Posted August 30, 2017

Hurricane Harvey hammers Houston home builders

The nation's largest new home market faces a major reset.

Hurricane Harvey is wreaking havoc on residents and businesses. Add home builders, who only just started to recover from the oil-price shock, to the list of those facing a long road back.

Houston is the nation’s largest market for newly constructed homes, and the massive storm, which is dumping an unprecedented rain total on the area, is going to flummox the construction industry there for some time.

Carl Reichardt, who covers home builders for BTIG, wrote Monday morning that he expects “substantially delayed home closings and a dip in new orders in the region.”

There are a few reasons for the interruption. Transportation and logistics will be challenging, for one. Soggy ground will need time to dry before development can proceed. And, would-be homeowners and government agencies will have other priorities.

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Source: MarketWatch