Donald Trump's return to the White House has sparked a rush to buy luxury homes in and around Washington DC, as tech titans, cabinet picks and their entourages try to snap up properties and become the US president's neighbors.
With the change in administration, the capital has seen an influx of wealthy political appointees, new members of Congress and business leaders in recent months — and they all need a place to live.
They've picked up multimillion-dollar homes in Washington DC and across the Potomac River in McLean, Virginia, a favorite haunt for politicians, CEOs, diplomats and retired grandees.
In December, Stock-Merkerage Cantor Fitzgerald boss Howard Lutnick and Trump's pick for commerce secretary paid $25 million for Fox News anchor Bret Baier's Foxhall compound—a new record for the city.
David McCormick, a former hedge fund boss and new Republican senator for Pennsylvania, spent $10.5 million on a Georgetown home owned by the late attorney C. Boyden Gray, sources told the Wall Street Journal.
Meanwhile, Scott Bessent, Trump's Treasury Secretary Pick, is reportedly looking for his own lavish property. The same goes for wealthy money manager John Phelan, the nominee for Navy secretary.
Daniel Heider, of Sotheby's International Realty, says the “Trump Bump,” as it's known, isn't just anecdotal, it's measurable. '
“The ultra-luxury segment in particular has emerged as the clearest beneficiary,” he told Axios, adding that the public never even hears about the biggest sales, which are hidden through LLCs, trusts or estate attorneys.
The second Trump administration has brought a lot of new money to Washington DC, from Tech Titans to new Cabinet picks
The newcomers are rushing to snap up luxury homes, like this eight-bedroom property in Alexandria, Virginia, valued at $60 million
Lutnick and Bessent are among several billionaires surrounding Trump, in a second administration that is a concentration of wealth even as the president promises to improve the lives of Blue Collar Americans.
His other billionaire nods are Tesla CEO Elon Musk, entrepreneur Vivek Ramaswamy, former professional wrestling mogul Linda McMahon, North Dakota Gov. Doug Burgum and investment banker Warren Stephens.
Washington DC real estate agents say opulent properties are changing much faster than in the administration trading all over in previous cycles.
After the 2016 election, Trump was blindsided by his victory and basked in filling his Cabinet in the coming months.
This time, his transition team has hit the ground running, showing wealthy business leaders and political outsiders to fill key posts.
Some of them started hunting for homes early, even before they were confirmed, said Michael Rankin of Sotheby's International Realty, who has seen the properties change hands amid nine presidential elections.
In another shift, business leaders and tech entrepreneurs are embracing Trump's policies and scouring properties in Washington to be closer to the president and his inner circle.
“There are a lot of people who come to Washington who are not necessarily even politicians, but those who want to be close to the sun,” Heider told the Journal.
Heider has been selling real estate in Washington DC for a dozen years and brokered the Baier-Lutnick deal.
“They're making 2016 look like Amuse-Bouche for the main entrance, which is what this moment is right now,” he said.
This coveted Alexandria mansion is expected to hit the market soon with a price tag of $23.5 million
Howard Lutnick, the boss of Stock broker Cantor Fitzgerald and Trump's pick for commerce secretary, paid $25 million for a Foxhall-area home
A recently completed property in McLean, Virginia, features a 'transitional Château design,' according to the listing blurb
A modern, newly built townhouse in McLean, Virginia, just hit the market for $15.9 million
The agents were loathe to talk more about their wealthy clients—many agents signed non-disclosure agreements to protect their privacy.
The real estate frenzy has sent the market into overdrive.
There were 87 home sales over $5 million in the Washington DC Metropolitan Area, compared to 53 in 2023 and 16 in 2016, according to data from Bright MLS.
But in November and December alone there were 20 sales above $5 million, double the number in the same period in 2023.
Half of the top 10 most expensive sales of 2024 closed in the tail end of December.
So far in January, seven deals have been worth more than $5 million.
The so-called 'Trump Bump' comes after luxury property values jump in the capital during Covid.
The median luxury sales price at the end of last year was $2.15 million – up 42 percent from 2019.
The area's record sale came in 2021, when Washington Commanders owner Dan Snyder paid $48 million for a 16.5-acre property in Alexandria, Virginia.
That property, once part of President George Washington's original Mount Vernon Estate, now lists for $60 million on Zillow.
The market has become so competitive that some high-end shoppers refuse to commit and sign with a single agent.
Instead, they give their business to the dealer who lands them that dream home.
More deals are also taking place behind closed doors, thanks to recent changes to real estate trading rules.
David McCormick, a former hedge fund chief and new Republican senator for Pennsylvania, dropped $10.5 million on a pad in Georgetown
The Kitchen of River View Estate, on what was once part of President George Washington's original Mount Vernon Estate
There's plenty of closet space in this 16,000 sqft, six-bedroom property in McLean, Virginia
The contemporary property is on the market for $15.9 million and incoming administration officers are welcome to make an offer
According to Heider, the election has poured fuel on an already ballooning market.
“People have figured out there's no inventory,” he said.
“If you like one thing, there isn't another one.”
Homes that previously struggled to find a buyer now have multiple offers.
One of Trump's picks reportedly bid on a luxury Georgetown home that went on the market in 2023 for $13.95 million, but then dropped to $9.99 million.
It eventually sold to another buyer for $10.3 million, records show.
Two other extravagant homes that recently sold for more than $10 million were on the market for more than a year before being snapped up in recent months.
Baier's French Chateau-style home, for example, originally listed for $31.9 million in October 2023 before Lutnick stepped in.
A Georgetown home owned by Connie Milstein, former ambassador to Malta, was listed in 2020 for $15.5 million.
It recently went under contract, with a final asking price of $13.5 million.
Tech Titans, including Amazon founder Jeff Bezos and Paypal Holdings co-founder Peter Thiel, and former Google CEO Eric Schmidt have amassed multimillion-dollar homes in recent years.
More recently, billionaire Jeff Skoll, former eBay president, spent $17 million in November to put together a compound in McLean.
The McLean property features a spa-inspired bath with dual vanities and a kallista sheet,” the listing says
Newcomers snap up luxury properties, like this elegant mansion in the popular, leafy area of Georgetown, which sold for $10.3 million in December
For some Washington DC veterans, the influx of new money is pricing them out of the booming market.
Robert Hryniewicki, an agent with HRL Partners of Washington Fine Properties, says some long-timers have moved on before the rush.
“People moved on and decided, 'Hey listen, interest rates aren't going to come down anymore.' The stock market is high. I'm going to jump on a property now before everything is more competitive,'” Hryniewicki said.
