Kakaako could generate $5B

The state Department of Business, Economic Development and Tourism is trying to give the public a better statistical understanding of Kaka­ako as the area undergoes accelerated residential development.

The agency released a report Monday filled with characteristics of Kaka­ako’s population largely drawn from U.S. Census data.

The report also concludes that development in the area is helping ease a housing shortage on Oahu and will generate an economic impact of more than $5 billion.

DBEDT is the agency administratively attached to the Hawaii Community Development Authority, the agency regulating development in Kaka­ako. The head of DBEDT also has a seat on HCDA’s board.

The report’s production follows changes forced on HCDA by the Legislature earlier this year prompted in part by public complaints — largely by residents living next to sites slated for new condominium towers — that HCDA was approving new tower projects too quickly and with questionable adherence to agency rules.

The report, "Kakaako, Urban Core Living," pro­jects that the area’s population will double within several years. In 2010, Kaka­ako’s population was 10,673, up from 6,239 in 2000 and 2,249 in 1990.

There are four condo towers under construction and seven more residential buildings approved that the report said will create 4,237 new homes at a cost of $2 billion. The report said spending by construction workers and other support industries tied to the projects will translate to $4.1 billion in sales over five years or so.

Another $1.2 billion in household income and $215 million in state tax revenue also would be generated by the 11 projects, the report said.

Other interesting statistics in the report noted that 15 percent of Kaka­ako residents walk to work compared with 5 percent of Oahu’s population, and that 42 percent of Kaka­ako households are single people living alone compared with 23 percent of Oahu households, based on 2010 Census data.

When it comes to home occupancy, 14 percent of the 6,131 housing units in Kaka­ako were vacant in 2010, which included units occupied only part of the year and units waiting to be sold or rented. The vacancy rate is about 7 percentage points higher than the rate for Oahu, though the report said it is in line with condos in general.

Of the 5,253 occupied housing units in Kaka­ako, about 46 percent, or 2,436, were occupied by owners while the remaining 54 percent, representing 2,817 units, were occupied by renters in 2010.

The report said that vacancy and homeownership rates in Kaka­ako in 2010 are not high or low enough to raise concerns at this moment.

"However, building-specific statistics tell us that vacancy and homeownership vary substantially depending on what kind of housing options a building provides," the report said. "It implies that efforts to guide each project to meet the city’s true needs would be very important to the success of Kaka­ako in providing more housing options to local residents at reasonable rates."

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