The 'return to the White House' of President-elect Donald Trump is stirring the high-end dwelling market in Washington, D.C. This is because 'billionaires' who will work in the Trump administration are buying up dwellings in Washington, D.C. at high prices.
On the 19th (local time), The New York Times (NYT) reported, "President Joe Biden warned in his farewell speech last week that a 'plutocracy' is forming among those with wealth, power, and influence, but in Washington, plutocrats are already buying large houses," noting that "enormous wealth is concentrating in this city, where power and money are more intertwined than ever."
Howard Rutnik, nominated as the Secretary of Commerce, purchased a French Chateau-style dwelling on Hokes Hole Road last month for the region's highest price of $25 million (about 36.4 billion won). According to Forbes, Rutnik's net worth is approximately $1.5 billion (2.1893 trillion won). Treasury Secretary nominee Scott Benset, who holds assets of $700 million (about 1.0217 trillion won), is reported to have recently looked at a $7 million (about 1.02 billion won) dwelling in Georgetown.
Real estate agents say there is a lack of 'trophy houses' in Washington due to the launch of Trump's second term. As demand concentrates on the limited high-end dwellings, housing prices are soaring. Journalist and author Sally Quinn recently received a call from a real estate agent saying she could sell a Georgetown dwelling with 18 rooms built in the 1790s for double the current price. The home of the late C. Boyden Gray, who was legal counsel to President George Bush, was sold last month for $10.5 million (about 15.3 billion won).
The residence for Elon Musk, the Chief Executive Officer (CEO) of Tesla and leader of the Department of Government Efficiency (DOGE), has not yet been confirmed, but local media reported that he plans to purchase the 'Line Hotel' located in the Adams Morgan area, known for its numerous bars, and turn it into a private club. DOGE, led by Musk, is expected to set up offices in the Eisenhower Executive Office Building across from the White House, where rental expenses are also projected to be high.
It is common for people aiming for high-ranking positions in the administration to flock to Washington, but the real estate market is more lively than ever with the influx of 'billionaires' in the Trump second administration. At least 12 individuals slated for senior positions in the new administration, including Trump, are billionaires, according to NYT. In particular, Musk, the head of DOGE, has assets totaling $429 billion (about 626 trillion won), placing him at the top of Forbes' list of the world's wealthiest individuals.
Billionaires in high positions of the Trump second administration hold far more assets than senior officials of past administrations. Excluding Penny Pritzker, the Hyatt Hotels heiress and former Secretary of Commerce under the Obama administration, who has an asset of $4.1 billion (about 6 trillion won), wealthy individuals involved in the Democratic administration usually had only a few single-digit millionaires.
Compared to the first Trump administration, the wealth of senior officials in the second administration is greater. Rex Tillerson, former Chief Executive Officer of ExxonMobil and the first Secretary of State in the Trump administration, had an asset of up to $350 million (about 510.8 billion won) in 2017; however, this is only 0.08% of Musk's assets.
Jonathan Taylor, founder of the real estate firm TTR Sotheby's, noted, "There are many very wealthy individuals looking for a seat at the table (high-ranking positions)." David Rubenstein, co-founder of the private equity firm Carlyle Group, said, "(Trump's administration) high-dollar donors want federal government policies that include more oil drilling, easier antitrust regulations, and more favorable cryptocurrency policies, as well as relaxed bank oversight."
Some voices suggest that home prices in Washington are relatively affordable for billionaires. Rubenstein stated, "To buy a really nice house in New York or Southampton, England, it could cost at least $100 million (about 145.9 billion won) to $150 million (about 218.9 billion won); meanwhile, in Washington, no matter how hard you try, you can't spend $25 million (about 36.5 billion won) on a home."