Shutdown Shockwaves: Flood Insurance Paused, Housing Market Jitters

Published Date: 10/29/2025

A federal shutdown has frozen FEMA’s National Flood Insurance Program for new policies and renewals—leaving buyers and owners in flood zones scrambling. In this short episode, we unpack how the pause is tangling real-estate deals in Sacramento, why lenders often require flood coverage, and where the private market can step in (sometimes for less than you’d think). We also zoom out to the broader housing picture: fewer homes selling above list than in 2021, longer days on market, and what shifting mortgage rates—and Fed moves—really mean for buyers. Plus, a quick note for current FEMA policyholders who need to file a claim during the shutdown.