HOUSTON, TEXAS, June 3, 2015 -- According to new research conducted by economists at BBVA Compass, a Sunbelt-based financial institution, the economic impact of the severe rainfall that left many parts of the Houston metropolitan area underwater at the end of May could range from $200 to $550 million.
Heavy storm surges inundated many parts of Oklahoma and Texas over the Memorial Day holiday weekend, causing fatal and disastrous flooding across the two states (see "Fatal flooding inundates Texas, Oklahoma"). Thousands of Houston's structures were damaged as a result, with parts of Southwest Houston receiving up to 11 inches of rain.
The estimate includes damage to housing, structures and cars, as well as the total value of lost economic activity and sales tax revenues from May 25-26. "The material cost of the recent flooding is significant, but the economic impact for Houston will be lower than Hurricane Ike and Tropical Storm Allison, which were around $154 billion and $6.7 billion respectively," said Marcial Nava, BBVA senior economist.
The estimate is preliminary, with damages still being tallied -- it's unknown how much it will cost to repair the Southwest Wastewater Treatment Plant, for example. The damage outside of the greater Houston area was substantial as well, with 70 counties -- 28 percent of total counties in Texas -- declared disaster areas. Additional information can be found in the report, which can be accessed here.
See also:
"When It Rains, It Pours: New Metering Initiatives in the Midst of a Flood"
"Planned Sustainability: The Greening of Water Infrastructure"
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