Luxury real estate market braces for influx amid Trump's return

As Washington prepares for Donald Trump's return to the presidency next month, the high-end real estate market in the District of Columbia is anticipating a surge in activity. Wealthy individuals and influential figures are expected to arrive in the nation's capital, prompting brokers to prepare for a series of multimillion-dollar transactions in upscale areas such as Kalorama and Massachusetts Heights.

Michael Rankin, principal at Sotheby’s International Realty in DC, expressed optimism about upcoming sales. "I think we will see some big numbers transact again starting around January," he told Curbed. He noted that affluent buyers have been waiting for certainty before making significant property investments. "People don’t want to spend $5, $10, $15 million if they don’t know whether they’ll be confirmed or not. But what we do know of the people who are coming is that it’s the multimillionaire and multibillionaire class."

During Trump's first term, several members of his administration made notable real estate purchases. Commerce Secretary Wilbur Ross bought a Beaux-Arts mansion for $12 million, Treasury Secretary Steve Mnuchin acquired a 16,000-square-foot estate for $12.58 million, and Secretary of State Rex Tillerson purchased a home in Kalorama for $5.5 million.

Currently, brokers are receiving inquiries from prominent officials interested in buying properties; however, non-disclosure agreements prevent them from sharing specifics. Kalorama is expected to be particularly active due to its grand homes and diplomatic community. Sally Quinn once described Kalorama as having "a more palatial atmosphere" compared to Georgetown during Trump's first term.

Georgetown's liberal reputation makes it an unlikely choice for many Trump affiliates seeking residences in DC. "I have not heard of any of the Trump people living in Georgetown," Quinn mentioned.

However, not all news surrounding Trump's return is positive. His plans to reduce federal employment could impact housing markets catering to middle and upper-middle-class workers at agencies like HHS and EPA facing potential layoffs.

Eva Davis from Compass reported receiving calls from agency employees uncertain about their future job security: “My team has had a number of calls from people at agencies… saying, ‘We don’t know what’s going on but we might need to sell.’”

There are also concerns that Trump’s administration may show less interest in residing within DC compared with previous administrations due to preferences for Florida and New York locations.

One broker commented on this trend: “I think this administration doesn’t spend as much time in the District as other administrations.”

Even Elon Musk—one of Trump's wealthy allies—is unlikely to invest heavily locally since he reportedly does not favor large homes according to Rankin: “He isn’t a big house person.”