Some markets will suffer more than others as a result of the government shutdown, with Washington, D.C. and its nearby metros being hit the hardest, according to a recent Trulia report.
Basing its data on the percentage of local wages going to federal workers, Trulia finds Washington, D.C. (18.5%) as the top metro where a government shutdown could hurt the most.
The neighboring Bethesda-Rockville-Frederick, Maryland markets also look to be impacted negatively, as these areas have 12.6% of their local wages going to federal workers.
But the effects of the shutdown can extend far beyond nation’s capital as metros thousands of miles from D.C. are also very dependent on federal programs and services.
Markets in Honolulu, Hawaii (11.2%); El Paso, Texas (8.7%); and even reaching as far west as Bakersfield, California (6.8%), which held down the last spot on Trulia’s top-10, also look to be negatively impacted under the shutdown.
On the other end, metros that have less than 1% of total local wages going to federal employees look to be least impacted.
The top three metros least likely to be impacted include Fairfield County, Connecticut (0.5%), San Jose, California (0.9%) and Allentown, Pennsylvania (0.9%). Additionally, New York, with only 1.1% of local wages, joins the list.
While these metros contain lower percentages of wages headed toward federal employees, they aren’t completely immune from the shutdown, Trulia notes, as they too depend on federal government services.
The effects of the shutdown could be minimal compared to the damage caused by other governmental factors to come, such as hitting the debt ceiling and the possibility of triggering a financial crisis, writes Trulia’s Chief Economist Jed Kolko.
“Everyone—not just federal employees and people who want to sell their homes to them—needs to be watching Washington D.C. this month,” writes Kolko.
Written by Jason Oliva