Week 2 of a Government Shutdown – What it means for REALTORS®

National Association of REALTORS®

WEEK 2 OF A GOVERNMENT SHUTDOWN:
Congress was unable to reach a funding deal, and as of October 1, the federal government has
shut down. During a government shutdown, many real estate programs are impacted, including
the National Flood Insurance Program (NFIP).
The National Flood Insurance Program (NFIP) Lapses with Shutdown:

• The federal shutdown took effect on October 1, and NFIP authority to issue new policies has
  expired.
• This complicates an estimated 1,400 property transactions per day.
• Existing policies remain valid for 30 days and can be transferred to new owners, but uncertainty
  grows the longer the lapse continues.
  Housing Market at Risk:
• Every day the shutdown continues, potential real-life impacts will be felt in America’s housing
  market, which accounts for nearly 20% of the U.S. economy.
• Beyond NFIP, government shutdowns often delay IRS income verification, FHA and VA loan
  processing, and federal housing program funding—slowing or halting transactions nationwide.
• In total, shutdown-related disruptions could touch hundreds of thousands of homebuyers,
  sellers, and renters, adding uncertainty to a market already struggling with affordability and
  supply challenges.
  NAR Advocacy Push:
• NAR sent a letter to Congress urging NFIP extension and activated a coordinated advocacy
  campaign with Federal Political Coordinators nationwide.
• NAR continues pressing lawmakers to reauthorize NFIP and end the shutdown immediately.
  Statement from Shannon McGahn, NAR Executive Vice President and Chief Advocacy Officer:
  “This shutdown puts vital housing programs on hold, creating uncertainty for families, businesses, and
  markets across the country. From federal mortgage and rental assistance to disaster relief and flood
  insurance, each day of delay compounds real-life impacts in America’s housing market, which accounts
  for nearly 20% of the U.S. economy. Already, the NFIP’s authority to issue new policies has lapsed,
  complicating an estimated 1,400 property transactions a day and leaving many buyers in high-risk
  areas without coverage.
  We strongly urge swift passage of the clean bipartisan C.R. or long-term funding package to reopen
  the government. America’s housing sector, and the millions of people who depend on it, deserve the
  stability to plan and move forward with confidence.”