Washington DC Housing Market

By Melina Duggal

Washington DC housing market shows gradual rebalancing as inventory builds and sales remain muted

Rising active listings, steady price growth, and below-normal sales activity continued to shape the Washington, D.C., regional housing market in February, signaling a slow transition toward more balanced conditions even as affordability constraints kept demand in check.

Washington DC home prices hold near peak levels despite cooling demand

The median home sale price in the Washington, D.C., region reached $565,000 in February, up 2.7% from a year earlier and the highest February level on record. While prices remained below the June 2025 peak, long-term appreciation has been substantial, with February prices up 36% compared to February 2020. Price growth continued to be driven by single-family homes, which posted annual gains, while attached home prices declined slightly and condo prices were flat, highlighting a clear divergence in performance across property types.

DC region active listings rise sharply but remain below historical norms

Active inventory climbed to 14,401 listings in February, representing nearly 25% growth from a year earlier and marking a continued recovery from the historically tight conditions seen during and immediately after the pandemic. Despite the rapid expansion, inventory remained meaningfully below pre-2020 February averages, when listings typically approached 18,000 units. Supply growth was broad-based across housing types, with condominiums leading gains, followed by townhomes and single-family homes, signaling improved availability in more affordable segments of the market.

Washington region home sales stay subdued even as supply improves

The Washington, D.C., region recorded 3,743 home sales in February, down 2.4% from a year earlier and more than 40% below pre-pandemic levels. While transaction volume remained soft, the region still ranked among the top markets nationally by number of sales, underscoring its relative scale despite weaker demand. Sales trends varied by property type, with single-family transactions rising modestly while townhome and condo sales declined, suggesting that affordability pressures continued to weigh most heavily on buyers seeking lower-priced options.


Horizontal bar chart ranking metros by February median sale prices, with Washington, D.C. highlighted at $565,000.
At $565,000, Washington, D.C. ranked among the top-priced major U.S. housing markets in February, alongside coastal metros.


Washington DC Sale Prices

The Washington, D.C. median sale price in February reached $565,000, with annual appreciation rising to 2.7%.

Washington DC ranks fifth nationally for home sales price change

The median home price in the Washington, D.C., region increased by $15,000 from February 2025 to February 2026, ranking it fifth highest in the nation. Overall, the median home sales price of $565,000 ranks 11th nationally.

This year has the highest sales price of any February

While sales prices were down from the peak of $610,000 from June 2025, at $565,000, February 2026 was the highest sales price of any February, rising from $415,000 in February 2020 to $565,000 in February 2026, a 36% increase.

Price growth of single-family homes outpaces other property types

Washington, D.C., price trends varied by property type. Single-family homes posted 2.2% annual growth, adding roughly $15,000 over the past year, while attached homes decreased by 0.4% and condos stayed the same with no change. This suggests a continued preference for single-family homes.


Key indicator tiles summarizing Washington, D.C. February sale prices, annual percent change, dollar change, and national rankings.
Washington, D.C. posted a $565,000 February sale price, up 2.7% annually, well above the U.S. average and ranking eighth nationally for growth.


Monthly bar chart of Washington, D.C. sale prices from 2018 to 2026 showing long-term appreciation.
Washington, D.C. home prices remain near cycle highs, with February values holding above $560,000 despite slower growth.


Area chart showing Washington, DC annual percent change in sale prices from 2018 to 2026.
After peaking above 15%, Washington, D.C. price appreciation has normalized, settling into low single-digit growth entering 2026.


Vertical bar chart showing Washington, D.C. February year-over-year sale price changes by year.
February price growth moderated to 2.7% in Washington, D.C., down from stronger post-pandemic gains but still firmly positive.


Horizontal bar chart ranking metros by February median sale prices, with Washington, DC highlighted at $565,000.
At $565,000, Washington, D.C. ranked among the top-priced major U.S. housing markets in February, alongside coastal metros.


Bar chart ranking metros by February annual sale price change, highlighting Washington, D.C. at 2.7% growth.
Washington, D.C. home prices rose 2.7% year over year in February, outperforming the national average and ranking near the top among major U.S. metros.


Key indicator tiles showing Washington, D.C. February sale prices, annual growth rates, and dollar changes by property type.
Detached homes led price growth in Washington, D.C., while attached and condo prices remained flat to slightly lower in February.


Side-by-side bar charts showing Washington, D.C. February sale prices and annual growth by detached, attached, and condo homes.
Detached homes remained the primary source of price appreciation, while attached and condo segments showed limited upward pressure in February.


Washington DC Inventory

Inventory reached 14,401 listings in February, an increase of almost 25% compared to February 2025, which signaled widespread supply growth.

Washington DC housing inventory climbs as listings rise 25%

Washington, D.C.’s region had 14,401 active listings in February, up 24.8% year over year and 40% higher than two years ago, when listings in the region were 10,323. The growth reflected a meaningful recovery from the historically low levels seen during and right after the pandemic. As more sellers returned to the market, widespread inventory gains pointed to more balanced supply conditions in the region.

While inventory growth expands, it is still low by historical standards

Before 2020, active listings in the D.C. region in February averaged almost 18,000 units. So, even though the inventory had expanded every year since 2024, it has not reached pre-pandemic levels.

Inventory expands across property types, led by condominiums

Inventory growth occurred across all housing types. Single-family listings rose by 21%, townhome listings increased by 22%, and condo inventory grew the fastest at 26% year over year. Single-family homes account for the majority of listings (6,536), while faster growth in attached housing and condo inventory suggests improving availability of more affordable property types.


Key indicator tiles showing Washington, D.C. February active listings, annual percent change, net change, and national rankings.
Washington, D.C. posted 14,401 active listings in February, up 24.8% annually, ranking second nationally for inventory growth.


Monthly bar chart of Washington, D.C. active listings from 2018 to 2026 showing recent inventory recovery.
While still below pre-pandemic peaks, Washington, D.C. active listings have rebounded meaningfully since 2024, signaling easing supply constraints.


Area chart showing Washington, D.C. annual percent change in active listings from 2018 to 2026, highlighting recent acceleration.
After years of constrained supply, Washington, D.C. inventory growth turned decisively positive, with annual listing gains accelerating into 2026.


Vertical bar chart showing Washington, D.C. February year-over-year change in active listings by year.
Washington, D.C. listings rose 24.8% year over year after years of declines from 2018 to 2024.


Horizontal bar chart ranking metros by February active listings, highlighting Washington, D.C. with 14,401 listings.
Washington, D.C. recorded 14,401 active listings in February, ranking in the top half nationally and trailing high-supply Sun Belt markets like Houston and Dallas–Fort Worth.


Bar chart ranking metros by February annual percent change in active listings, showing Washington, D.C. up 24.8%.
Active listings in Washington, D.C. jumped 24.8% year over year in February, ranking among the fastest inventory expansions nationally.


Key indicator tiles summarizing Washington, D.C. February active listings, annual percent growth, and net change by property type.
Inventory gains were broad-based across property types, with detached homes posting the largest net increase and condos the fastest growth rate in Washington, D.C.


Side-by-side bar charts showing Washington, D.C. active listings by property type and annual growth rates.
Condo listings led inventory growth in Washington, D.C., rising 25.5% annually, outpacing attached and detached homes in February.


Washington DC Home Sales

The Washington, D.C. region recorded close to 3,750 sales in February, a 2.4% year-over-year decline, with roughly 90 fewer closings than last February.

Washington DC sales volume stays below pre-pandemic levels

Washington, D.C. home sales totaled 3,743 in February, down 2.4% from a year earlier and 41% lower than five years ago. While sales improved modestly from the sharp decline in 2023 and 2024, transaction volumes remained subdued, reflecting continued affordability challenges and cautious buyer behavior.

Washington DC sales volume is the sixth highest in the nation

While home sales activity weakened, the number of sales in the D.C. region remained the sixth-highest in the country. The top five regions with the highest sales were all in the Sun Belt, except for Chicago.

Home sales increase in detached properties, while dropping in townhomes and condos

Home sales activity was uneven across property types. Single-family sales were up 3.5%, while condo sales were down 12.2%, and townhome sales declined 4.6%. Single-family homes continued to account for the majority of transactions (1,911 sales), but sharper pullbacks in the typically more affordable townhome and condo segments indicated weaker demand.


Key indicator tiles summarizing Washington, D.C. February home sales, annual percent change, net change, and national rankings.
Washington, D.C. posted 3,743 February home sales, a 2.4% annual decline, ranking 6th in volume but 11th and 19th nationally for percent and net change.


Monthly bar chart of Washington, D.C. home sales from 2018 to 2026 showing lower post-2022 transaction levels.
Washington, D.C. home sales remain well below pandemic-era peaks, with February activity reflecting a prolonged post-2022 reset in transaction volume.


Area chart showing annual percent change in Washington, D.C. home sales from 2018 to 2026, highlighting volatility and stabilization.
After volatility during 2020–2023, Washington, D.C. home sales growth has stabilized near flat, with modest year-over-year changes entering 2026.


Vertical bar chart showing Washington, D.C. February annual home sales changes by year, including a sharp 2023 decline.
February marked another soft year for Washington, D.C. home sales, following a sharp 24.8% drop in 2023 and continued negative momentum through 2026.


Horizontal bar chart ranking metros by February home sales volume, with Washington, D.C. highlighted at 3,743 sales.
With 3,743 homes sold in February, Washington, D.C. ranked sixth nationally for monthly sales volume, trailing large Sun Belt metros like Dallas–Fort Worth and Houston.


Horizontal bar chart ranking metros by February annual home sales change, showing Washington, D.C. down 2.4% year over year.
Washington, D.C. home sales fell 2.4% year over year in February, underperforming fast-growing Sun Belt markets but faring better than several large coastal peers posting steeper declines.


Key indicator tiles showing Washington, D.C. February home sales and annual changes by detached, attached, and condo property types.
Strength in detached home sales offset sharper condo losses, underscoring a February market tilted toward single-family demand in Washington, D.C.


Side-by-side bar charts showing Washington, D.C. February home sales by property type and annual percent change.
Detached homes drove Washington, D.C. sales activity in February, rising 3.5% annually, while attached and condo sales declined 4.6% and 12.2%, respectively.


For questions and commentary about this report:

Melina Duggal, Senior Director of Market Analytics at CoStar and Homes.com, based in Washington, D.C., is available for interviews to provide expert insights on this data and the broader residential real estate market.

Melina Duggal

Senior Director Market Analytics

Homes.com

mduggal@costar.com

Homes.com releases preliminary figures on housing trends on a monthly basis. Although these numbers may change slightly once all transactions are accounted for, they provide an early indication of home price appreciation, inventory changes, and sales volume in Washington, D.C. during February 2026.

For most markets, geographical coverage consists of the Census-defined Core-Based Statistical Area (CBSA). Data for San Francisco, Los Angeles, Miami, and New York is at the Metropolitan Division level.

Definition of Sale Prices

Median home price is the midpoint sale price of homes closed during each month. This data includes homes that are detached, attached, and condominiums. Detached homes are single-family units. Attached homes are townhomes, rowhouses, and duplexes. The condominium classification includes co-ops.

Definition of Inventory

Inventory is the number of unique active listings that were for sale during each month. This data includes homes that are detached, attached, and condominiums. Detached homes are single-family units. Attached homes are townhomes, rowhouses, and duplexes. The condominium classification includes co-ops.

Definition of Home Sales

The total number of closed home sales on the MLS during the month. This data includes homes that are detached, attached, and condominiums. Detached homes are single-family units. Attached homes are townhomes, rowhouses, and duplexes. The condominium classification includes co-ops.

About the Homes.com Market Analytics Team

The Homes.com Market Analytics group is a team of experienced analysts embedded in nearly 30 markets across North America. These experts reside in and regularly visit the markets they cover, providing local expertise and a national perspective on all sectors of real estate: residential, office, industrial, retail, and multifamily.

About Homes.com Analytics Data

The Homes.com analytic data is compiled by the CoStar Analytics team, the largest and most experienced analytics team in the real estate industry. The team consists of over 50 economists, analysts, and data scientists, who collectively have more than 900 years of real estate experience and over 30 advanced degrees. Analysts on the team live in and around the markets they cover, enabling them to build deep local knowledge and unique insights.

The data set being used by the team is one of the most comprehensive and robust in the industry. It spans all 393 metropolitan markets, 542 micropolitan markets, and over 35,000 local neighborhoods in the U.S. The data set is sourced from almost 500 Multiple Listing Service (MLS) providers around the country, as well as public record data from each market, and is supplemented by proprietary data collected by CoStar's team of over 2,000 researchers. It includes a complete inventory of all homes in the U.S., including homes for sale, homes for rent, new construction homes, as well as sale comps and rent comps.

Writer
Melina Duggal

Melina Duggal, AICP, is the Senior Director of Market Analytics at CoStar and Homes.com, where she delivers insights on commercial and residential real estate across the Washington, D.C., Baltimore, and Norfolk regions. With more than 25 years of experience in real estate consulting and analytics, Melina brings deep expertise in market fundamentals, development feasibility, and regional dynamics. She founded and led Duggal Real Estate Advisors and earlier advised public‑ and private‑sector real estate clients at RCLCO. She has taught real estate at the University of Michigan, the University of Maryland, and George Mason University. Melina is a frequent speaker, including for the Urban Land Institute, Commercial Real Estate Women, the National Association of Home Builders, and the American Planning Association. She has published numerous articles and is a contributing author for real estate books. She has been quoted in The New York Times, Urban Land, and The Wall Street Journal. She holds a master’s degree in Urban Planning from the University of Michigan.

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