Rising D.C. Uncertainty Hits "Stressed" Homebuyers, Dining Demand
The government shutdown has now entered its 23rd day, after the Senate on Wednesday once again failed to pass a House-approved funding bill – the 12th such attempt. Democratic Sen. Jeff Merkley of Oregon led a marathon speech on the Senate floor that lasted nearly 23 hours.
Republicans and Democrats continue to battle for narrative control. This time, polling data suggest President Trump holds an advantage, as he has anticipated and countered left-wing disinformation campaigns. His administration also appears less likely to yield to unhinged leftist demands, such as funding healthcare subsidies for illegal aliens.
Earlier this week, Goldman analysts, led by Chief Economist Jan Hatzius, explained the five drivers pressuring the labor market, including "Reduction in government hiring and funding."
Drilling down into the District of Columbia, where nearly one in four workers has a federal job, the government shutdown appears to be "rattling" prospective home buyers, according to a new Bloomberg report.
Showings were already muted since August, when President Trump deployed National Guard troops to clean up violent crime sparked by failed criminal justice reforms by Democrats.
Lisa Sturtevant, Chief Economist at Bright MLS, also confirmed this trend of a souring mood among prospective homebuyers. "We're seeing the impact of the uncertainty we've been living with for six months," she said, adding, "People are stressed."
Marc Dosik, who leads the Fed City Team of agents at Century 21 Redwood Realty, warned about the mounting "uncertainty" in the nation's capital.
"I've got more listings than I normally hold." Buyers are still out there, but they're looking for something special, Redfin Rebecca Love said, adding, "Most people aren't flat out stopping their search. They are looking for much more perfect places now because they're being cautious with their funds."
To be fair, MLS's weekly housing report in the D.C. metro area shows that listings were already above trend this year…
Separately, restaurant data from OpenTable shows that online reservations in the D.C. metro area, a proxy of dining demand, have noticeably slumped since National Guard deployment, compounded by the shutdown…
Latest shutdown odds from Polymarket.
From big-ticket purchases to discretionary spending behavior, it seems the metro area, where nearly 20% of workers are employed by the federal government, is showing a dampened mood.
The Brookings Institution recently asked: "Is the D.C. region’s economy stalling?"
Is the D.C. region’s economy stalling?
For The Current, Tracy Hadden Loh and Glencora Haskins break down the latest DMV Monitor data on jobs, housing, and business trends across the region 📊 https://t.co/Km5xrHyc9P
— The Brookings Institution (@BrookingsInst) October 21, 2025
When was the last time D.C. experienced a recession?
Tyler Durden
Fri, 10/24/2025 – 19:40