Housing that regular folks can afford
If there was any doubt that Hawaii needs more moderately priced housing, look no further than Kapiolani Residence, a planned high-rise condominium near Ala Moana Center.
The developer, SamKoo Pacific LLC, reports that about 900 local residents want to get into the 292 affordable units in the 484-unit tower.
No doubt the scarcity of such reasonably priced condos triggered the response; and the proximity to the eventual Ala Moana rail transit station makes them even more attractive.
Surely the same response would happen at the Mana‘olana market- priced condominium/hotel project, located across from the Hawaii Convention Center — if the developer chose to build some affordable units at that prime location.
Unfortunately, that developer, Mana‘olana Partners, is resisting, preferring instead to buy its way out of its obligation or build just 16 rental units elsewhere.
8 responses to “Housing that regular folks can afford”
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A very limited commodity; affordable housing!
The biggest single cause of the loss of affordable long-term rental homes for local families in our neighborhoods is the military.
Hawaii has the highest density of active duty service members and families of any other state, nearly 50,000, and teens of thousands get between $2000-$4000 every month for housing, plus COLA – again the highest subsidies in the nation. Local families can’t compete with that kind of guaranteed cash and have been displaced.
The current shortfall of 20,000 units is roughly the same as the number of military occupied homes in our neighborhoods.
Possible solutions to this include building more on-base housing, reducing the ponderous military presence in Hawaii, and/or eliminating the bloated tax-payer-funded military housing allowance. Not only would these steps open up these units for tens of thousands of local families, it could reduce the rents for all the rest, spreading affordability more broadly.
Very thoughtful perspective. Mahalo.
DannoBoy – Total shibai post, no reference to back up your claims. Let me correct you.
Back in 2014 a study was done to see if the military was the primary reason for higher housing demand, rental costs, effect on the local market. Report noted the military in Hawaii was responsible for 18% of the state’s income, 16% of the state’s workers, about 101,000 jobs. In 2014, total military population was 50,888 active duty, 64,408 military dependents, total of 115,296.
From the article, “Hawaiʻi economist Paul Brewbaker said it’s inarguable that military have an edge in the housing market. However, he states that, “I would say that their numbers are insufficient to represent a per se distorting influence on home prices or rents in general.”
Ref: http://hawaiiindependent.net/story/is-hawaiis-military-presence-pricing-local-residents-out-of-the-housing-mar
Proof your trying to blame the Military for the Nei’s housing issues is pure shibai. Standard for Rookie posters.
No need to thank me for correcting you. It’s what I do. Have a great week.
[Thank you local guy. That is a great article. Let me qupote from its content for readers]
Is Hawaiʻi’s military presence pricing local residents out of the housing market?
Housing demand is exceeding the supply more than ever, and high housing allowances may give military an edge.
It’s easy to feel the military’s presence in Hawaiʻi. Besides its significant land holdings, the military is one of the two largest industries in the state (the other being tourism). A 2011 study by the RAND Corporation showed that military spending in Hawaiʻi was linked to 18 percent of the state’s economy, and direct military and civilian jobs made up 16 percent of the state’s workers (about 101,000 jobs).
What’s less talked about is the effect military presence has on the cost of living, which has historically been high. The median price for a single family home reached a staggering $700,000 this year, and is projected to keep climbing. What effect, if any, does the military presence and their generous compensation package have on housing?
The Figures
Hawaiʻi has one of the largest United States military populations in the world, with 50,088 servicemen and women stationed here. Hawaii has the second highest amount of active duty military personnel; Japan has 50,631. Hawaiʻi also has 64,408 military dependents, while Japan has less than 5,000.
The base pay of an E-6 enlisted individual (a petty officer in the navy or a sergeant in the army) with two dependents and not living in the barracks is $37,152. They are also provided with an annual $35,424 (in Honolulu County) housing allowance and more than $1,000 a month as a “cost of living allowance,” as Hawaiʻi is considered an overseas site.
This brings total income to $84,672, without taking into account the heavily subsidized or free health care under the Tricare program and tax-free grocery and department stores such as the Navy Exchange in Aiea.
The base pay of an O-2 officer (lieutenant) with two dependents, not living in the barracks and having served for eight years is $55,584, with a housing allowance of $35,352. The cost of living allowance is slightly higher, at $1,122 a month, bringing annual income to $104,400.
Under Hawaiʻi law, nonresident military personnel do not pay Hawaiʻi state taxes.
Context
According to U.S. Census data, the median household income in Honolulu is $72,292, and the average rent within 10 miles of Honolulu for a two-bedroom aparment is 25,932 a year, or $2,161 a month.
Non-military income, after subtracting annual average rent costs, leaves $46,360 to cover healthcare, utilities and cost of living.
Assuming the $25,932 rent cost, an E-6 combatant has $58,740 left over, and the O-2 combatant has 78,468, giving them a 27 percent and 69 percent greater leftover income than a local non-military resident, respectively.
For comparisons sake, a teacher employed at the Hawaii Department of Education for the 2013-2014 school year had a salary ranging from $33,169 to $58,042, depending on their level of education and experience. This would leave $7,237 and $32,110, clearly not enough to live on.
This could also be calculated by looking at the median rent in Honolulu in 2012, which was $1,483. This comes out to $17,796 for the year, giving the E-6 combatant $66,876 leftover and the O-2 combatant $86,604.
The teacher on the bottom rung of the pay scale would still only have $15,373 left and the highest earning teacher would have $40,246, less than half the O-2 officer.
Maybe they should move troops from Oahu to Detroit. There’s no civilian housing shortage there, and its economy could site use the boost.
As long as troops are here, maybe they could at least start paying state income tax?
What a verbose post. Copy paste, no point. Just trying to look impressive. Clearly you attended the Nei’s failing educational system and never learned how to make a point.
No clue how military pay state income tax. As in to their state of record or where they own property. They do however pay sales tax when buying off base.
Sorry but twice nothing is still nothing. Professional rookie to the core.
No need to thank me for correcting you. It’s what I do. Have a great week.
Wow. How rude.
I just quoted from the reference you yourself posted and asked folks to read. What’s the big deal?