Don Peebles: Govt. shutdown is bringing instability to housing marketplace

Market Instability & Contributing Factors - High interest rates, excessive vacancy rates for commercial office buildings, and lack of affordability in supply-constrained housing markets are already impacting the real estate market [3] - The government shutdown adds uncertainty and hinders new housing production, further hurting the housing market [4] Impact on Specific Geographic Areas - Washington DC metro area, especially Washington DC proper, is expected to be severely impacted due to high commercial office vacancy rates (well into the 20s), crime, cost of living, and regressive tax policy [5][6] - Northern Virginia is also affected by the government shutdown due to the large number of government employees, contractors, and consultants consuming office space [7] - South Florida's luxury condominium market is supply-constrained for new construction, while older buildings (15-25+ years) face challenges due to major repairs, high assessments, and insurance costs [11][12][13] Florida Real Estate Dynamics - South Florida (Miami, Miami Beach) is attractive to high-income earners due to good quality of life, zero personal income taxes, zero estate taxes, and a pro-business environment [10][11] - Central Florida (Tampa, Tampa Bay area) and other parts of Florida (Jacksonville, Daytona Beach, West Palm Beach) are still relatively affordable [14][15] - Florida's "live work" initiative, incentivizing zoning with a 40% affordable or workforce housing component, aims to address the workforce housing shortage [14]