The Real Impact of a Government Shutdown on Today's Housing Market

There’s been a lot of talk lately about how a government shutdown could impact the real estate market in Miami and the Florida Keys. The truth? The market doesn’t stop. Homes are still being bought and sold, contracts are signed, and closings continue. Some parts of the process may slow down, but overall, housing activity keeps moving forward.

During a shutdown, certain federal agencies scale back operations, which can delay government-backed loans like FHA, VA, and USDA. These loans make up nearly a quarter of all mortgage applications, and temporary furloughs can cause minor processing lags. Flood insurance approvals from the National Flood Insurance Program may also take longer, especially for properties in South Florida’s coastal flood zones.

Still, history shows the market always bounces back quickly. During the last government shutdown in 2018, home sales dipped briefly and rebounded as soon as operations resumed. According to the National Association of Realtors (NAR), delayed closings simply caught up once the government reopened.

In today’s market, buyers and sellers in Miami, Key Largo, Islamorada, and surrounding Keys communities may experience short-term slowdowns, but activity remains steady. For prepared buyers, this can even create opportunities — less competition and more negotiation room.