Harvey Flooding Unlikely to Depress Houston's Housing Market

Vigorous continued demand for Houston homes left some realtors surprised after the city endured catastrophic flooding. For a lot of new construction, elevated homes may become the norm.

1 minute read

September 15, 2017, 12:00 PM PDT

By Philip Rojc @PhilipRojc


Texas Flood

AMFPhotography / Shutterstock

Houston has long symbolized the Sun Belt's magic brew of abundant housing and plentiful jobs. Annie Correal and Conor Dougherty write, "The Houston metropolitan area grows by about 400 people a day and builds 40,000 housing units a year, making it the nation's largest new-housing market, with 7 percent of residential construction. With light regulation and a civic model tied to growth, it has kept housing prices low by building everywhere and anywhere, and fast."

All of that got thrown into question when Harvey did its damage. But now there seems to be little doubt that Houston's bumper housing market will live on. "But as insurance and government money comes in, developers and real estate agents are betting that the area will quickly clear the backlog and continue along its normal trajectory of adding homes and people."

In the short term, undamaged homes may be at a premium. "At the same time, many economists are forecasting that the price of undamaged homes will rise as demand outstrips supply. Early estimates suggest that tens of thousands of homes were damaged, and developers are worried about labor shortages as repairs get priority over new construction."

As you'd expect, elevated homes fared better in the floods. They may become the new normal as flood insurers make elevation a requirement to head off future storms. 

Tuesday, September 12, 2017 in The New York Times

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 23, 2025 - Diana Ionescu

Ken Jennings stands in front of Snohomish County Community Transit bus.

Ken Jennings Launches Transit Web Series

The Jeopardy champ wants you to ride public transit.

April 20, 2025 - Streetsblog USA

View of Washington state capitol dome in Olympia, Washington at golden hour.

Washington Legislature Passes Rent Increase Cap

A bill that caps rent increases at 7 percent plus inflation is headed to the governor’s desk.

April 29 - Washington State Standard

Low view of Glendale Narrows section of Los Angeles River with concrete bottom and cloudy storm sky over head.

From Planning to Action: How LA County Is Rethinking Climate Resilience

Chief Sustainability Officer Rita Kampalath outlines the County’s shift from planning to implementation in its climate resilience efforts, emphasizing cross-departmental coordination, updated recovery strategies, and the need for flexible funding.

April 29 - The Planning Report

Grandparents sitting on bench with young girl and boy, girl holding ball and boy holding ukelele.

New Mexico Aging Department Commits to Helping Seniors Age ‘In Place’ and ‘Autonomously’ in New Draft Plan

As New Mexico’s population of seniors continues to grow, the state’s aging department is proposing expanded initiatives to help seniors maintain their autonomy while also supporting family caregivers.

April 29 - Source NM