Jim Gaines talks Houston’s post-Harvey economy, real estate market

​​​HOUSTON – In a new interview with RealtyNewsReport, Real Estate Center Chief Economist Dr. Jim Gaines says Houston’s economy is doing "remarkably well" in light of Hurricane Harvey and the collapse in oil prices.

However, he says the city’s recent floods will have ramifications on the city’s housing market.

"Generally, it’s going to increase the cost of housing across the board anywhere in the city," Gaines said. "Developers will be more cautious, looking at what the requirements will be. Obviously, the Federal Emergency Management Agency (FEMA) is going to redraw the maps, but nobody knows how or when that will happen.

"All the Realtors I’ve talked to say the first question asked about a home is, ‘Did it flood?’ Buyers are going to be savvier and ask, ’Am I in a flood plain?’ Mortgage lenders might start requiring private flood insurance."

​Click here to read the full interview. For more from the Center on Harvey’s impact on Houston, read "H-Town: Houston and Hurricanes," "Ebb and Flow: A Geographic Look at Houston’s Stormy History," and "Imperfect Storm." Be sure to also read yesterday’s Mixed-Use blog post, "Houston housing: A year after Harvey​."