Turns out things are more than twice as bad for Houston housing after Harvey

Downtown Houston, shown from the north in an Aug. 8, 1998 photo, is slowly being transformed from a business-only section of the city into an apartment building and retail area. Numerous loft apartments and restaurants have moved into downtown Houston over the past year. (AP Photo/Brett Coomer)

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A recent study by an apartment industry group showed rents in more than a dozen Houston ZIP codes increased by at least 10 percent since Hurricane Harvey, with one area showing an increase of more than 50 percent.

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The industry group RentHop analyzed data from dozens of ZIP codes across the Houston area, comparing pre- and post-Harvey rental rates.

According to the study’s results, in the months after the storm, 19 ZIP codes saw rental rate increases of at least 10 percent, including six with increases of 20 percent or more.

The largest increase came from Bellaire (77401), with data showing rents in the Houston suburb post-Harvey rising by 52 percent, from a median of $1,525 in July to a median of $2,325 in September.

RELATED: Study Shows Houston is the Least Affordable City in Texas for Renters

Other areas seeing steep increases in rental rates reportedly included downtown Houston (77002), up 45 percent; Dickinson (77539) in southeast Houston, up 44 percent; Greenway/Upper Kirby (77046), up 26 percent; the Museum District (77004) and River Oaks (77019), both up 21 percent.

The authors of the report say they theorize the high demand prior to Harvey combined with a decreased supply due to the extensive flood damage at many Houston apartment complexes came together in a perfect storm of their own to drive rates up.

In some good news, since most rental leases are 12-month contracts, the authors also say they “do not see anything to indicate illegal price increases” or “price gouging” practices.

RELATED: Landlord Gives Residents Six Days To Leave Flood-Damaged Apartments

Additionally, the report shows the problem of rising rents is largely limited to areas where the heaviest flooding occurred, including Houston’s east side, where the median rental rates post-Harvey actually decreased.

The study authors speculate lower rates could be due to an increased number of listings, either from tenants who moved out of damaged apartments, or from entrepreneurs renting out rooms to those left homeless due to the storm.

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