The United States government shutdown is hitting Florida where it really hurts.
As Congress remains at a standstill, effects of the shutdown are rippling through the state’s housing market.
With government agencies on pause, flood insurance renewals are in limbo, builders are bracing for delays, and environmental permits are sitting unattended to.
Housing shapes the US economy — and nowhere is that more evident than in Florida, where real estate configures 24.1 percent of the gross domestic product.
Across the US, housing makes up about 18 percent of the economy, or around $4.9 trillion.
But in Florida, each home sale has an even bigger impact. A typical sale adds about $125,000 to the local economy and helps support around two jobs in areas such as construction, retail, and home services.
What Florida is enduring amid the government shutdown should serve as a cautionary tale for the rest of the US.
‘Given Florida’s large share of national housing activity, even a modest pullback in buyer engagement could visibly nudge national sales and inventory metrics,’ said Realtor.com senior economist Anthony Smith.