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Which Cities Will be Harmed the Most by the Government Shutdown?

With 800,000 employees on indefinite furlough, national parks closed, and federal benefits and programs eroding, it's safe to say the government shutdown will effect millions of Americans. But some urban areas will feel the pinch more than others.
October 1, 2013, 1pm PDT | Jonathan Nettler | @nettsj
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John Fowler

The immediate effects of the first federal government shutdown in 17 years are being felt today by those forced to stay home from work and away from national parks and monuments. But, says Jed Kolko, "If it goes on for a long time, the shutdown could hurt the economy and therefore housing demand, particularly in the metros where people depend more on federal paychecks for their livelihood."

With that in mind, Kolko and his colleagues at the real estate website Trulia "looked at the share of total local wages going to federal employees," to understand which areas could be effected the most.

"No surprise that Washington D.C. and its suburbs depend most on federal paychecks: 18.5% of Washington D.C.-area wages go to federal employees, and 12.6% in neighboring Bethesda-Rockville-Frederick, MD," he notes. "But other metros – even some that are thousands of miles outside the Beltway – are also very dependent on the federal government: more than 10% of total wages go to federal employees in Virginia Beach-Norfolk, Honolulu, and Dayton, OH."

How will design professionals be effected by the shutdown? "A halt of federal funds intended for infrastructure projects could hamstring many landscape architecture firms," said the ASLA in a statement released today decrying the shutdown and its potential impact on their members. The AIA has published a web page to provide its members with up-to-date information about the shutdown, answers to frequently asked questions, and links to relevant resources.

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Published on Monday, September 30, 2013 in Trulia Trends Blog
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