Impact of yet another storm felt
Just when we thought the spring rain had passed, Houston was hit by Tropical Storm Bill. The storm is bad news for a state recovering from last month’s record-setting rains and deadly flooding. The rain dumped 37.3 trillion gallons of water on the state during the two months, enough to cover the entire state with eight inches of water, according to the National Weather Service.
“As far as flooding is concerned, this ranks right up there with Allison,” Gov. Greg Abbott said. Mayor Annise D. Parker said that over 4,000 properties have been damaged due to the flood.
The home-building industry in Houston has been affected in a huge way. With inventory housing levels at an alltime low at 2.7 months, Houston is behind the eight-ball when it comes to building homes. The ground is too saturated to pour slabs. The city has been waiting for everything to dry out. Many will wait even longer now because of the recent storm.
When things do dry out there will be a scramble for building materials and labor. Houston will struggle to keep up with the demand on housing due to the recent pent-up demand from low inventory levels and the recent flooding that damaged so many homes. Federal Emergency Management Agency has approved $11 million in assistance to Harris County residents.
With the price of oil stabilizing, low inventory levels in housing, strong job growth and the increase in population, Houston will continue to be one of the strongest housing markets. The second half of this year should be a great one. In spite of everything, Houston will continue to build.