Shutdown Impact: Americans Are Delaying Big Purchases, But Not As Many As You Think

Government shutdowns have become more common over the past half-century with more than 20 shutdowns since 1976. And while they tend to generate a lot of noise, markets don't necessarily panic, as the S&P 500 has posted a 72% win rate over the past four decades.

But market stability doesn't always reflect how people feel. Wall Street may keep moving forward, but Main Street often responds with more caution — especially when federal paychecks are halted, the news cycle turns negative, and financial uncertainty starts to hit closer to home.

That's why it shouldn't be surprising to see that 17% of Americans are delaying a major purchase like a home or car due to the current government shutdown. The Redfin survey also found that 7% have canceled their plans entirely. At the same time, those not impacted by the shutdown are optimistic, with 65% reporting no change in their financial plans.

Yes, some folks are directly impacted: federal employees and contractors suddenly without income, private workers whose jobs are tied to government funding, or families worried about job security. For them, hitting pause on a big purchase is a necessary response to short-term income disruption.

But most Americans are not in that camp. In fact, for the majority, a government shutdown — even one with high media visibility — isn't enough to shift their financial plans.

For advisors, this is a moment worth noticing as the uncertainty might cause some to panic, while others to be unbothered and to stay the course.

Younger clients who have never been through a shutdown — the last one took place in 2018 — may feel more spooked and may not have the savings to help weather the storm as there is no telling how long the government shutdown could last. Gen X clients might be more reactive if they're mid-mortgage or approaching college tuition years. Retirees may worry about what the noise means for their investment income or government benefits.

A client's decision to buy a house, delay retirement, or hold off on investing isn't just about interest rates, tariffs, or negative headlines. It's about trust, timing, understanding and confidence. When the world feels uncertain, your advice becomes the certainty they need and can rely on.

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