What a Government Shutdown Really Means for the Las Vegas Housing Market

There’s been a lot of talk lately about how a government shutdown could impact the housing market — and if you live here in Las Vegas or Henderson, you might be wondering: Will everything grind to a halt?

The short answer? No.

The local housing market doesn’t stop. Homes are still being listed, shown, and sold across the valley. Contracts are still being signed, escrows are still closing, and families are still moving in and out of the Valley. While a few parts of the process may slow down slightly, the Las Vegas real estate market continues to move forward.

Here’s What Typically Happens

When the federal government shuts down, some agencies temporarily close or scale back their operations. That can create a few hiccups in real estate transactions — especially when it comes to processing certain types of government-backed loans or flood insurance approvals.

For example:

• “Applicants for FHA, VA, or USDA loans—which account for about one-quarter of all mortgage applications—may encounter significant processing delays due to agency furloughs.” — Selma Hepp, Chief Economist at CoreLogic

• “By recent estimates, more than 2,500 mortgage originations per working day are at risk of delays during a shutdown.” — Zillow

• Flood insurance approvals may also be paused. The National Flood Insurance Program can be temporarily affected, which delays closings in designated flood zones.

Even with those challenges, most transactions in Clark County still go through. Buyers keep buying, sellers keep selling, and local real estate teams like ours at Team Farnham with eXp Realty continue helping clients move forward confidently.

The Housing Market Usually Bounces Back Fast

Looking back at the most recent government shutdown at the end of 2018 (which lasted 35 days), home sales across the U.S. — and here in Southern Nevada — only dipped slightly during the closure. As soon as the government reopened, activity rebounded quickly.

Data from the National Association of Realtors (NAR) shows existing home sales slowed briefly, then picked back up as delayed closings cleared through the system. In markets like Las Vegas and Henderson, where job growth, relocation, and lifestyle-driven moves remain strong, this kind of temporary slowdown tends to have minimal long-term impact.

What This Means for Las Vegas Buyers & Sellers

If you’re currently in escrow, don’t panic. Most deals will still move forward, even if it takes a few extra days for certain verifications or loan approvals.

“If you’re expecting to close in a week or a month, there could be some slight delay, but I think for most people, it’s probably going to be a blip more than a real deal killer.”
— Jeff Ostrowski, Bankrate Housing Analyst

If you’re just beginning to think about buying or selling, a brief slowdown could actually work in your favor. Some people hit pause during moments of uncertainty — and that can create opportunities:

• Buyers may face less competition for homes.

• Motivated sellers may be more open to negotiation.

• Well-prepared buyers can lock in a home before activity ramps back up again.

In a market as dynamic as Las Vegas, even a short window of reduced competition can make a meaningful difference.

Bottom Line

A government shutdown can cause some short-term delays — especially for buyers using VA or FHA loans — but it doesn’t derail the Las Vegas housing market. The last time this happened, sales rebounded almost immediately once the government reopened.

If you’re wondering how this might affect your plans or you’d like to stay informed about how national events influence our local Las Vegas and Henderson real estate market, let’s connect.
Team Farnham – Loving Las Vegas Through Real Estate.