A government shutdown—triggered if Congress fails to pass funding by Sept. 30—could ripple across the real estate sector, disrupting mortgages, flood insurance, permitting, and more (Rauber, 2025). The National Association of REALTORS® (NAR) has pinpointed eight federal programs that may feel the impact most sharply for realtors and buyers alike. In particular, uncertainty over the National Flood Insurance Program raises red flags, as that scheme undergirds many home transactions (Rauber, 2025).

While essential services are likely to continue, many discretionary functions tied to housing and federal agency support could pause or slow. NAR is actively lobbying for protections and congressional action to avert a shutdown. In the meantime, real estate professionals should prepare for delays in appraisals, underwriting, permitting, and insurance.

One perspective is that a shutdown of even modest duration could strain an already stressed housing market. Delays in flood insurance and agency-backed mortgage support hit regions prone to flooding and low-to-moderate income buyers hardest. Realtors in those markets may see deals stall or deals slip altogether as risk and friction increase.

On the flip side, this moment highlights the fragility of relying on federal programs to sustain housing activity. In future planning, industry stakeholders may seek more resilient models that depend less on federal continuity—or press for contingency funding mechanisms that cushion real estate activity from political gridlock.

READ MORE

Read the original article here: Possible Government Shutdown: What You Need to Know by Michael Rauber, REALTOR® Magazine, September 26, 2025.
© 2025 National Association of REALTORS®.