Storms Wiped Out Estimated $67B in Housing

Hurricanes Katrina and Rita wiped out residential capital stock totaling $67 billion, and only $37 billion is insured, according to new estimates by the U.S. Bureau of Economic Analysis.Hurricane Katrina caused most of the damage to residential housing, according to BEA estimates that first appeared in the Economic Report of the President, released Feb. 13. The president's economic report also cites Red Cross damage assessments for the two hurricanes (plus Hurricane Wilma), which found that 213,000 housing units were destroyed, 169,000 units suffered major damage (and are uninhabitable), and another 220,000 units had minor damage. "The insured structures are likely to be rebuilt (although not necessarily in the same location), and many of the uninsured structures may be rebuilt as well," the president's report says. "The pace of reconstruction is uncertain but is likely to take place over a period of three years or so."