Houston Puts the Hurt on Harvey: One Year Later

Harvey Aftermath: One Year Later August marks the anniversary of Hurricane Harvey and so much has happened in Houston since it made landfall one year ago on Aug. 25, 2017. Our local economy continued to grow, we enjoyed tremendous success from our major sports franchises and Houston got back on its feet; however, it is no secret that Harvey made a lasting impact on us, arguably the most impact in the last 30 years. This unforgettable event shattered rain records with over 52 inches of rain and over 27 trillion gallons of water, which made it the wettest hurricane ever measured.  The National Weather Service had to update the color code on its weather charts to properly account for new rain level. According to a California Geophysicist, Harvey’s rainfall of biblical proportions flooded more than one third of the city, which caused the earth’s crust to sink almost an inch because of the weight of the water. The impact of the storm was unimaginable with over 13 million people affected and more than 250,000 families displaced. Harvey destroyed property at an alarming rate and carried an astronomical cost of over $150 billion. To put things into perspective, over 1 million vehicles were destroyed during the storm. On a positive note, despite all of the destruction, the city witnessed unparalleled, selfless acts of heroism from ordinary Houstonians. All nothing short of inspirational.

I recall writing about Harvey on the Wednesday following the storm and described incredible acts of kindness from all around. People from all walks of life dropped their boats in the water to provide much needed relief to overwhelmed first responders. These volunteers rescued countless individuals who were trapped in their homes. Those of us who were fortunate enough to avoid major flooding, despite being confined to our neighborhoods, did not sit idle. Instead, we started a relief effort to bring water, food, clothing, batteries, and countless other supplies to various shelters, as well as opened our homes and offered emotional support to those in dire need. We remained optimistic but knew this was the beginning of a long road to recovery.

The ensuing months would prove to be challenging but even more inspiring. Local superstars used their visibility to accomplish great things. One of Houston’s favorite athletes, JJ Watt, started a fundraising campaign with the initial goal of raising $1 million for flood relief. In less than a week, Watt achieved his goal and went on to raise over $40 million for hurricane relief efforts. Houston watched as Gallery Furniture owner, Jim “Mattress Mack” McIngvale, opened his giant retail warehouse locations to provide shelter to thousands of displaced Houstonians. It didn’t matter whether you were a high-profile athlete, business owner, or hard-working member of Houston’s extensive labor force, you did your part utilizing whatever resources or talents you had at your disposal. We had a job to do and we all stepped up to the challenge.

The Long Road to Recovery: As the road to recovery began, we knew it would require a large effort from the local and surrounding communities. Countless homes were in need of repair, tons of damaged property needed disposal, and security efforts were required to ensure that thieves, vandals, and looters wouldn’t take advantage of these unfortunate and chaotic circumstances. Learning from past natural disaster events around the nation, neighborhoods came together to provide around-the-clock security at various access points to ensure people entering had a valid reason to be there.

Learning from the lessons of Hurricane Katrina a decade earlier, Houstonians were determined to prevent looting and stealing that was witnessed in New Orleans via past news reports. Neighbors coordinated schedules to provide around-the-clock security at various access points in their communities. If someone drove into a subdivision, they were likely met by residents guarding the entrances and exits to ensure that those entering had a valid reason to be present.

More than 250,000 homes that flooded were uninhabitable after the water receded. To make matters worse, many homes were not insured with federal flood insurance because they were not located in a designated “flood zone” and never experienced any flooding during prior storms. Upon entering highly affected neighborhoods, the magnitude of the devastation became apparent. Front yards were covered in endless piles of damaged drywall, furniture, clothing, toys, belongings and garbage. After calculation, all remnants amounted to more than 200 million cubic yards of garbage and debris, which is enough to fill the Houston Texan’s stadium three times over. This never deterred crowds of people from showing up to help. The biggest challenge during these cleanups seemed to be finding a parking spot due to the large turnout of volunteers.

Harvey flooded 800 wastewater treatment plants and 13 superfund sites, which posed a threat as sewage and toxic chemicals spread into certain areas. Due to these dangerous and unsanitary conditions, people had bleach baths set up at various stations so that those working on the houses could submerge their hands, etc. in order to prevent infections and/or illness. Local restaurants and amateur chefs alike provided the hardworking volunteers with breakfast, lunch and dinner so that they could continue around the clock work.

In addition to all of the amazing efforts shown by Houstonians, we were completely overwhelmed by the generosity shown to Houston by people from all over the U.S. Truckloads of supplies arrived at our office daily, so much so that it became difficult to find places to store the items.

We relied on news outlets to cover our situation to remain top of mind to the rest of the states as we worked hard to get our city back up and running. Within weeks, the news began focusing on two other hurricanes, Irma and Maria, as they made their way towards their initial targets, one of which was Houston. While Harvey was a major rain event, these two storms were predominantly wind focused. The potential damage from 185-mile-per-hour winds would have been unimaginable. Thankfully, both storm paths were diverted up the Eastern Coast. While Houstonians were depleted financially, physically, and emotionally, we still found ways to come to the aid of those individuals affected by these new storms. Houstonians sent supplies and planned trips to bring relief to places like Puerto Rico which had been devastated by Maria.

Harvey’s effect on Houston’s Real Estate Market: The months following Harvey would find the Houston real estate market in a state of flux. While several major areas of the city experienced damage, many other parts were unscathed by the storm. While touring both residential and commercial sites, questions regarding the flood plain and flooding became the new norm. Properties located in flood zones that did not take on water further emphasized the importance and benefits of correct property development. On the other hand, several properties and projects outside of the flood zones experienced water damage due to drainage issues, which brought attention to improper development regulations in place at that time. The extensive damage caused by Harvey forced major legislative and regulatory changes for property development, which included new laws and stricter guidelines. As a result, development costs and project timelines have increased significantly because of more thorough due diligence regarding permitting and construction.

Houston never died, in fact, it came alive. Houstonians learned so much about how our city handles disasters and diversity. We don’t shy away from a challenge, instead, we face it head on.

Less than two months after the storm hit, our city, still bound closely together, cheered on our beloved Astros as they made it to the World Series. One couldn’t help but wonder if they were a team of destiny. You see, this city had been brought to its knees, but refused to lay down. Ironically, the Astros did the same as they emerged as the victorious underdogs in one of the most exciting baseball championships ever played. One of the players noted that, if Houstonians could refuse to be defeated by something as devastating as Hurricane Harvey, the Astros owed it to the city of Houston to carry that same attitude. This city needed the win and got it!

When I wrote about this last year, I had such a sense of pride as I described what I had witnessed firsthand and still do. I knew, with the highest level of confidence, that we would rebuild our city quickly. As I write this recollection one year later, I look out the window and see Houstonians moving on with their busy lives; however, underneath the gloss of our daily routines, the memories of that fateful event one year ago remain. Will it happen again? The magnitude of that storm has been deemed a 1,000-year event, which means the statistical likelihood of that amount of rain likely happening again, should not take place for another millennium. Regardless, other natural disasters still remain as risks. There will always be difficulties, more disasters to address, and diversity to overcome. Whether it happens tomorrow or in 1,000 years, Houston will be ready. In fact, this city will take it on with the same vigor. Just like our Astros, Houston has plenty more where that came from.

Written by Mike Spears, SIOR, CCIM, Managing Principal