DC Housing Market Update: Selling, Holding, or Renting in 2025

Nest DC

The DC housing market is shifting. Homes are taking a little longer to sell. Condos are sitting longer, too. Buyers are more cautious, and sellers are adjusting expectations.

This isn’t bad news. It’s a reminder that housing is cyclical, and that in Washington, demand never really goes away. Our city’s jobs, culture, and community keep it one of the most desirable places to own a home in the country.

Cozy DC living room with couch and exposed brick wall, reflecting the city’s rental property and apartment rental market.

What We’re Seeing

According to Redfin’s July 2025 market report, the median home price in Washington, DC was $685,000, up 1.5% from last year. The median price per square foot hit $518, up slightly from last year as well.

Homes in DC are taking longer to sell, averaging 57 days on the market compared to 48 days at this time in 2024. That’s nearly two months from listing to closing.

Sales activity is holding steady. 626 homes sold in July 2025, compared to 590 the year before — showing that buyers are still present, but they’re taking more time and being more selective.

Even so, prices are steady. The median home price in DC reached $608,000 in June 2025, up nearly 3% year-over-year. That stability tells us people still want to buy in DC, they’re just more selective about how and when.

What This Means for Sellers

If you’re ready to sell, you can. Well priced and well located homes are still drawing strong interest, especially single family homes in desirable neighborhoods. You may not see a bidding war, but you can still find the right buyer.

If you’re choosing to wait, this can also be a strategic time to hold, improve, or simply pause.

What This Means for Owners Considering Renting

Here’s the opportunity: renting is not just a backup plan. It’s a proactive strategy.

Leasing your home generates steady income while you hold onto your asset. It keeps you connected to a strong market without locking you into a sale during a slower season. And it positions you to benefit when conditions shift again... as they always do in DC.

For condo owners especially, where the for-sale market is softer, renting can be the clearest path forward. And for anyone on the fence, it’s a way to buy time, keep your property in circulation, and benefit from DC’s ongoing demand for apartment rentals and condo rentals.

How to Choose What’s Right for You

If you need liquidity now, selling may still be your best choice. If you have flexibility, renting can work beautifully. Either way, your decision should reflect your goals, your timeline, and your comfort level.

Nest’s Take

As a team deeply rooted in this city, we believe renting should never be seen as “second best.” It’s often the smartest move an owner can make. And in a city like ours, with a constant flow of people who want to live, work, and build here, well-managed rentals will always be in demand.

That’s why we’ve built a reputation for 5 star property management in Washington. Our focus is on transparency, care, and creating a better experience for both owners and residents. Whether you’re weighing property management services or simply staying informed about the market, our goal is the same: to help you make good decisions that work for your investment and for the city we share.

So if you’re considering your next step, remember this: you’re not stuck. You have choices. And in DC, those choices are powerful.


The Bottom Line

The DC housing market is adjusting, not collapsing. Sellers may need more patience. Buyers have more leverage. And owners have real choices... including renting as a smart, strategic move.

At Nest DC, we’re here to help you navigate those choices with clarity and confidence. If you’d like to learn more about partnering with us, or how our property management team can support you on your rental property journey, we’d love to connect.

Connect with our team anytime to explore your options.

DC living room with couch and exposed brick, highlighting local rental property market.
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