Why DC’s housing market is different

A tight land supply, height‑limit zoning, and thousands of high‑income federal and private‑sector jobs keep the DC real estate scene a competitive market year‑round.

Even after the rate shocks of 2024, the housing market is somewhat competitive, sellers still get two offers on average, and the number of active listings rarely climbs high enough to give buyers the upper hand.

What Is the Average Home Price in Washington, DC, Today?

Quick Answer

The median sale price of a home in the District of Columbia hit $700,000 in June 2025, about 1.5% lower year‑over‑year. Typical days on market stretched to 56, up from 42 a year ago. 

Breakdown by Property Type

Detached DC house: median $1.3 million (detached inventory is scarce, pushing values sky‑high). 

Rowhouse/townhouse: prices hover near the overall median home—around $700,000—with wide swings between Capitol Hill and Petworth. 

Condo/co‑op: median $500,000, making condos the entry point for many first‑time homebuyer budgets.

That works out to roughly $511 per square foot, a stat buyers quote constantly when comparing neighborhoods. 

Compared to Maryland’s Average Home Price

Just across Eastern Avenue, the Maryland median sits at $465,600, roughly 34% cheaper than a similar listing in DC. 

Compared to Virginia’s Average Home Price

Northern Virginia is pricier than Maryland but still softer than DC, with a typical house price of $485,600.

Compared to the National Average Home Price

The real estate market nationwide recorded a $447,435 median sale price in June 2025, meaning DC runs about 56% higher than average Washington (state)‑level numbers and roughly 35% above the U.S. norm. 

Housing Market Trends in Washington, DC

Year‑Over‑Year Snapshot of the DC Real Estate Market

Prices have cooled, but only a touch. Zillow puts the average DC home value at $603,287, about 3.8 % lower than last year. Meanwhile, the median sale price sits near $682,000, and the typical house now takes roughly 27 days to go pending, giving buyers an extra week or two to breathe. 

Seasonal Swings

Spring still wins the price race: Bright MLS logged a record‑high $655,215 median for April 2025, only for new‑listing medians to ease to $575,000 by the week of July 6 as summer inventory piled up.

Expect a modest bump again after Labor Day when Hill staffers and contractors return from vacation. 

Long‑Term Trajectory

Zoom out, and DC keeps climbing.

The Case‑Shiller index is up 2.7% year‑over‑year and roughly 60% since 2015, translating to hefty equity gains for long‑time owners. 

High‑end pockets show it best - Georgetown’s median sale price is now about $1.84 million, while revitalizing Brookland hovers near $790,000, nearly doubling over the past decade. 

Factors that Affect House Prices in DC

Neighborhood and Zip Code

From the Capitol Hill housing market to Trinidad, micro‑location is everything.

A block closer to a park or a louder bar strip can swing value by tens of thousands.

Average Capitol Hill townhomes still clear seven figures, whereas a Victorian in Anacostia averages $485,000, making it a standout for affordable housing seekers. 

Proximity to Metro, Employment Hubs, and Schools

Easy walks to a Red Line stop or top‑ranked Wilson HS often push a sale price per square foot higher than elsewhere in the metro area.

Size, Condition, and Age of the Home

A 1900‑era rowhouse restored with new systems can outprice a 2005 build that needs a roof; buyers still pay up for charm plus turnkey.

Local Supply and Demand

DC’s zoning caps heights at ~130 ft, limiting vertical growth.

Even when homes on the market crept past 3,000 active listings in mid‑2025, demand from new Hill staff and contractors kept prices sticky. 

Most Expensive and Affordable Neighborhoods in DC

Most Expensive Neighborhoods in DC

Georgetown, Chevy Chase‑DC, and Kalorama routinely post medians north of $1.4 million. Deep‑pocketed buyers vying for embassy‑worthy estates keep the upper tier robust even when today’s market cools city‑wide. 

Most Affordable Neighborhoods in DC

On the opposite end, Historic Anacostia and ZIP 20036 (Downtown condos) see medians between $386,000 and $485,000, offering a softer entry for buyers priced out elsewhere. 

Up‑and‑Coming Neighborhoods in DC

Outer Northeast pockets like Brookland and Brentwood/Langdon attract renovators hunting value; both logged year‑over‑year gains even while the city average slipped. 

Forecast for Washington, DC Home Prices

Bright MLS forecasts the broader Washington housing market to climb about 4.7 % in 2025, pushing the regional median to roughly $638,300.

Lower mortgage rates and more job‑return commuting are expected to buoy demand, though price growth should stay below the double‑digit spikes of 2021.

Final Thoughts on the D.C. Housing Market

Even with a modest year‑over‑year dip, the DC housing market still commands a premium over Maryland, Virginia, and the nation at large.

Limited land, steady government payrolls, and tight inventory levels mean buyers shouldn’t expect deep discounts, but careful timing (late summer or the winter lull) can shave a few thousand off the sale price per square foot.

Sellers, meanwhile, benefit from pent‑up demand and the city’s resilient market and real estate trends.

In short, 2025 remains a solid—if costly—time to buy or sell a home in DC.

FAQ’s About Average Home Prices in DC in 2025

Are DC home prices expected to keep rising in 2026?

Most economists see single‑digit appreciation—think 3‑5%—as inventory remains tight but mortgage rates drift lower.

What’s the first‑time homebuyer sweet spot right now?

One‑bedroom condos under $500,000 east of the Anacostia River or around Navy Yard offer the best blend of transit and affordability.

How many homes were sold in June this year?

A total of 625 homes sold in June 2025, up slightly from 602 the prior year. 

Is it cheaper per square foot in the suburbs?

Yes, suburban Maryland averages ~$255 median sale price per