February 2025: Post-Election Resilience in Greater Washington May Help Soften Current Disruption

Greater Washington’s vibrancy continued to improve impressively post-election and through the end of 2024, ascending to a level of 73.4. This was not only 2.5% higher than the previous month, but 11.5% higher than one year ago. Driving the index notably higher was improved performance in the region's commercial and residential real estate sectors, which, while still far from ideal, showed modest improvement.

Aside from the region’s more challenged office real estate sector, the industrial warehouse, retail, hotel, and multifamily sectors showed promising signs of demand, construction (e.g., industrial warehouses) and investment sales pricing and activity.

In the single-family for-sale housing market, average prices rose for the 22nd consecutive month— while sales volume improved yet again, increasing by 26% compared to one year ago. However, reflecting a market still affected by higher interest rates, home sales volume remains 45% lower than it was three years ago.

Other sub-composite indices (labor market, mobility & visitation, innovation and confidence) of the REVIVE index continue to show general stability.

Looking forward, it is notable that the Trump administration is moving forward quickly on multiple fronts. With no precedent to guide us, it is difficult to predict the implications of the drastic policy changes. The region’s recent momentum in vibrancy suggest there may be some cushion against potentially acute challenges ahead. We will be monitoring the vibrancy of the region closely as 2025 unfolds.