At the end of August, Hurricane Harvey flooded the Houston real estate market with a 50-inch deluge the likes of which had never been seen before. We had the expectation that this was going to take years to recover from. Already, we're seeing some interesting surprises, some of which may affect you if you're interested in selling your property.
Hello. My name is Paul Carroll. I'm the CEO and founder of Efficient Wealth Management, a boutique wealth management firm here in The Woodlands and Austin, Texas. Last week, I was at the Houston Business Journal Power Breakfast here in The Woodlands, and there were a lot of interesting conversations that led me to do some additional research. What has been the impact of Harvey? Only about 40 of the city’s 1,200 office buildings suffered any significant flooding. Now, that may not include Kingwood, Spring, and other outer areas. In Kingwood, unfortunately, the high school was possibly destroyed.
As a result of this flooding, there's greater demand for industrial real estate properties. But, what's more interesting to homeowners, one in six multifamily units experienced some sort of flooding. When I say the unit, I mean the entire building, and not every individual unit in the building. There's been significant displacement among homeowners and renters in Houston. This event has actually been a boom for the hotel and construction industries. What's really interesting though is the housing prices. One would think that the risk of future floods would hurt the housing market but it has had the exact opposite effect.
There is a significant demand in the sub-$500,000 range for new housing. There's significant demand for rentals. If you have a home that you've been holding off from putting on the market till next spring, because that's very often the traditional advice, you may want to think about getting it on the market now. We're seeing some significant price movement in the North Houston real estate market.
We wish you the best of investing success. Thank you.
Brown, Steve. “Hurricane Harvey will dampen Texas' real estate market for the rest of 2017.” Dallas News, The Dallas Morning News, 8 Sept. 2017, www.dallasnews.com/business/real-estate/2017/09/08/hurricane-harvey-will-dampentexas-real-estate-market-closing-months-17.
Dembowski, Anna. “5 ways Harvey affected Houston's real estate market.” Community Impact Newspaper, 13 Sept. 2017, communityimpact.com/houston/tomball-magnolia/economic-development/2017/09/13/5-houstons-real-estate-market-harvey/.
Smialek, Jeanna. “How Harvey Will Affect Houston's Housing Market.” Bloomberg.com, Bloomberg, 7 Sept. 2017, www.bloomberg.com/news/articles/2017-09-07/harvey-delivers-windfall-to-lucky-few-who-built-on-high-ground.