Trump's return sparks frenzy in DC luxury real estate

President Donald Trump's return to the White House has triggered a surge in Washington D.C.'s luxury real estate market. Wealthy political appointees, new members of Congress, and business leaders are actively purchasing multimillion-dollar properties in the nation's capital and nearby McLean, Virginia.

In December, Howard Lutnick, CEO of Cantor Fitzgerald and Trump's commerce secretary nominee, bought Fox News anchor Bret Baier's home for $25 million, setting a record for D.C. David McCormick, a Republican senator from Pennsylvania, purchased a Georgetown house for $10.5 million. Treasury Secretary nominee Scott Bessent and Navy Secretary pick John Phelan are also seeking luxury homes.

"The pace of deals on big-ticket homes in the capital has escalated faster than in prior administration changes," said Michael Rankin of TTR Sotheby’s International Realty.

Corporate executives and tech entrepreneurs have shown interest in being closer to Trump. "There are a lot of folks who are coming to Washington that aren’t necessarily even politicians," stated Daniel Heider of Sotheby’s.

The local luxury market is experiencing unprecedented highs with 87 home sales above $5 million last year compared to 53 in 2023 and 16 in 2016. The median luxury sale price rose by 42% since 2019.

Real estate agents note increased nondisclosure agreements with affluent clients due to heightened competition. "People are figuring out that there is no inventory," remarked Heider.

Tech industry figures like Jeff Bezos and Peter Thiel have previously invested in D.C., while billionaire Jeff Skoll recently spent $17 million assembling a compound in McLean.

Piper Yerks of Washington Fine Properties noted that many new buyers lack prior political affiliations unlike previous administrations' staff who were already locals.

Some sellers are accelerating their timelines due to high demand following the inauguration. The rental market is also seeing growth with agents like Nickie Jordan receiving interest from incoming administration members.

Thomas Anderson estimated about 20% of recent high-value deals relate to the new administration but noted significant activity from local buyers as well. "There’s much more confidence in this market," he said.

Agent Robert Hryniewicki reported limited inventory with only four single-family homes available in Kalorama neighborhood priced between $3.85 million and $6.4 million.