Data Watch: The Cost of the Summer Hurricanes
The financial hit to those in the path of this year’s devastating storms could be as much as $200,000 for some owners
Erin Carlyle
October 16, 2017
Houzz Editorial Staff. Writing about the cost of renovation and what it takes to remodel. Former Forbes real estate reporter. Fascinated by cool homes, watching the bottom line.
Houzz Editorial Staff. Writing about the cost of renovation and what it takes to... More
The greatest tragedy exacted by hurricanes Harvey, Irma, and Maria, which hammered the Southeastern United States and the Caribbean in August and September, was the number of people who lost their lives — at latest count at 77 due to Harvey, 132 stemming from Irma and 48 so far in Puerto Rico related to Maria.
And in the aftermath, survivors have been hit with a financial wallop. As part of its latest Houzz Renovation Barometer report, Houzz asked a panel of renovation industry firms about the financial effect of these disasters. While homeowners are facing significant financial impact, businesses, too, are feeling the storm’s financial effects — from a shortage of available workers to project delays. Nonetheless, firms expect a rebound as rebuilding commences. Here’s what we know at this time.
And in the aftermath, survivors have been hit with a financial wallop. As part of its latest Houzz Renovation Barometer report, Houzz asked a panel of renovation industry firms about the financial effect of these disasters. While homeowners are facing significant financial impact, businesses, too, are feeling the storm’s financial effects — from a shortage of available workers to project delays. Nonetheless, firms expect a rebound as rebuilding commences. Here’s what we know at this time.
September 9, 2017. Humble, Texas. Floodwater from Hurricane Harvey rose over 12 feet and ripped off the deck in front of this home. Photo by Chuck Haupt for the American Red Cross
The Houzz Renovation Barometer survey was fielded September 28 to October 12, 2017, and responses were received from 2,241 professionals. Companies in the Houston area estimated the average cost to homeowners to fix damage from Harvey at $111,000 per household, the survey found. One in 10 companies in the Houston area is estimating the total repair and/or renovation costs due to Harvey to be greater than an average of $200,000 per household.
For Irma, renovation companies on the Southwestern Florida costal mainland, where the flooding was less severe, estimated the average cost to homeowners to fix damage at $13,000, the survey found.
The professionals on our panel who provided these numbers have businesses in the Houston-Sugar Land-Baytown, Texas, metro area for Harvey; and for Irma the Cape Coral-Fort Myers, Sarasota-Bradenton-Venice, Tampa-St. Petersburg-Clearwater, Naples-Marco Island, and Punta Gorda, Florida, metro areas. Our panel did not include renovation professionals with offices located in Key West, but businesses in other metro areas on the Florida coast may have served the island.
For Irma, renovation companies on the Southwestern Florida costal mainland, where the flooding was less severe, estimated the average cost to homeowners to fix damage at $13,000, the survey found.
The professionals on our panel who provided these numbers have businesses in the Houston-Sugar Land-Baytown, Texas, metro area for Harvey; and for Irma the Cape Coral-Fort Myers, Sarasota-Bradenton-Venice, Tampa-St. Petersburg-Clearwater, Naples-Marco Island, and Punta Gorda, Florida, metro areas. Our panel did not include renovation professionals with offices located in Key West, but businesses in other metro areas on the Florida coast may have served the island.
Flooding in Clay County, Florida. Photo by Tim Donovan, Florida Fish and Wildlife
Over the short term, hurricanes hurt renovation-related businesses, specifically in the first two weeks after these storms made landfall. Forty-one percent of businesses in Irma-affected areas suspended operations during this period, while 28 percent of those in Harvey-affected areas did so. More firms hit by Harvey (91 percent) closed shop for one or more weeks compared to Irma (65 percent).
Puerto Rico National Guard soldiers, along with volunteers of the Puerto Rico State Guard, work together to fulfill the road clearing mission at Punta Santiago in Humacao, Puerto Rico on September 27. Photo by SPC Hamiel Irizarry, The National Guard
The survey went out just one week after Maria made landfall in Puerto Rico, and the number of responses from that U.S. territory were limited. But the numbers we do know help tell the story. Nearly a month after the storm hit, the majority of the island still doesn’t have power. A reported one-third of the population still lacks access to clean drinking water. More than 100 people remain missing, and the death count is expected to rise. Moody’s Analytics estimates the island has sustained damage of some $45 to $95 billion. To put those figures into perspective, consider that the island’s annual economic output is $103.1 billion.
The survey went out just one week after Maria made landfall in Puerto Rico, and the number of responses from that U.S. territory were limited. But the numbers we do know help tell the story. Nearly a month after the storm hit, the majority of the island still doesn’t have power. A reported one-third of the population still lacks access to clean drinking water. More than 100 people remain missing, and the death count is expected to rise. Moody’s Analytics estimates the island has sustained damage of some $45 to $95 billion. To put those figures into perspective, consider that the island’s annual economic output is $103.1 billion.
Businesses face challenges but anticipate recovery. Like the homeowners affected by the natural disasters, businesses expect some financial fallout from these storms, but a majority expect to recover within one year. One of the effects of natural disasters on the renovation industry is that many of them will see their businesses boom once people are ready to rebuild. At the same time, the hurricanes worsened labor shortages across the region and increased project backlogs by about two weeks, the survey found.
Your turn: Do you have friends or family in affected areas? How are your loved ones doing? Please share your photos and stories in the Comments.
More
Download the full Houzz Renovation Barometer Q3 2017 report
Compare this quarter’s scores with those from Q2 2017
How to Help
Hurricane Maria: How You Can Help
Hurricane Irma: How You Can Help
Hurricane Harvey: How You Can Help
Your turn: Do you have friends or family in affected areas? How are your loved ones doing? Please share your photos and stories in the Comments.
More
Download the full Houzz Renovation Barometer Q3 2017 report
Compare this quarter’s scores with those from Q2 2017
How to Help
Hurricane Maria: How You Can Help
Hurricane Irma: How You Can Help
Hurricane Harvey: How You Can Help
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Raisa, you and Rockport for us. I guess we didn't have enough deaths to be interested in. Hope Florida Keys is getting back on it's feet!
Another city your report doesn't include is Atlanta, GA,
yes Atlanta had plenty of damage! Approximately 75% of our daughter's home was destroyed by a very large oak tree with a full canopy in her neighbor's yard and dropped by the wind. Four other homes in her neighborhood alone were heavily damaged by mature trees falling to the winds that Tuesday.
The insurance company estimate for the 'home repair only' is well over $350K, that doesn't include damage to the landscape, furnishings and personal property in the home. The estimated time to finish the rebuild is 10-12 months because of the lack of sufficient qualified subcontractors. All this from one of Irma's storm bands as the storm moved north of our area. We're all thankful she wasn't hurt or worse thanks to her quick thinking to go to the basement but the emotional and physical damage to her and her neighbors is devastating nonetheless.
We live in Florida and were in the hurricane Mathew destruction oct 2016. We had several trees fall around us, 31 actually, and have had 2 fall on our home and 5 of the on a 6ft foundation wall. The worst was a historical live oak in The front estimated over 200 feet tall and was 15 feet in diameter. It snapped from the high winds and left a 40 ft stump. It crashed breaking our entire driveway and the underground utilities under it and ripped down our powerlines and pole knocking all the power out on our road for over 2 weeks. The 5 tall water oaks that fell on the foundation wall caused the wall to buckle and we lost a lot of fill. Then the 160 foot palm trees came up rooted from the next street over behind us and was thrown in the wind like a yard dart and crashed through our roof breaking 4 trusses out entire pool enclosure cut in half and damaged the pool deck. We had the tops of the trees of our neighbors fall through our wooden deck that attaches to our house and is 1200 sq. Feet and, and extends from our pool deck. The tree that fell into the roof damaged electrical wires which caused us to replace the west end of the house, including kitchen appliances, fans, lightening, garage door openers, and pool equipment and ac. The electrical that was ripped out also caused some shifting as we were told wires touched and shorted out. Our entire roof had to be redone, our interior ceiling had to be replaced and the trusses could not be skittered but had to be replaced. We also had personal property damage, and pictures lost, we had tile damage inside from the tree falls, causing us to have to redo the tile about 70%. We have managed to get the roof, trusses, ceiling, pool, deck, driveway, done, but we are awaiting finishing the foundation wall rebuild final touches, however a lot of the interior work is still underway a year and a half later. We had the worst luck with contractors, as we hired some big names and some that were local businesses. Everyone worked at such a lacksidazical pace. It has been awful. Though we are blessed to be alive. Several homes in our area were damaged by these large historical oaks however they did not care for the trees and they came up rooted and crashed on the entire houses. The county makes people keep these trees during building but no one instructs them of how to care for them and how close NOT to build to them. So they all lost everything. People said oh it wasnt that bad. However, in our area about 5 miles west of the water (beach 5 miles, river 3 miles) we experienced a major devastation. Our totals have come to approximately $180,000 so far. And I am disabled so our home and pool is ADAcompliant. .
Our insurance has been the least difficult, though we have had 22 claim Owners, and one field adjuster messed up and redid our original claim causing major issues and delays as he was confused on our state guidelines as opposed to his state he resided in. (Crazy right?) Yah this caused us to loose about 9 weeks of work because the repairs we were instructed to start, the funds we had been given disappeared.