U.S. Government Shutdown Impacts Housing and Homebuilders

The U.S. government implemented a shutdown at 12:01 a.m. on Oct. 1, 2025, after failed attempts to reach an agreement to extend government funding. Here’s how the shutdown will affect housing and homebuilders, according to the National Association of Home Builders (NAHB).

NAHB says delays should be expected for any housing-related federal government programs that are still operating, including the National Flood Insurance Program. The authority to provide new flood insurance contracts is expired for the duration of the government shutdown, delaying all new home sales or insurance renewals for property owners with federally-backed mortgages located in a Special Flood Hazard Area.

Some functions of the Department of Housing and Urban Development (HUD) will continue, including the endorsement of single-family loans and insured programs with firm commitments and scheduled closings, though delays in processing should be expected. The department will also make payments under previously obligated Section 8 contracts, Section 236 agreements, Section 202 and 811 Project Rental Assistance Contracts (PRAC) and Section 811 Project Rental Assistance (PRA).

Read more about the effects on the HUD and how other government agencies will be affected here.