Intelligent Investment

Washington, D.C. 2025 U.S. Real Estate Market Outlook Midyear Review

August 5, 2025 10 Minute Read

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Executive Summary

Cautious optimism at the start of 2025 was upended by sharp federal government cutbacks that created heightened uncertainty in Washington, D.C. through H1 2025. Some of these challenges emanated from broader volatility in the macroeconomy, but the greater drag was due to the federal government. That sector reduced its employment in the city by roughly 6,000, cut contracts and grants by 12% (or $389M) and promised to speed the pace of its real estate portfolio contraction. In H2 2025, some of the challenges from H1 2025 will persist and may even amplify. At the same time, various favorable trends should provide an element of stability and growth, ushering increased optimism for 2026.

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Report

2025 U.S. Real Estate Market Outlook Midyear Review

July 30, 2025
While economic uncertainty tempers growth, fundamentals remain healthy with pockets of outperformance across the industry.
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