NAR on the Front Lines: Protecting REALTORS® During the Federal 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 threatens 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: “According to NAR research, the NFIP supports roughly half a million home sales annually, generating 1 million jobs and contributing $70 billion to the U.S. economy,” said McGahn. “Each day that passes during the shutdown, potential real-life impacts will be felt in America’s housing market, which accounts for nearly 20% of the U.S. economy. That is why NAR urges Congress to reach a funding agreement to reopen the government, while we also continue to advocate for a stable, long-term reauthorization of the NFIP so that families, businesses, and markets can move forward with more certainty.”