Two months after Harvey hit the Houston area, this region has cleared enough post-flood debris from its neighborhoods to fill 700 Olympic-size pools. But today tens of thousands of people are still living in temporary housing and some schools remain closed.Moody's Analytics estimates that Harvey caused $73.5 billion in economic loss-making it the second-costliest natural disaster in U.S. history after Hurricane Katrina. The estimate includes costs for destruction of property and loss of output due to lost productivity.
Most of that damage was sustained in Harris County, Texas, which includes the heavily populated Greater Houston region. While the majority of businesses are back up and running, city and county officials say the recovery from personal loss presents a bigger challenge that could drag on for years.
As of mid-October, almost 61,500 people displaced by Harvey were still living in hotel rooms, with costs paid by the Federal Emergency Management Agency. The displaced occupied almost 22,000 rooms across 37 states, mostly in Harris County. Red Cross-affiliated shelters housed 530 hurricane victims in Texas last week.
"Peoples' lives have literally been changed. This is nothing that's going to be over anytime soon," said Dimetra K. Hamilton, spokeswoman for the Harris County Engineering Department. "This is the long haul."
Texas employment fell in the wake of the storm, with about 4,400 jobs lost in September, mostly in leisure and hospitality-a 0.4% decline from August, after months of steady growth, according to the Federal Reserve Bank of Dallas. But the bank expects figures to rebound in October and the hurricane's effect on 2017 employment growth to be minimal.
Nationally, economic growth remained strong despite Harvey and the more recent Hurricane Irma in Florida. Gross domestic product expanded at a 3% annual rate in the third quarter, compared with 3.1% annual growth in the second quarter, according to the Commerce Department.
The hurricanes likely suppressed business activity such as oil-and-gas extraction in Texas and agricultural production in Florida. But the storms likely boosted other types of activity, such as emergency services and repair efforts. The Commerce Department said "it is not possible to estimate the overall impact of Hurricanes Harvey and Irma on 2017 third-quarter GDP."
Harvey made landfall Aug. 25, bringing high winds and 4 feet of rainfall in some areas, and submerging up to 30% of Harris County. The storm is being blamed for the deaths of 88 people, with five others under review, according to preliminary results from the Texas Department of State Health Services.
Texas Gov. Greg Abbott projects the state will need between $150 billion to $180 billion in federal aid to recover. FEMA estimates that about $5.07 billion in federal funding has already been provided for Harvey-related expenses such as temporary housing, home repairs or replacements, National Flood Insurance Program payouts, and low-interest loans for businesses, renters and homeowners.
City and county officials are also dipping into local funds. Houston projects its out-of-pocket costs will reach about $1 billion.
"The City Council has pretty much already emptied out our emergency reserve fund, which is almost $200 million," said Alan Bernstein, communications director for Houston Mayor Sylvester Turner.
Mr. Turner and Harris County Judge Ed Emmett set up the Hurricane Harvey Relief Fund to help victims of the storm, which has raised about $80 million, Mr. Bernstein said.
The final count of homes damaged by Harvey is still unknown, but Harris County officials say more than 136,000 structures in the county flooded.
"We know that thousands of people are not going to be able to return to their homes anytime soon," said Mr. Bernstein, the mayor's communications director. "This is a long-term affliction, there's no doubt about it."
Houston resident Frank Inselbuch was already in the process of having his home raised under a federal program when Harvey struck, flooding his house with about 4 feet of water. It was the third major flood since 2006 for his one-story, 4,200-square-foot home in the Meyerland area of southwest Houston, close to a bayou prone to flooding.
Mr. Inselbuch's home is now lifted about 5 feet, 8 inches higher, paid for in part by a federal grant of $330,000. In total, the lift and repairs to his home are expected to cost around $780,000. An additional $350,000 will be covered by the National Flood Insurance Program.
Mr. Inselbuch, who expects to pay about $100,000 himself, said moving wasn't an option. "You can't just pick up and move; you have a mortgage on this property," he said as he sat in a makeshift office in his gutted home, devoid of walls and flooring.
Southeast Texas school systems also remain in recovery mode. The Houston Independent School District still has six schools closed due to damage. The district estimates that repairs will run to $78 million, but officials expect that to increase.
Harmony Public Schools, Texas' largest charter school network, reopened its 19 Houston-area schools on Sept. 11, after closing them for two weeks due to Harvey destruction. Teachers and staff increased their home visits to check on students during the closures and have continued their visits since reopening the schools.
During one check, school officials found Jessica Villagomez, 25, and her three children living in squalor in temporary housing after being moved from their flooded apartment. Ms. Villagomez was working part time and broke. The school offered her a full-time cafeteria job.
"We had lost everything," Ms. Villagomez said. "I'm thankful for everybody."