 employees due to federal funding shortfalls, and state agencies are preparing for further impacts as budgets tighten 🔗(ABC15).

At the same time, we’re seeing more movement in the local housing market as remote federal employees—many of whom had relocated to Arizona during the pandemic—face pressure to return to D.C.-based offices. A recent 🔗Axios Phoenix report highlighted how new executive orders are rolling back remote work, which could prompt some to sell and move back east, or voluntarily resign and stay, opening up more housing inventory and shifting demand dynamics.

All of this is leading to a market that feels a little more balanced—more listings, slightly slower price growth, and opportunities for both buyers and sellers to make strategic moves. If you’re considering your next step, now’s a smart time to check in. Let’s talk through what these changes might mean for your situation.

💡 What This Means for You

• Thinking of selling? Now’s the time to price your home right and highlight features that attract remote workers or families looking for space.

• Ready to buy? More homes on the market mean more choices—and a better chance to find your dream home at a fair price. But don’t wait too long; interest rates can change!

• Need mortgage help? Whether you’re refinancing or relocating, I’m here to guide you with loan options designed for today’s changing work and housing landscape.

📞 Let’s Chat!

If you’re feeling uncertain or just curious about how these changes could affect your plans, don’t hesitate to reach out. Together, we can figure out the best move for your unique situation.