What’s in a home sale? In Nevada, quite a lot.
In the Silver State, every home sale fuels an average of three jobs, generates $141,000 in economic activity, and helps power 22.6% of the state’s gross product, according to research from the National Association of Realtors®.
But as the federal government shutdown enters its fourth week, that vital engine is showing signs of strain. A new report from WalletHub ranks Nevada among the five states most vulnerable to housing-related fallout, thanks to its heavy reliance on real estate as an economic driver.
It’s unwelcome news for the state’s capital, where the housing market was already wobbling. Inventory in Las Vegas is up 40% year over year, surpassing pre-pandemic levels. Homes are sitting nearly two weeks longer on the market compared to a year ago, and nearly 1 in 4 listings has undergone price cuts, according to the Realtor.com® September Housing Report.
While prices haven’t fallen sharply yet—median list prices are down just 0.5% from last year—the signals are clear: The market needs support, not uncertainty.
Confidence fades as tourism slips
“Nevada’s heavy dependence on tourism exacerbates the risk of a shutdown,” says Ben Mizes, president of Clever Real Estate. “Consumer confidence is falling, and hospitality workers don’t know how much money they’ll be making, so the wider buyer pool is shrinking.”
Even before the federal standoff, the signs of a slowdown were mounting for Sin City. Retail spending—from restaurants to auto dealerships—has declined compared to the same time last year, and the metro’s jobless rate remains among the highest in the country, according to state and federal data.
That economic fragility leaves the housing market exposed. Weaker savings, lower income certainty, and rising anxiety all weigh on buyers’ willingness—and ability—to make a move.
“Partial closures/reduced services at national parks can trim visitor flow and local hours, modestly affecting service-sector incomes that underpin entry-level housing demand,” explains Realtor.com economic research analyst Hannah Jones.
While no single flash point has emerged yet, the fault lines are visible.
“There is also potential for a lag in demand on midtier housing if the shutdowns continue into next month. We may see a delayed reaction,” Mizes adds.
Loan backlogs threaten entry-level buyers
Outside of shaken confidence, loan delays tied to the shutdown are creating the most drag for Nevada’s housing market.
“Out in Las Vegas, we have agents saying FHA and VA buyers are on hold with the market freak-out over stalled loan processing, IRS income verifications, and flood insurance,” says Mizes.” Other deals have already slipped because of paperwork delays.”
While FHA and VA loan programs remain operational, these agencies are operating under extreme staffing constraints that can lead to delays for borrowers. It’s the kind of setback that can pile up: In June 2025, Nevada borrowers secured $320.5 million worth of FHA loans, according to the Single-Family Home Snapshot—the 17th highest in the nation for a state that ranks 31st in population.
The same is true for VA loans, which remain operational but are running into delays. Nevada is home to a number of military bases and had the ninth-highest amount of VA loan activity in the third quarter of 2025, according to data from the Veterans Administration.
“FHA and VA loans make up a sizable portion of entry-level housing demand in the state, which could mean many buyers see more friction,” adds Jones.
Mizes says he already sees this playing out in regional disparities across the state.
“So far, Las Vegas is feeling more of a direct hit partly because there are more FHA and VA buyers here. Reno … is less reliant on tourism but has been seeing secondary effects hit construction and service sectors,” he says.
But USDA loans are the most affected. While the impact of these programs is muted in the state compared to others—USDA investment in multifamily and single-family homes in Nevada ranks 46th in the nation since 2024, according to data from the USDA—affected buyers are likely to be hit hardest.
“USDA borrowers are likely to run into more issues as the issuance of new direct and guaranteed home loans has been halted due to the shutdown,” explains Jones. “The USDA pause bites in rural counties and selected exurbs relying on zero down; these contracts are most likely to stall.”
Gridlock slows new construction when the state (and country) needs it most
Furloughs at key federal agencies like the EPA, Department of the Interior, and the Army Corps of Engineers are dragging on new-home construction nationwide. Nevada is no exception.
“Builders we work with in the Reno area say they have been delayed in obtaining permitting and also are waiting for environmental reviews on land either tied to federal activity or where agencies have been slow to respond,” says Mizes. “The ripple effects on deadlines and the ability to schedule contractors are compounding by the week.”
While federal agencies don’t directly issue most residential building permits, they often play a key role in coordinating reviews, clearing environmental hurdles, and greenlighting access to federal land.
“If the Feds can’t provide input, then [states and locals] are kind of dead in the water as well,” Russel Riggs, senior regulatory representative for the NAR, explained to Realtor.com earlier this month.
That’s especially problematic for Nevada, which ranks 34th in the nation for affordability and new construction, according to the latest Realtor.com state-by-state report cards. For a state already underbuilding, every delay pushes housing costs higher.
Gambling on a deal when the stakes keep rising
For a state such as Nevada—where real estate and tourism are the twin engines of growth—the shutdown threatens to be a slow bleed.
“The majority of borrowers in [Nevada] are not likely to be directly impacted by the shutdown, but the psychological impact could be important,” emphasizes Jones. “Widespread economic uncertainty due to the government shutdown could make buyers less eager to get into the market, leading to a slower market pace and building inventory.”
The housing market hasn’t crashed. But with loan pipelines gummed up, new construction dragging, and confidence slipping, the pressure is building. From Las Vegas to rural exurbs, deals are stalling, timelines are stretching, and would-be buyers are sitting on the sidelines.
Whether or not the federal government finds a resolution soon, the ripple effects are already in motion. And for a market still searching for solid footing, the longer the shutdown drags on, the harder it will be to regain momentum.