How Hurricane Harvey affected Houston's Economy

Devastating Disaster leads to Happily Ever After?

How did the category four, long lasting Hurricane Harvey affect Houston both physically and economically? Business Reporter Florian Martin recently conducted an interview with the director of the University of Houston’s Institute for Regional Forecasting, Bill Gilmer. A year since the hurricane, Florian is questioning the aftermath of the devastating event. First, Gilmer discussed how, once Houston received the hurricane alert, businesses closed. The city experienced a loss of income as jobs were paused and the city was at a standstill. He explains how economists divide the economy into sections. “Basic activity” is a "section" which consists of the jobs that strengthen and boost the economy. These jobs could involve oil and gas companies or companies that interact with other countries. Fortunately, the offices of these large industries were not heavily affected by the storm. Ship channels were closed for safety purposes but were not flooded. They reopened soon after the hurricane was over. Small businesses, such as the ones on strip centers, play the role of followers of the economy, meaning they do not boost the economy nor are they relied on by the economy as much as the large oil and gas companies. The majority of these small companies are located in neighbourhood areas, extremely affected by the storm, yet the loss of the companies did not pose as a threat to the economy. The fact that oil and gas prices are up to $60 dollars, actually exemplifies an improvement in the economy, not a deterioration.

This interview was important and interesting because it placed emphasis on how Harvey revealed both the weak and strong aspects of our city. The prominent weak factor that was recognized was the need for better drainage systems in areas that were destroyed. The strong aspects of Houston included our sense of community and willingness to help each other out, and the well placed location of the large companies that are crucial to the success of our economy. The multiple articles that are still being written on Harvey provide a learning platform for other cities to ensure they have appropriate and reliable safety precautions, especially in sea level areas. However, although I think this interview was informative, I don’t think all Houstonians would believe that Houston’s economy very little affected by Hurricane Harvey. Owners of small companies for a while, or even still now, suffered and struggle to make money. The value of owning a home that was not flooded also increased. After experiencing the hurricane, people are now more reluctant to buy homes in areas that have not flooded. Struggling to sell these once-flooded homes most likely affected the economy as the properties that were not flooded must be more expensive in order to make up for the low prices of homes that have been flooded. Uninsured houses and the need to repair public roads/bridges also affected the economy in a negative way.

This outcome of this event is relevant to adolescents since they have now experienced a hurricane. They are able to feel sympathy towards other cities who experience natural disasters. The interview serves as a unique example of how little a natural disaster affected the economy of the city. In conclusion, Harvey was an inspiration in the way that a devastating disaster showed our resilience!



Martin, Florian, and Bill Gilmer. “Harvey’s Impact on Houston’s Economy? Not Much.” Houston Public Media, www.houstonpublicmedia.org/articles/shows/bauer-business-focus/2018/08/31/302475/harveys-impact-on-houstons-economy-not-much/. Accessed 28 Jan. 2019.