As
the
federal

government
shutdown
continues,
the
consequences
for
the
housing
market
and
the
broader
economy
grow
more
serious
by
the
day.

Real
estate
accounts
for
nearly 20%
of
the
U.S.
economy,
touching
every
community
and
driving
millions
of
jobs.
Each
additional
day
of
uncertainty
threatens
programs
that
help
buyers,
sellers,
and
property
owners
navigate
an
already
challenging
market.

Among
the
most
immediate
impacts
is
the
lapse
of
the National
Flood
Insurance
Program
(NFIP),
which
supports
roughly 4.7
million
policies and
backs $1.3
trillion
in
coverage across
the
country.
The

NFIP’s
inability
to
issue
new
policies
is
complicating
an
estimated 1,400
property
transactions
each
day,
leaving
many
buyers
in
high-risk
flood
areas
unable
to
obtain
flood
insurance
before
closing on
their
homes.

Flood
insurance
isn’t
the
only
program
impacted

Beyond
flood
insurance,
the
shutdown
has
slowed
or
halted
activity
across
multiple
housing
programs. FHA
loan
endorsements face
potential
delays,
while USDA
has
stopped
issuing
new
loans
and
loan
guarantees
entirely during
the
shutdown,
creating
obstacles
in

financing
for
first-time
and low-
to
moderate-income
buyers. HUD
programs that
provide
rental
assistance
and
community
development
funding
are
also
operating
with
limited
staff.
This
means
local
governments
and
nonprofits
may
experience
delayed
grant
disbursements,
inability
to
get
answers
on
program
compliance
questions,
and
loss
of
technical
assistance
for
implementing
housing
and
community
development
projects.

For

homebuilders
and
housing
developers,
interruptions
in
federal
data
collection
and
agency
coordination
add
another
layer
of
uncertainty.
A
prolonged
lapse
could
disrupt
permitting
processes,
delay
appraisals,
and
postpone
infrastructure
projects
critical
to
expanding
housing
supply.

Each
day
the
shutdown
continues
compounds
these
challenges.
For
millions
of
Americans,
it
means
uncertainty
about
closing
dates,
delayed
access
to
affordable
housing,
and
higher
costs
as
markets
react
to
instability.
For
the
broader
economy,
it
risks
slowing
growth
in
one
of
the
country’s
most
important
sectors.

The

National
Association
of
REALTORS®
strongly
urges
Congress
to
reach
a
deal
to
reopen
the
government
as
soon
as
possible
and
restore
stability
to
housing
programs.
America’s

housing
market
and
the
families
and
businesses
that
depend
on
it
deserve
the
ability
to
move
forward
with
confidence.

Shannon
McGahn
is
the
executive
vice
president
and
chief
advocacy
officer
for
the
National
Association
of
Realtors.

This
column
does
not
necessarily
reflect
the
opinion
of
HousingWire’s
editorial
department
and
its
owners.

To
contact
the
editor
responsible
for
this
piece: [email protected]