We are now starting to realize the severity of the damage Harvey caused on Texas and Louisiana. The recovery process is requiring more time and resources than anyone could have predicted.
The recovery effort in areas directly hit by the hurricane have rightly garnered the majority of the attention, but citizens in surrounding states are starting to feel the butterfly effect. We may just be starting to learn the severity of Harvey’s national impact.
Increased Prices, Lower Availability
In the thick of hurricane preparation, many major retailers began sending supplies to help the victims of Harvey. Products such as generators, flashlights, and chainsaws were taken directly off the shelves of surrounding hardware stores to help in the relief effort. Large stores like Home Depot and Lowe’s have disaster strategies that allow financial security through the relief process. But smaller, privately owned shops feel the backlash hitting a lot closer to home.
As a result, prices on metal, lumber, power tools, and other common goods are at a high in surrounding states. Despite high prices, the availability of these goods has also been inconsistent. Many people are coming from far and wide to purchase the supplies they vitally need. If you live in one of the surrounding states, this is simply the wrong time for home improvement.
Booming Real Estate Market
Though many hurricane victims are trying to repair damages to their homes and neighborhoods, thousands are moving to surrounding states. The post-hurricane Exodus has served as a boost for home prices in New Mexico, Arizona, and southern Oklahoma. Residents of those areas who have been considering a move are jumping on this opportunity. Phoenix moving companies are helping a huge number of displaced victims move to Arizona.
Beyond fluctuating prices, such an Exodus has a huge impact on neighborhoods. Many communities in the south and southwest are facing the challenge of accommodating hundreds of new faces. Harvey took place at the beginning of a new school year, and has been a huge obstacle for the academic success of Houston’s children. Many families are moving for the sole purpose of ensuring their children a full school year of learning.
Diminished Job Market and Economy
The job market of any state is an issue of supply and demand. When many new people suddenly enter an area, the number of available jobs diminishes quickly. Such is the case for those states which have taken the most victims from hurricane Harvey. The United States has been enjoying a consistent increase in job opportunities over the past two years, but that trend figures to slow down in the coming months. Though unemployment rates in the Houston area will be the highest, the trend is expected to reverberate throughout the country.
Perhaps the most infamous national drawback of Harvey is its impact on oil prices. Whether it should be or not, the price of gas is often viewed as a direct reflection of the economy. In the days following the hurricane, the surrounding states suffered a massive bump in gas prices. Weeks later, some areas are still reporting higher prices. Though Harvey has boosted regional real estate markets, those numbers don’t represent a true economy. When the country’s oil capitol gets put under water, the effect is felt far and wide.
From gas prices to real estate, hurricane Harvey has left its mark on the economy of Texas and the rest of the south. Disasters the likes of Harvey can be felt across the entire country. The people of Texas and Louisiana still have a long road to recovery, and those from surrounding states are along for the ride.
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