Even though flood recovery is beginning in Houston, the many economic effects caused by Hurricane Harvey are expected to last for a number of months. Despite the fact that recovery will be optimistic, there will likely be short-term disruptions, such as a scarcity in terms of the availability of relief workers, housing, and the overall rebuilding effort. Reports state that what was most affected by flooding in Houston was residential real estate, yet commercial real estate was also affected as well.
Here are three different ways in which the city’s real estate market was affected by the flooding that was caused by Hurricane Harvey.
*Approximately 1 in 6 multifamily units ended up getting flooded during the storm itself, and as a result of temporary housing demand, there is expected to be an increase in apartment occupancy rates in west, northwest, and northeast Houston.
*There is expected to be an increase in distribution of construction materials and retail items as residents continue to rebuild their homes, as well as replace various household goods that have been damaged in the storm. As a result, this will trigger more demand for real estate properties.
*Hotels located throughout Texas will likely receive additional revenue totaling $430 million thanks in large part to an increased demand for temporary housing for individuals such as emergency personnel, displaced residents, federal agency staff, and construction workers.