Developers are just starting to survey the extent of Harvey’s damage in Houston, now that roads are reopening and they can inspect their properties. At least 75,000 homes have been damaged. It could take months or years for Houston’s vibrant housing market to recover from the storm. Deals that were scheduled to close will be delayed, and buyers who were shopping for homes may reconsider Houston. Crews scheduled to build new homes will likely be lured away for the reconstruction, delaying new homes by months and increasing the costs of labor and materials. The housing market will tighten as the supply of homes shrinks, pushing rents higher in areas that weren’t flooded.
There will be a significant impact on real estate but its just too early to know what it’s going to be. Business will not be normal for some time. Banks will be hit particularly hard since standard homeowners and renters insurance doesn’t cover flood damage, and policies in some areas don’t cover wind damage. With only about 15 percent of Houston residents insured against floods. Some may choose walk away from their homes because it will be too costly.
The Houston metropolitan area was starting to get hot before Harvey hit — it was the leading homebuilding market in the U.S. last year, with 35,367 building permits issued for new homes. Despite ongoing weakness in the oil industry, home sales and prices were rising steadily as local job and population growth lifted demand across the state.
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Published on 2017-09-05 15:11:01
