Government Workers Who Have Lost Their Jobs Worry About Their Housing

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The abrupt firings have left federal workers and contractors throughout the country in flux, with many distressed over how they will pay the mortgage or rent.

A man in a jacket and jeans stands outside.
Cameron McKenzie is one of many federal workers who was recently fired. Credit...Jonno Rattman for The New York Times

Matt Yan

Feb. 25, 2025Updated 10:32 a.m. ET

After losing his job at the U.S. Forest Service, Cameron McKenzie was worried about finding a new job. But first, he had a more immediate concern: How was he going to pay the mortgage?

He’s done the math — finding another job in the environmental sector could take months — and keeping up with the nearly $2,700 monthly payment on his three-bedroom home in Blairstown, N.J., will be a challenge, if not impossible. “Even on unemployment,” said Mr. McKenzie, 27, who worked as a community engagement specialist, “I’m not going to be able to make my mortgage payment.”

Mr. McKenzie’s termination was among thousands of federal job cuts, part of a purge of the work force under an executive order signed by President Trump. The abrupt firings have left federal workers and contractors throughout the country in flux, with many distressed over their housing.

The effect of the layoffs has been palpable, especially in the Washington area, where there are more than 300,000 federal government employees. Rumors have swirled that the firings are causing the area’s housing market to crash after videos began circulating on social media.

Lisa Sturtevant, the chief economist at Bright MLS, a multiple listing service, said that it is too soon to tell if the D.C. market has been shaken by the layoffs because “it hasn’t had enough time to filter into the housing market,” she said. In the first two weeks of February, there were 2,829 new listings in the D.C. area, which is “virtually unchanged” from the same time period last year, with 2,820 listings, according to a report by Bright MLS. During the week that ended Feb. 23, the number of new listings was up 12.9 percent over the same period last year, according to another report by Bright MLS.

Workers like Mr. McKenzie are already rethinking their futures in terms of their careers and where they will live.


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