As the Trump administration’s newly established Department of Government Efficiency continues to cut jobs in Washington D.C., some have wondered if that would negatively influence the local employment and residential market. Well, not necessarily, at least, according to a Washington D.C. multifamily outlook report published by Marcus & Millichap.
It lists a few reasons why. For one, this isn't the first time a Presidential administration has cut back on the government. The Clinton administration did this; from 1992 to 2000 the federal workforce dropped from 2.3 million to 1.9 million, according to Marcus. And yet, total employment in Washington D.C. wound up increasing by 535,0000 over that period. So far, DOGE has fired more than 200,000 probationary federal workers country-wide, with 75,000 civilian employees accepting buyout offers. However, Marcus noted that Washington D.C. hosts one of the strongest job markets in the nation thanks to its 3.2 percent unemployment rate in 2024 being one of the lowest levels in the country.
The strong local workforce leads to another key fundamental — income. Only San Francisco's household earnings exceeded the nation capital's total of $131,000 last year.
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