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.”