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D.C. real estate trends to be aware of in 2025

Commissions change thanks to pivotal court decision

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Local experts predict a strong year ahead for the D.C. real estate market. (Photo via Bigstock)

Real estate news rarely grabs national headlines, but in 2024, all of us were glued to the news that commissions would change thanks to a pivotal court decision. 

Real estate can be dramatic. 

As a new year approaches, you are likely thinking about those new commission structures, and maybe you’re also wondering how to best position yourself and your Washington, DC real estate investments for 2025. We expect a good year, and we want to make sure you’re up to date on all the trends and shifts we see coming to our market specifically and the industry as a whole. 

Navigating the real estate market can be complex, especially in a dynamic hub like Washington, D.C. For investors looking to make informed decisions in 2025, understanding the key trends and factors influencing the market will be critical. Here’s a deep dive into what you can expect in the coming year.

D.C. Home Values and Prices

Washington, D.C.’s real estate market has always been an expensive and competitive market, whether you’re buying in the accessible, urban neighborhoods or the residential, suburban spots in the northwest part of the city. This is a market driven by its status as the nation’s capital. Lots of people want to live and work here, which is good news when you have a home to sell or a property to rent out.

As 2024 begins winding to a close, many submarkets within Washington, DC are experiencing a drop in home values. It’s not extreme, but it has given owners pause before selling a property. While sites like Zillow and Redfin and Realtor.com have been reporting that overall, home values have dropped by about two percent, in neighborhoods like Capitol Hill, home values have been rising.

Take a look:

According to Redfin.com, home values in Capitol Hill were up 8.5% in August of 2024 compared to August of 2023.

This is a good reminder of how nuanced the market really is. Performance always depends on the specific neighborhood you’re in. Those desirable areas are retaining their value and home prices are going up.

In 2025, home values are projected to continue their upward trajectory in specific neighborhoods, albeit at a more moderate pace compared to the rapid increases witnessed in the past few years. This moderation offers opportunities for savvy investors to capitalize on value growth while avoiding the high peaks of a volatile market. 

The areas where we expect the best growth (based on reports from Baseline, a research firm) include Dupont Circle, Adams Morgan, Foggy Bottom, Navy Yard, and Columbia Heights.   

Mortgage Rates and D.C. Home Sales

We anticipate more good news from the Fed in 2025, hoping that interest rates will continue to come down, making home buying more affordable and attractive to consumers. Market observers and experts are talking about 2025 mortgage rates resting between six and seven percent. Over the next 18 months, decreases seem rather inevitable.

An article in the Washingtonian magazine does a good job of explaining how dipping mortgage rates are likely to affect our local housing market. 

What does this mean for real estate investors? It means that you may have the opportunity to refinance if you’re currently paying down an expensive mortgage. It also means that if you’ve hesitated to buy, waiting for rates to become more attractive, it’s a good time to be thinking about acquisitions. 

Investors should prepare for these potential changes by securing favorable financing terms and considering fixed-rate mortgages to hedge against rates that could always potentially rise again.

It’s also a good time to think about tenant retention. A lot of Washington, D.C., tenants who are qualified to own a home might have been putting off the purchase, thus staying in a rental home. They might think about buying in 2025 with more favorable rates.

D.C. Rental Market

Let’s talk more about those tenants.

With this being an election year, we could potentially see some new residents showing up in Washington, D.C. Turnover can be expected, but we can also expect an influx of new people looking for high-quality rental homes. Are you prepared to meet their needs?

The rental market in Washington, D.C. is anticipated to remain competitive, fueled by a steady stream of professionals drawn to the city’s political and economic opportunities. High demand for rental properties will likely keep vacancy rates low, making rental investments an attractive proposition.

As an investor, you don’t want to take high tenant demand for granted, however. There are some new trends in tenant preferences that you’ll want to be aware of and prepared for:

  • There is an increasing demand for properties that offer more than just living space. Remote workers are a big part of the tenant population, and they’re looking for co-working space, great tech amenities, and an opportunity to build community.
  • Smart home technology is in high demand for Washington, D.C., rental properties. Tenants are drawn to rental homes with digital keypads and smart locks, video doorbells, and smart thermostats. 
  • Energy-efficiency and sustainable properties matter more and more to tenants, too. Upgrade your lighting and replace aging appliances with those carrying the ENERGY STAR certification. 

These are differentiators for modern and qualified tenants in 2025.

Supply and Demand Dynamics

D.C.’s supply and demand dynamics are shaped by several factors, including regulatory policies and the city’s finite land availability. While demand consistently outstrips supply, there are initiatives underway to boost housing development and meet the growing need. Check out that Washingtonian article we referenced earlier, where there’s a larger discussion about supply and demand and the impact that new construction is having throughout the city. 

Investors will want to monitor zoning changes and development projects closely, as these can provide new opportunities and influence property values. Strategic investments in developing areas could yield significant returns as the market evolves. We are expecting some new buildings and communities to come online in the New Year.

Washington, D.C., remains a growing, diverse, and promising market for real estate investors in 2025. By understanding the relationship between home values, rental trends, mortgage rates, and supply-demand dynamics, investors can position themselves to maximize returns. As always, staying informed and adaptable will be an important part of navigating this dynamic market successfully.

(Please note this information is deemed reliable, but not guaranteed. The information shared is based on our personal and existing knowledge as a D.C.-area property manager, not as a legal or financial expert. Feel free to contact me for further details.)


Scott Bloom founded Columbia Property Management in 2012 and serves on the property management committee of Greater Capital Area Association of Realtors. For more information and resources, go to ColumbiaPM.com.

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Real Estate

When buying a home, it’s decisions, decisions, decisions

Keeping notes on the process makes for an informed purchase

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If you’re buying a home, take careful notes throughout the process. (Photo by Andy Dean Photography/Bigstock)

When looking to buy a home, there are lots of details to consider. Many of my clients would come to me and say, “Joe I want to buy a place, but I haven’t decided which neighborhood to buy in.” And the struggle was real. A few clients had everything decided from the color of the hallway walls to the cabinet handles and sometimes which three square blocks they wanted to look at. 

But other clients were occasionally looking at properties in areas as distinct as Union Market/NOMA, Brookland, Logan Circle, and then we would even go across the river to look at a property in Shirlington or the Van Dorn areas of Virginia, which all have their own unique flavor and characteristics.

Sometimes clients would tell me, “I only want to look in Mount Pleasant or Adams Morgan.” Or, “don’t even show me any properties west of this street or south of that street.” My job wasn’t to convince people where to live. It was to just take the parameters they set for me and find as good of a property in that zone as I could, coordinate the showings and, if necessary, offer the strategy.  

One can see that buyers often had more decisions to make than a seller. From a seller’s perspective, the house was where it was, and we just had to make the best of it. But working with a buyer could mean looking at five different neighborhoods, and then being a “thought partner” to help them figure out which were the top two or three areas they had seen, and then further distilling those down into what was available and weighing those options against each other. 

One house could have the dream bathroom but also be located six blocks further from a Metro stop, walkable shopping and dining, and “just too far away from my friends.” Another house could have all the neighborhood options a client was looking for, but was just not in turnkey condition, and would require an additional $30,000 of upgrades once purchased to make it into the dream home they envisioned.  

One activity I often asked buyers to do was to keep an active list in their heads of the properties they liked, and to keep a running rank of the top three. I often encouraged them to bring a notebook along on the journey where they could take notes and write down questions they thought of as they looked. It was an important decision, and sometimes the largest purchase of their lives. Why not take it a little seriously, and take notes? This could often help the buyer later when they felt it was time to decide.  

The point here is, keeping a notebook handy can sometimes help a person with what feels like an overwhelming process. It provides a space to explore how one feels, jot down important details to remember, and then use that to make an informed decision.  


Joseph Hudson is a referral agent with RLAH. Reach him at 703-587-0597 or [email protected].

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Under-the-radar Delaware beach towns smart buyers are targeting

There are other options if Rehoboth prices are scaring you off

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If you want to escape the crowds and nightlife scene of Rehoboth Beach, Sussex County offers plenty of options. (Blade file photo by Daniel Truitt)

Look, we love Rehoboth. We will always love Rehoboth. Queer folks have been flocking there since the 1940s, and with scores of LGBTQ-owned businesses and a Pride calendar packed tighter than the boardwalk in July, “Rehomo” earned its crown fair and square.

But let’s be honest with each other: trying to buy property there right now feels a lot like trying to get a reservation at the one good restaurant in town on a Saturday in August. Everyone wants in, inventory is tighter than your swim trunks after Labor Day brunch, and the prices have officially entered “are you kidding me” territory.

So here’s a thought: What if you didn’t fight the crowd? What if, instead, you let Rehoboth keep doing its glorious, chaotic, glitter-bomb thing and you quietly built your beach life 15 minutes away for considerably less drama and considerably more square footage? Here are four towns ready for their close-up.

Lewes: The Charming Overachiever

Lewes is what happens when a beach town actually has its life together. Historic charm, walkability, proximity to Cape Henlopen State Park, less crowding, and a strong year-round community. Unlike towns that turn into ghost towns after Labor Day, Lewes maintains a real community all year long, which is more than we can say for some situationships.

And right now, the market is practically begging you to make a move. It’s one of the most desirable and stable markets in the county — built for buyers thinking long-term, not flippers, and Sussex County overall has flipped into genuine buyer’s market territory for the first time in years. Translation: you finally get to be the one with leverage. 

Bethany Beach: My Personal Pick

Full disclosure: I own in Bethany. So consider this section a little biased — and also the most honest thing I’ll tell you in this whole article.

When I drive down from D.C., I’m not looking for more of D.C. I love this city, but I also love leaving it — and yes, some of the people in it too (you know who you are, and so do I). Bethany gives me that full exhale. It’s quiet in the way that actually means something: fewer crowds, slower mornings, a soundtrack that’s mostly waves instead of nightlife. It leans hard into its “quiet resort” reputation, with low property taxes and a limited geographic footprint, and it is not the least bit sorry about it. 

But quiet doesn’t mean isolated. I’ve got a genuinely excellent food scene nearby, real shopping, and a string of charming neighboring beach towns — and when I do want a taste of Rehoboth’s energy, it’s a short, easy drive away. I get to choose my dose of chaos instead of living inside it.

And here’s the part that matters most for this article: the price. If you’ve looked at Rehoboth listings and quietly closed the tab in despair, I need you to hear this — you can absolutely afford a beach house. It just doesn’t have to be in Rehoboth. Bethany’s average home value sits around $848,592, which is still real money, no question — but it buys you more house, more land, and more peace than the same budget gets you closer to the boardwalk. Bethany is welcoming too, just without Rehoboth’s decades of built-in queer institutional history — and for plenty of us, that trade-off is more than worth it. 

Fenwick Island: Small Town, Big Flex

Fenwick rarely gets mentioned and, frankly, it should be insulted. It’s tiny, it’s quiet, and it has beach access without the carnival energy. The market data tends to lump it in with Bethany, where single-family oceanfront homes clear $1 million while entry-level condos start in the $600s — proof that “under-the-radar” doesn’t mean “bargain bin,” it means “fewer people fighting you for it.” 

South Bethany: For the Boat Gays

Some of us want sand between our toes. Others want a private dock and a boat named something deeply unserious. South Bethany’s canal communities are built for the latter — water access on both sides, fewer crowds, and a lifestyle that says, “I have a captain’s hat and I am not afraid to wear it.”

The Math Works in Your Favor Now

Here’s the part that should really get your attention: Sussex County’s median sold price has dropped to $440,000, down 3.3% year-over-year, and buyers are routinely closing around 88 cents on the dollar compared to asking price. That’s a far cry from the unhinged bidding wars of 2021 and 2022, when overpaying was basically a competitive sport. Inventory across the county sits at nearly 2,500 active listings — the most of any county in Delaware, meaning you actually get to be picky for once. Revolutionary, we know. 

And no, choosing one of these towns doesn’t mean leaving your people behind. Sussex Pride serves the entire county, not just Rehoboth proper, and CAMP Rehoboth’s resources extend well beyond town limits too. You’re not exiling yourself to the suburbs of queerness — you’re just getting a bigger kitchen, a quieter porch, and a much shorter line for the bathroom. 

Add in the fact that Delaware has no estate tax and some of the lowest property taxes around, savings that genuinely add up over a retirement horizon, and the case writes itself. Rehoboth will always be the beating, sequined heart of queer beach culture in Delaware. But if you’ve been telling yourself a beach house isn’t in the cards — I’m here to tell you it absolutely is. It just might be 15 minutes south, with your own quiet porch, your own salt air, and considerably more room to breathe. 

Have a real estate question or Rehoboth market tip? Reach out to [email protected] for LGBTQ-friendly real estate resources in the Rehoboth area.


Justin Noble is a Realtor licensed in D.C., Maryland, and Delaware with Monument Sotheby’s International Realty. Reach him at [email protected] or 302-897-7499.

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‘Culture eats strategy for breakfast’

Real estate agents must adapt, learn how to manage from within

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A real estate agent is contractually bound to act on their client’s behalf. (Photo by Andy Dean Photography/Bigstock)

“Culture Eats Strategy for Breakfast” was a phrase often repeated in many of my management courses from the University of Illinois. The concept was discussed at length – how the best laid plans can sometimes be supported or derailed by the culture of the people involved in whichever project to be implemented. Whether it be a project to implement new software, roll out a new product or service, or just reaching a sales target, the way the team involved works together can indeed affect the outcome.  

Perhaps this is just another way to say, “teamwork makes the dream work!” Most teams usually have someone who is designated as a leader. The leader can try to lead through authority and control or can alternatively try to lead through influence and encouraging a more collective framework for solving problems.  

Why does this matter when picking the right real estate agent or team to work with? Besides having a job as a salesperson for the brokerage, the real estate agent is contractually bound to act on their client’s behalf. The buyer broker agreement is in place so that the agent and the client can work together as a team in communications regarding offer strategy, during negotiations, implementing marketing plans, as well as selecting which renovations or upgrades to choose before selling a property.  After the property goes under contract, the job isn’t “done”.  There is still work to do.  

At this point, the agents then turn into a project manager of sorts – coordinating communications between the lending team, the title attorneys, the other client’s agents, any governmental agencies that could be involved in down payment assistance or helping to clear a property for a sale, and often times groups like a condo board, a home inspector, or contractors when arranging repairs and estimates before a final walk through. 

In short, the agent takes on somewhat of a “leadership role” in the transaction and ensures that all the ducks stay in a row until the project is complete.  That agent will hopefully be very fluid and forthcoming with their information, copying the required parties on all communications and creating a “paper trail” of who said what or didn’t offer to fix A, B, or C, so that all the minutiae of the contract can be addressed and fulfilled before the settlement date.  The agent often must wear many hats and quickly learn the communication styles of an entire new set of people in a short period.  One person may not return calls for a week after being contacted.  Another person may go on vacation at the beginning of the process and not return emails for two weeks.  Another person may wish to have daily updates of the progress of the process. 

In this way – an agent quickly learns in each transaction that “culture can eat strategy for breakfast.” Because the agent must adapt to a wide variety of communication styles, learn how to “manage from within”, build support for closing the project by the due date, and somehow keep all the interested parties invested, engaged, and responsive.  

Who you work with matters when picking the right person to represent you in your next transaction – so, just remember that “teamwork makes the dream work!”


Joseph Hudson is a referral agent with RLAH. Reach him at 703-587-0597 or [email protected].

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