My First Basement Apartment- A Rite of Passage in Washington
The New Trump Wave and Washington Housing
I remember the excitement of moving into my first basement apartment in Washington in 1989. I was finally out of Atlanta, Georgia, and ready for a big new chapter in my life. I discovered my first real bagel; I would jog around the White House every morning and see First Lady Barbara Bush playing with her dogs on the South lawn. I had my first invitation to an actual ball, the Meridian Ball. Of course, I needed a tux, and I went to Nordstrom, where they also taught me how to tie a bow tie. Every new day was an adventure, and I was in Washington DC, the most important city in the World!
But it was expensive…. I had to find a roommate quickly and make some tough decisions about living on my small income in an expensive new city. It helped that all my friends were in the same situation; we were all living paycheck to paycheck but loving every day like it was a dream. Odds are that if you are successful in Washington today, you started in a basement apartment.
Measurable Change is coming to Washington
I have recently been asked about the potential changes to the housing market since the recent presidential election. My standard answer is we see very little change in the overall market because of the small numbers of people “net” that move in and out of the city based on a standard election. I think this time will be a sea change. We are coming off a 20-year generation of former Clinton, Obama, and Biden personnel who have professionally lost their jobs or connections. It’s as big of a change as when Newt Gingrich took over as speaker of the House and changed the Republican party for a generation. Many of my friends lost their jobs in Congress, associations, and law firms with political clients. Most of those friends never recovered those plum jobs again.
The return of former President Trump and the sweep of the Senate and possibly the House of Representatives will bring a lot of new faces to Washington and Capitol Hill specifically. According to PBS, “One top item on the to-do list: filling around 4,000 government positions with political appointees, people who are specifically tapped for their jobs by Trump’s team.”
From Sticker Shock to Luxury Housing Value
On the lower end of the real estate market, there will be a sticker shock for the cost of rentals and condo purchases compared to other parts of the country. Housing costs in Washington, D.C., are significantly higher than in many regions, reflecting the city’s political and cultural hub status. The median home price in D.C. often exceeds $600,000, driven by demand from government employees, professionals and a limited supply of housing options. Additionally, the average rent for a two-bedroom apartment in Washington, D.C. typically hovers around $3,000 per month, which is considerably higher than many cities and towns in the U.S. where rents can be below $1,500 for similar accommodations. This disparity is further exacerbated by the high cost of living in the capital, making it increasingly challenging for residents, particularly those with lower incomes, to secure affordable housing. The resulting housing market dynamics illustrate economic differences and broader implications for community diversity and accessibility in Washington, D.C.
On the luxury side of housing, Washington is a bargain compared to other luxury markets nationwide. Luxury housing in Washington, D.C., often presents a more affordable alternative compared to markets like New York City, Los Angeles, and Miami. While D.C. is known for its upscale developments and high-end amenities, the prices for luxury properties tend to be lower than in these other major metropolitan areas. For instance, a luxury condominium in D.C. may range from $1 million to $3 million, while similar properties in New York or Los Angeles can quickly soar above $5 million. This price difference can be attributed to factors such as the availability of land, local demand, and the overall cost of living. As a result, affluent buyers seeking a luxurious lifestyle may find that Washington, D.C., offers a compelling value, combining upscale living with a relatively lower price point than its more notorious counterparts.
This city thrives on change, and this election will significantly impact housing. I hope to see new faces as excited as I was when I moved to Washington. Engaging in the electoral process is crucial to shaping a future that promotes effective housing policy and ensures everyone has a place to call home.
This is an excellent explanation of what will be happening in the next few months.