Harvey could impact national, state, Houston economies well into 2018

​​​NEW YORK CITY – Hurricane Harvey will distort measures of the U.S. economy in weeks and months ahead, and it could be well into 2018 before the storm’s effects have fully washed out of the economic data.

Before Harvey, Texas was on track for a 14 percent increase in housing starts this year, according to Real Estate Center Chief Economist Dr. Jim Gaines.

In 2016, Houston alone accounted for about 4 percent of the nation’s permitted housing. All that activity will grind to a halt as builders wait for construction sites to dry out, assess the market and compete for construction workers to rebuild and repair the city.

Gasoline prices spiked due to disruptions to oil refineries in the Houston area. The national average gas price was $2.66 a gallon on Wednesday, according to AAA, up from $2.35 a month ago.