As natural disasters go, Hurricane Harvey has wreaked the most damage in terms of lives displaced and clean-up costs we have yet faced as a nation; the devastation will take years to cure.
While the human toll is unquestionably enormous, so too is the ripple effect on the local and national economy; Houston area is the 5th largest regional economy and accounts for 3% of US gross domestic product.
Some Immediate Impact Felt
- National gas prices have risen due to refinery downtime. AAA estimates gas prices are up $.06 from the beginning of the week others put it at $.10.
- Unemployment claims will rise steeply since sheltered people can’t work and flooded business in Houston and surrounds are shut down for the foreseeable future.
- Auto sales slump in the short term. Up to half a million flooded cars and trucks will likely be scrapped; Texas is a key port to auto imports.
Recovery and Housing
- More than 200,000 homes at an expected cost of up to $40 billion could be flooded and need major repairs or replacement
- According to the National Flood Insurance Agency only 15% of homes in the Houston area have flood insurance
- On the positive side the economy will be put back to work quickly with recovery work
Now may be the best time to consider purchasing a new home or doing repairs and renovations with a 203(k) or HomeStyle renovation loan. Please contact me at 302-438-9516 directly to discuss your dream plans now!