DC Luxury Real Estate Update: How the Administration Change is Reshaping the $3.5M+ Market

Every presidential transition brings significant shifts to DC’s luxury housing market, and this cycle is no exception. The $3.5M+ market is experiencing both an influx of new buyers and an increase in high-end listings as political transitions influence where high-net-worth individuals choose to reside.

More Luxury Listings as Outgoing Administration Figures Relocate

As the administration changes, high-ranking officials, lobbyists, and executives tied to the outgoing leadership are beginning to list their homes and move elsewhere. Many are transitioning to private-sector roles or returning to their home states, leading to new inventory in prestigious neighborhoods like Kalorama, Georgetown, Palisades, and McLean.

For luxury buyers, this means a rare opportunity to purchase in historically exclusive areas as more homes come on the market—some of which haven’t been available for years.

New Power Players Entering DC & Driving Demand

At the same time, a new wave of government officials, political donors, and business leaders with ties to the incoming administration are securing residences close to decision-making hubs.

Neighborhoods in Northwest DC, Bethesda/Chevy Chase, MD, and Northern Virginia are seeing heightened interest from buyers looking for privacy, security, and proximity to the White House and Capitol Hill.

Many of these buyers are seeking historically significant or architecturally unique properties, reinforcing DC’s reputation as one of the most exclusive luxury markets in the country.

How This Balances the Market

• Luxury Home Inventory is Rising – More high-end listings are coming to market, giving buyers more options.

• Pricing Trends Depend on Demand – If more buyers move in than sellers move out, we could see prices remain strong or even rise in certain neighborhoods. Conversely, if more sellers leave than buyers enter, we may see price softening in some areas.

• Diplomatic & Political Appeal Keeps DC Luxury Competitive – The city’s unique position as a political, diplomatic, and international business hub means demand for luxury homes remains steady, even with shifting political tides.

The Bottom Line

DC’s luxury market is as dynamic as ever, with high-profile listings hitting the market while new buyers aggressively compete for prime real estate. The $3.5M+ sector remains highly active, and for buyers and sellers alike, this administration change presents a unique window of opportunity.

Luxury ($3.5M+) Housing Market Snapshot Comparison (Nov. 2024–Jan. 2025 vs. Nov. 2023–Jan. 2024)

Total Market Activity:

• Total Homes Listed:  +54% (134 vs. 87)

• Total Listed Volume:  +49% ($787.8M vs. $529M)

Washington, DC:

• Homes Listed:  +129.6% (62 vs. 27)

• Listed Volume:  +88.8% ($340M vs. $180M)

• Homes Sold:  +43.5% (33 vs. 23)

• Sold Volume:  +63.4% ($215.7M vs. $132M)

Maryland (Montgomery County):

• Homes Listed:  +29.4% (22 vs. 17)

• Listed Volume:  +64.6% ($123.9M vs. $75.3M)

• Homes Sold:  +133.3% (14 vs. 6)

• Sold Volume:  +57.6% ($60.9M vs. $38.7M)

Northern Virginia (Fairfax, Arlington, Alexandria):

• Homes Listed:  +16.3% (50 vs. 43)

• Listed Volume:  +18.4% ($323.8M vs. $273.6M)

• Homes Sold:  +4.5% (23 vs. 22)

• Sold Volume:  +31.7% ($130.8M vs. $99.3M)

Market data reflects this shift:

• Total market activity surged, with a 54% increase in homes listed (134 vs. 87) and a 49% rise in total listed volume ($787.8M vs. $529M).

• Washington, DC saw the most significant growth, with a 129.6% increase in homes listed (62 vs. 27) and an 88.8% jump in listed volume ($340M vs. $180M).

• DC home sales climbed 43.5% year-over-year (33 vs. 23), while sold volume rose by 63.4% ($215.7M vs. $132M), reflecting growing demand among buyers positioning themselves closer to downtown DC.

• Montgomery County saw steady growth, with a 29.4% rise in listings and a 133.3% increase in home sales, showing strong buyer interest in suburban areas.

• Northern Virginia experienced moderate growth, with listings up 16.3% and sales volume increasing by 31.7%, maintaining steady demand despite a more gradual increase in home sales (4.5%).

Final Thoughts

The DC luxury real estate market is undergoing a significant shift as political transitions bring new players into the area while longtime residents move on. With luxury home inventory rising and competition increasing among high-net-worth buyers, now is a crucial time for both buyers and sellers to assess their strategies. If you’re considering entering the DC luxury market, whether to purchase or list, now is the time to act!