A government shutdown may sound distant, but its effects reach far beyond Washington D.C. For North Dakota, the impacts are real, from missed paychecks for federal workers to delays in home closings and construction projects across the state.

Impact on North Dakota

More than 1,000 federal employees and military personnel in North Dakota are facing missed pay or furloughs. Communities with a strong federal or military presence, including Minot, Grand Forks, and Bismarck, will feel the slowdown in local spending first.

If the shutdown continues, federal assistance programs like SNAP and WIC could run short on funds, creating stress for families who rely on them. State projects tied to federal funding, such as highway improvements and agricultural research, may also be paused until budgets are restored. Small businesses that depend on federal contracts or SBA-backed loans are already reporting cash flow disruptions, which can ripple into local hiring, retail, and service activity.

Real Estate Effects

The housing sector feels these interruptions almost immediately.

• FHA, VA, and USDA loans are delayed as federal lending offices furlough staff.

• Thousands of closings nationwide are being held up each day.

• Flood insurance renewals under the National Flood Insurance Program are on pause, meaning buyers in flood-risk areas cannot finalize loans until coverage resumes.

• IRS and Social Security verification delays are slowing down conventional mortgage approvals that rely on tax transcript and income checks.

• Affordable housing programs like Section 8 and other HUD contracts are at risk of temporary funding lapses.

• Developers face postponed environmental assessments and permit reviews, which increase costs and uncertainty for new builds.

• Investors are affected as federal economic data, including housing starts and building permits, is temporarily suspended, making it harder to forecast market trends.

Economic and Local Outlook

Economists estimate each week of shutdown trims about 0.1 percent off U.S. GDP growth. Some of that loss will rebound once operations resume, but history shows that roughly 3 billion dollars in output from previous shutdowns was never recovered.

Locally, if federal pay and project funding remain stalled into November, housing demand could soften temporarily as affected households postpone purchases or new leases. However, short shutdowns typically lead to pent-up demand that returns once confidence stabilizes.

What It Means for Buyers and Sellers

For buyers: expect slower processing on federally backed loans. Stay in close contact with your lender and consider pre-approval through private financing or conventional programs if timing matters.

For sellers: be aware that some deals may take longer to close, especially those involving government-insured mortgages. Stay flexible with timelines and lean on your agent to keep communication clear with buyers and lenders.

For investors and developers: expect potential delays in permitting and inspection schedules. Factor extended timelines into project planning.

Proven Realty’s Take

North Dakota’s market remains resilient because of our strong energy sector and consistent local demand. Short-term disruptions can cause friction, but they do not change the long-term fundamentals driving real estate in the Bakken and across Western North Dakota.

Our team continues to monitor local lending, construction, and investment activity closely to help clients stay informed and ready.

We’re Right Beside You

If you’re personally affected by the government shutdown, help is available. Gate City Bank is offering financial support options to ease the burden during this time, including:

• Short-term loans with no fees or interest

• Flexible loan payment assistance to help you stay on track

Learn more and explore these options here.