How a Government Shutdown Impacts the Colorado Springs & Monument Housing Market

There’s been a lot of talk recently about how a government shutdown might affect the housing market — especially here in Colorado Springs, Monument, Northgate, Flying Horse, and the greater Pikes Peak region. If you’re buying or selling a home in the area, you may be wondering whether everything stalls out.

The short answer?

No — the Colorado Springs housing market keeps moving.

Homes are still bought and sold, contracts continue to be signed, military families still relocate, and closings continue to happen. While a shutdown can create a few temporary slowdowns, real estate activity in our region remains incredibly resilient.

What Typically Happens During a Government Shutdown (and How It Affects Colorado Springs & Monument)

Whenever the federal government shuts down, certain agencies either close or reduce operations. Since the Colorado Springs area has a large number of VA buyers, military relocations, and government-backed loans, we may feel some of these impacts a little more than other cities — but real estate doesn’t stop.

Here’s what may slow down:

1. Delays for FHA, VA, and USDA Loans

These loan types make up a significant portion of mortgage applications in El Paso County, especially with our strong military population (Fort Carson, Peterson SFB, Schriever SFB, and the U.S. Air Force Academy).

Industry experts explain:

“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

“More than 2,500 mortgage originations per working day are at risk of delays during a shutdown…” – Zillow

This doesn’t mean loans stop — it just means processing may take longer.

2. Flood Insurance Approvals May Pause

While most Colorado Springs and Monument homes are not located in flood zones, properties near Monument Creek, Fountain Creek, Cottonwood Creek, and areas near Black Forest burn scar drainage paths may require flood insurance. If the National Flood Insurance Program pauses, closings in those areas may be delayed.

3. Verifications and Paperwork May Move Slower

Certain federal verifications used in underwriting can take longer during a shutdown, which can extend closing timelines slightly.

Even with these challenges, the majority of transactions still close successfully. Buyers keep buying, sellers keep selling, and the market keeps moving forward.

The Market Historically Bounces Back Quickly

A look at past shutdowns shows a clear pattern:
Any slowdown is temporary.

During the 35-day shutdown in late 2018, home sales dipped only slightly and then rebounded quickly as soon as the government reopened. Delayed closings simply moved into the following months, and activity normalized rapidly.

That’s especially true in Colorado Springs and Monument, where:

• Strong military relocation activity

• Consistent job growth

• High demand in Northgate, Flying Horse, Briargate, Wolf Ranch, and Jackson Creek

• Limited housing inventory

all keep the market moving regardless of political or economic noise.

What This Means for Buyers and Sellers in Colorado Springs & Monument

If you’re already under contract, don’t panic. Most transactions continue normally, though you may experience a minor delay.

As Bankrate housing analyst Jeff Ostrowski explains:

“If you’re expecting to close in a week or a month, there could be some slight delay, but for most people, it’s probably going to be a blip rather than a deal-killer.”

If you’re just beginning to think about buying or selling, a government shutdown can even create a small window of opportunity:

For Buyers:

• Slightly fewer active shoppers

• Less competition on well-priced homes

• More negotiating power in select price points

• A chance to secure a home before activity picks back up

For Sellers:

• Serious buyers remain active

• Military and job-related moves continue regardless of political events

• Proper pricing and presentation still attract strong offers

In short: real estate doesn’t stop. It simply pauses for a moment — and those who are prepared can benefit.

Bottom Line

A government shutdown causes some temporary delays, but it does not derail the Colorado Springs or Monument housing market. Activity remains strong, demand stays steady, and sales historically bounce back quickly once operations resume.

If you’re planning a move or need clarity on how current events could affect your timeline, I’m here to guide you with expert local insight.

Top Colorado Springs & Monument Realtor

Marquesa Hobbs
Trusted • Data-Driven • Local Market Expert
Helping you make confident, well-informed real estate decisions.

What’s important to note is that the slowdown you see in the orange bars on this graph wasn’t simply A Top Realtor, Marquesa Hobbs,  is ready to help you whether you are buying or selling Real Estate!

cell 719.238.0330 office 719.536.4444

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