Washington D.C. Rental Housing Starts Drop to 932 Units Amid Trump Administration Layoffs; Mayor and Lawmakers Seek Solutions

New rental housing starts in Washington, D.C. fell sharply to 932 units last year, marking a 79% decline from the previous year. This decline in investment has contributed to a pronounced slowdown in development in the city, outpacing trends seen in other regions. The drop in housing starts coincides with a surge in home inventory in D.C., which has been linked to federal layoffs under the Trump administration.

These layoffs have introduced uncertainty into the competitive D.C. housing market. Meanwhile, other metropolitan areas are experiencing similar trends: Miami-Dade County has seen construction starts fall to a nine-year low due to projects becoming financially unviable, and Philadelphia's multifamily housing investors are expressing concerns about a potential recession as new construction activity diminishes. Local officials, including the mayor and lawmakers in D.C., are reportedly exploring measures to counteract the development slowdown.