Yes — the federal government is still shut down. As of today, October 15, 2025, the shutdown has entered its 15th day.

Here’s the current picture and how it affects real estate:

• 🏛️ Status: Congress has failed multiple times to pass a funding bill. The Senate is preparing for yet another vote, but the stalemate continues.

• 👷 Federal workers: About 750,000 employees remain furloughed, while “essential” workers (military, law enforcement, air traffic controllers, etc.) are still on the job but unpaid.

• 💵 Military pay: Troops were paid today through a temporary workaround, but future paychecks are at risk if no deal is reached.

• 📉 Services: Social Security, Medicare, and Medicaid payments continue, but many agencies are cutting staff or closing facilities. Smithsonian museums and the National Zoo, for example, are closed.

• ⚖️ The sticking point: The fight is over whether to extend Affordable Care Act tax credits, which Democrats want included in the funding bill. Republicans want that handled separately.

So yes, the shutdown is ongoing, and unless Congress breaks the deadlock soon, it could rival the 2018–2019 shutdown (the longest in U.S. history at 35 days).

How the Federal Government Shutdown Could Impact Austin’s Housing Market

The ongoing federal government shutdown has entered its third week, and while Washington gridlock may feel far removed from Central Texas, the ripple effects are already reaching Austin’s housing market. For buyers, sellers, and investors, understanding these dynamics is critical to navigating the months ahead.

1. Mortgage Processing Delays

• FHA, VA, and USDA loans: These federally backed programs are experiencing slowdowns as agencies operate with limited staff. In some cases, loan endorsements and income verifications are paused entirely.

• Austin impact: First-time buyers and veterans—two groups that rely heavily on these programs—may face delayed closings or even lose homes under contract if financing stalls.

2. IRS and Income Verification Bottlenecks

• Lenders often require IRS income transcripts to finalize loans. With the IRS operating at reduced capacity, these verifications are delayed.

• In Austin’s competitive market, where multiple-offer situations are common, buyers dependent on these verifications could lose out to all-cash or conventional-financing offers.

3. Consumer Confidence and Buyer Psychology

• Nationally, shutdowns tend to dent consumer confidence. In Austin, where affordability is already stretched by high home prices, even a small dip in confidence can cause buyers to pause.

• Sellers may see longer days on market as buyers hesitate, particularly in mid-tier price ranges.

4. Federal Employees and Local Spending Power

• Austin is home to thousands of federal employees and contractors. Furloughs or delayed paychecks could temporarily reduce their ability to qualify for mortgages or keep up with rent.

• This could soften demand in certain submarkets, especially in areas with higher concentrations of government workers.

5. Data Blackouts and Market Uncertainty

• Key federal reports—such as jobs data—are delayed during the shutdown. Without these benchmarks, the Federal Reserve and mortgage markets operate with less clarity, which can keep rates volatile.

• For Austin buyers, this means mortgage rates could swing unexpectedly, complicating affordability calculations.

6. Short-Term vs. Long-Term Outlook

• Short-term: Expect slower transaction volume, delayed closings, and more cautious buyers. Sellers may need to adjust pricing strategies or offer concessions to keep deals alive.

• Long-term: Historically, housing markets rebound quickly once shutdowns end. Pent-up demand often leads to a surge in activity, which could benefit Austin sellers if they can weather the temporary slowdown.

So do you sell, buy or hold right now?

The shutdown won’t crash Austin’s housing market, but it will slow momentum. Buyers relying on federal loan programs or income verification may face hurdles, while cash buyers and conventional borrowers gain leverage. For sellers, patience and flexibility will be essential until Washington resolves its standoff.

Sources: Yahoo Finance, The Mortgage Point, The Silicon Review.