AUSTIN, TX — As the federal government shutdown stretches into its second month, early data from Realtor.com’s October 2025 Monthly Housing Report shows subtle but measurable slowdowns in real estate activity across U.S. markets with large concentrations of federal employees.
The analysis found that metro areas such as Washington, D.C., Virginia Beach, Oklahoma City, and Baltimore—where federal workers account for a higher share of local employment—are experiencing small but notable declines in buyer engagement and new listings. Washington, D.C., saw an 11.5% drop in home search activity and a 13.9% decline in new listings compared with September. Virginia Beach, Baltimore, and Oklahoma City reported similar, though less severe, pullbacks.
“At this stage, the housing market effects of the federal shutdown appear localized and modest,” said Danielle Hale, chief economist for Realtor.com. “In markets like Washington, D.C., Virginia Beach, Oklahoma City, and Baltimore, we’re seeing buyers take a brief step back as uncertainty persists. However, home prices and inventory trends in these areas continue to move in line with broader national and regional patterns, suggesting that the overall market remains steady for now.”
The report shows that while activity has slowed in federal-heavy metros, nationwide housing trends remain largely unchanged. The median U.S. list price in October was $424,200—flat month-over-month and up just 0.4% from a year ago. Homes spent a median of 63 days on the market, five days longer than in October 2024, marking the 19th straight month of slower sales.
Despite the national cooling trend, inventory growth continues to give buyers more options, with active listings up 15.3% year-over-year. However, that growth has decelerated for five consecutive months, signaling that the long-awaited housing supply recovery may be losing momentum.
“Buyers have more choices than they did a year ago, but the pace of new listings and pending sales has slowed,” Hale said. “Sellers are pricing with more flexibility, and price cuts remain common, showing a gradual shift toward a more balanced market.”
Realtor.com’s analysis notes that prolonged uncertainty from a federal shutdown could deepen these effects, particularly in markets where government paychecks and contracts drive local economies. For now, however, the data suggests only modest, localized disruptions rather than a nationwide slowdown.
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