Washington

DCWashington-Arlington-Alexandria, DC-VA-MD-WV

Real Estate Market Analysis

Q3 2025 Report
$700,000 (June 2025)
Median Home Price
~670,000 (2024 estimate)
Population
$101,027 (2024 ACS estimate)
Median Income
DC Public Schools: 6/10 (GreatSchools aggregate)
School District Rating

Market Overview

Property Values

$700,000 (June 2025)
Median Home Price
$538 (June 2025, Redfin)
Price per Sq Ft
-1.5% (June 2024–June 2025)
YoY Change

Market Performance

Days on MarketAverage 28 days (June 2025, Redfin)
Market TypeTransitioning toward balanced; increased inventory, moderate price growth
Months of SupplyData not specified, but inventory up 42.2% MoM (June 2025)

Sales Activity

Sales Volume3,315 homes for sale in June 2025 (+42.2% MoM)
Metro AreaWashington-Arlington-Alexandria, DC-VA-MD-WV
Population~670,000 (2024 estimate)

Economic Indicators

Employment & Growth

Unemployment Rate~4.6% (2025 estimate, BLS)
Job Growth Rate~1.2% (2025 estimate, DC.gov)
Median Household Income$101,027 (2024 ACS estimate)

Major Employers

  • Federal Government
  • District of Columbia Government
  • Georgetown University
  • MedStar Health
  • Amazon (HQ2 nearby)

Demographics

~670,000 (2024 estimate)
Population
34.2 years (2024 estimate)
Median Age
Stable to slight growth; net migration positive but modest
Population Growth
56% bachelor’s degree or higher (2024 ACS)
Education Level

Family Composition

~40% single-person households; ~25% families with children

Key Industries

GovernmentLegal ServicesEducationHealthcareTechnology

Education

School District

DC Public Schools: 6/10 (GreatSchools aggregate)
District Rating

Top Schools

  • School Without Walls High School
  • Benjamin Banneker Academic High School
  • Janney Elementary

Higher Education

  • Georgetown University
  • George Washington University
  • Howard University
  • American University

Infrastructure & Development

Major Projects

  • Frederick Douglass Memorial Bridge replacement
  • DC Streetcar expansion
  • Southwest Waterfront (The Wharf) Phase II

Transportation

  • Metro Silver Line extension (recently completed)
  • Bus Rapid Transit (BRT) pilot routes

Planned Developments

  • Hill East redevelopment
  • St. Elizabeths East Campus mixed-use project

Lifestyle & Amenities

Recreation

  • Rock Creek Park
  • National Mall
  • Anacostia Riverwalk Trail

Dining & Entertainment

  • 14th Street Corridor
  • Union Market
  • The Wharf

Cultural Attractions

  • Smithsonian Museums
  • Kennedy Center
  • Arena Stage

Investment Analysis

Investment Opportunities

  • Rising inventory creates more options for buyers and investors
  • Moderate price appreciation (3-5% forecast for 2025)
  • Strong rental demand due to transient workforce

Growth Outlook

Moderate, with 3-5% appreciation forecast for 2025 as market balances

Market Risks

  • Potential for further price softening if inventory continues to rise
  • Interest rate volatility
  • Policy changes affecting federal employment

Rental Market

Strong; high demand for multifamily and single-family rentals, especially near transit and employment centers

Marketing Intelligence

Target Demographics

  • Young professionals
  • Government employees
  • Investors
  • Relocators from NYC/LA

Marketing Channels

  • Zillow, Redfin, Realtor.com
  • Social media (Instagram, Facebook)
  • Local real estate events

Pricing Strategies

List slightly below recent comps to generate interest and multiple offers

Common Objections & Response Strategies

Objection: Prices are too high for my budget.

Response Strategy:

Highlight increased inventory, negotiate seller concessions, and explore first-time buyer programs.

Objection: Interest rates are volatile.

Response Strategy:

Connect buyers with trusted lenders for rate lock options and explain long-term value in DC’s stable market.

Objection: Competition from cash buyers.

Response Strategy:

Advise on strong offer terms (flexible closing, escalation clauses) and pre-approval to compete.

Professional Recommendations

1

Advise sellers to price competitively and invest in staging to stand out in a higher-inventory market.

2

Educate buyers on negotiation opportunities and available incentives.

3

Target marketing to young professionals, government workers, and relocators.

4

Stay informed on local policy and infrastructure changes impacting demand.

5

Leverage digital marketing and virtual tours to reach remote buyers.

Competitive Analysis

Comparable Markets

  • Boston, MA
  • San Francisco, CA
  • New York, NY

Market Positioning

Premium urban market with resilient demand, but less volatile than coastal peers

Competitive Advantages

  • Stable employment base (federal government)
  • High educational attainment
  • Strong rental demand

Price Comparison

Median price ($700K) is lower than NYC/SF, higher than most US metros

Investment Metrics

4.5–5.5% (multifamily, 2025 estimate)
Cap Rates
~4% gross yield (citywide average)
Rental Yields
~20:1 (2025 estimate)
Price-to-Rent
Positive in select submarkets with high rental demand
Cash Flow
3–5% for 2025
Appreciation

Buyer Journey Insights

First-Time Buyers

More options due to higher inventory; affordability still a challenge, but down payment assistance available.

Move-Up Buyers

Easier to sell and buy simultaneously; more leverage in negotiations.

Downsizers

Condo and townhome supply increasing; urban amenities appeal.

Investors

Strong rental demand, especially near universities and transit; moderate cap rates.

Relocators

DC attracts professionals from NYC, LA, and other metros; highlight walkability and job stability.

This city analysis was generated using comprehensive market data and AI intelligence.

Market conditions change rapidly - consult with local real estate professionals for the most current information.

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