Per BBC, Texas authorities are estimating that the damage resulting from Hurricane Harvey is at a staggering $125 billion. In addition to the loss of at least 30 lives, thousands of buildings have been flooded or otherwise destroyed. The devastation will linger on for quite some time, given the scale of the disaster.

Hurricane Harvey damage

There has already been an estimated $10 billion in infrastructure damage, with another $15 billion lost in business costs. However, this is just a fraction when compared with the trauma affecting families.

The Federal Emergency Management Agency stated that 350,000 families have already registered for federal aid.

“Analysts say they expect that number to rise to about 500,000,” according to a recent BBC report. At the same time, over 37,000 individuals have filed claims with the National Flood Insurance Program, a number that is also likely to rise.

In all, the current cost of Hurricane Harvey is estimated to be $125 billion. To put this in perspective, the total economic impact of Hurricane Katrina was around $108 billion.

Other economic costs of Hurricane Harvey

Oil and gas prices have risen since the storm, mostly thanks to Texas being such a large producer of the nation’s petrol, particularly along the Gulf Coast. Many fuel shortages have already been reported in Texas. The loss of a number of refineries will be relevant to more than just the state -- the rest of the nation is feeling the tremors of Hurricane Harvey since nearly a third of all United States oil refining capacity is affected.

Hurricane Katrina, on the other hand, affected nearly twenty percent of all United States oil production.

Houston, one of numerous devastated cities, is one of the largest markets in the country, responsible for an estimated $500 billion in economic activity per year. Hurricane Harvey has put a hard brake on much of this, and it is hard to say how much the storm will prevent a bounce back to Houston’s prior status.

Ideally, Relief efforts may be largely responsible for propping the city back on its feet.

The displacement of so many families is also of major concern. With so many people needing to move out of the area, and with seemingly little to come back to for many of them, getting people resettled is paramount. Many relief funds from organizations large and small have already been started, and the effort to heal the wounds from Harvey is underway.