The devastating impact of Hurricane Harvey on the Houston region is expected to affect the housing market long after the clean-up
The devastating impact of Hurricane Harvey on the Houston region is expected to affect the housing market long after the clean-up.
Some of the homes and commercial properties affected will suffer permanent market value loss while others will actually benefit according to a new report from Houston-based real estate firm Deal Sikes & Associates.
“Some properties that did not flood have actually benefitted. For example, apartment occupancy and rental rates have spiked and a great deal of empty office space has been absorbed,” said Matthew Deal, principal at Deal Sikes & Associates. “An otherwise soft market has tightened because flooded properties have been at least temporarily taken off the market.”
Deal added that some of the commercial properties damaged may never return to the market, lowering vacancy rates which could put upward pressure on rents and property values.
Hurricane Harvey caused property losses of $100 billion and the Greater Houston Partnership estimates that more than 500 businesses and 72,000 single-family homes suffered major property damage.
For homeowners whose properties flooded, especially if they hadn’t flooded before, the cost of repairs and temporary displacement is likely to followed by another harsh reality.
“The flooded properties may suffer permanent market value losses caused by the likelihood of future flooding and the stigma caused by the effects of contaminated water inundating properties, at times for more than a week,” Deal warned.
Some of the homes and commercial properties affected will suffer permanent market value loss while others will actually benefit according to a new report from Houston-based real estate firm Deal Sikes & Associates.
“Some properties that did not flood have actually benefitted. For example, apartment occupancy and rental rates have spiked and a great deal of empty office space has been absorbed,” said Matthew Deal, principal at Deal Sikes & Associates. “An otherwise soft market has tightened because flooded properties have been at least temporarily taken off the market.”
Deal added that some of the commercial properties damaged may never return to the market, lowering vacancy rates which could put upward pressure on rents and property values.
Hurricane Harvey caused property losses of $100 billion and the Greater Houston Partnership estimates that more than 500 businesses and 72,000 single-family homes suffered major property damage.
For homeowners whose properties flooded, especially if they hadn’t flooded before, the cost of repairs and temporary displacement is likely to followed by another harsh reality.
“The flooded properties may suffer permanent market value losses caused by the likelihood of future flooding and the stigma caused by the effects of contaminated water inundating properties, at times for more than a week,” Deal warned.
