Overview
Washington DC is the nation's capital, offering federal employment stability, world-class museums and culture, and diverse neighborhoods. The city has experienced significant revitalization with new development, restaurants, and amenities. High incomes and strong job market support premium prices.
Washington DC Real Estate Market
DC's market is driven by federal employment, contractors, nonprofits, and growing tech presence. Different neighborhoods show varied dynamics from luxury Georgetown to developing areas east of the Anacostia River. Condo supply has increased while single-family homes remain scarce. Metro access significantly affects property values.
Property Taxes in Washington DC
DC property taxes are below most surrounding jurisdictions, with a generous homestead deduction.
Average effective rate: 0.56%
Annual tax on median home: ~$3,640
Homestead deduction: $82,850 from assessed value
First-Time Buyer Programs
DCHFA Programs: DC Housing Finance Agency offers:
- DC Open Doors - Down payment assistance up to 3.5%
- Home Purchase Assistance Program - Up to $80,000
- Employer Assisted Housing Program
- EAHP for DC Government employees
Closing Costs in Washington DC
DC closing costs are high, typically 3-4% of purchase price.
Common costs include:
- Title insurance: Based on purchase price
- Transfer tax: 1.1% under $400K, 1.45% over
- Recordation tax: 1.1% under $400K, 1.45% over
- Attorney fees: Common
Frequently Asked Questions
With high prices and relatively low property taxes, buying can make sense for long-term residents. However, many DC residents are transient for political jobs. Calculate break-even time carefully given your likely tenure.
Metro access significantly affects property values and daily life in DC. Homes within walking distance of Metro stations command premiums but offer car-free living in a traffic-heavy city.
Neighborhoods in Southeast and Northeast DC have seen investment and development, with lower prices than established areas. Gentrification concerns and varying amenity levels require careful research.