North Carolina, October 17, 2025

New-home construction in North Carolina is approaching a halt due to the ongoing government shutdown. Developers are experiencing significant delays in obtaining permits and financing, raising concerns about the state’s housing supply and affordability. As construction projects stall, the impact on both current and future housing developments poses challenges for potential homeowners and the overall market. Authorities are urged to consider the ramifications of the shutdown on local economies and communities reliant on housing development.

Raleigh, NC – New-Home Construction in North Carolina Faces Significant Delays Amid Ongoing Government Shutdown

Raleigh, NC – New-home construction in North Carolina is nearing a standstill due to the ongoing federal government shutdown. Developers are encountering substantial delays in obtaining necessary permits and securing financing, which could severely impact the state’s housing supply and affordability.

Impact on Housing Supply and Affordability

The federal government shutdown, initiated on October 1, 2025, has led to the furlough of approximately 900,000 federal employees, with another 700,000 working without pay. This disruption has resulted in the suspension of various federal services, including those critical to housing development. The North Carolina Department of Health and Human Services is actively working with local, state, and federal partners to understand and navigate the evolving impacts on essential services, including housing. However, the uncertainty surrounding the shutdown has raised concerns about potential delays in accessing federal funds allocated for housing initiatives.

Delays in Permits and Financing

Developers across the state are facing significant challenges in obtaining necessary permits and securing financing for new housing projects. The shutdown has led to the suspension of various federal services critical to housing development, creating a bottleneck for developers. The North Carolina Department of Health and Human Services is attempting to manage these challenges in collaboration with local and federal partners, though the ongoing uncertainty continues to hinder essential housing projects.

Background Context

Prior to the shutdown, North Carolina was already grappling with a shortage of affordable housing. In April 2024, the North Carolina Housing Finance Agency (NCHFA) was authorized to issue $750 million in revenue bonds to address this crisis. The NCHFA has financed over 310,700 homes and apartments, totaling $31.9 billion, and was poised to use these funds to increase the state’s supply of affordable housing for low- and moderate-income families.

In December 2024, the North Carolina Senate approved Senate Bill 382, aimed at revitalizing critical housing projects and addressing disaster recovery needs. This bill allocated an additional $50 million to the North Carolina Office of Recovery and Resiliency (NCORR) and mandated the finalization of subrecipient agreements for projects under Round 3 of the Affordable Housing Development Fund by December 31, 2024. If enacted into law, this legislation could have facilitated the commencement of stalled housing projects in towns such as Maysville and Beulaville, as well as in Pamlico and Scotland Counties, and initiatives supporting the Lumbee Tribe of North Carolina.

However, the ongoing federal government shutdown has introduced significant uncertainties into these efforts. The suspension of federal services and the furlough of federal employees have led to delays in the processing of permits and the disbursement of federal funds, hindering the progress of housing projects across the state. The North Carolina Department of Health and Human Services is actively working with local, state, and federal partners to understand and navigate the evolving impacts on essential services, including housing. Nevertheless, the uncertainty surrounding the shutdown continues to raise concerns about the timely access to federal funds allocated for housing initiatives.

As the shutdown continues, stakeholders in North Carolina’s housing sector are closely monitoring the situation, advocating for the swift resolution of the federal funding impasse to mitigate further delays and ensure the continued development of affordable housing in the state.

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Author: Construction NC News

The NORTH CAROLINA STAFF WRITER represents the experienced team at constructionncnews.com, your go-to source for actionable local news and information in North Carolina and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the North Carolina Build Expo, major infrastructure projects, and advancements in construction technology showcases. Our coverage extends to key organizations like the Associated Builders and Contractors of the Carolinas and the North Carolina Home Builders Association, plus leading businesses in construction and legal services that power the local economy such as CMiC Global and Womble Bond Dickinson LLP. As part of the broader network, including constructioncanews.com, constructionnynews.com, and constructiontxnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.