I am a Realtor with Marcus & Associates.
We have been in business for 42 years and our best days are when we can help a young family buy a home.
But today, there are so few affordably priced homes, that every day we see more disappointed faces as the prices of homes rise, as more affluent buyers come into Hawaii.
Our middle- income families are being priced out of the market. The inventory for homes within their reach are shrinking, and there simply are not enough homes to meet demand.
For developers, it is difficult to keep home prices down because of the extensive and lengthy process to obtain permits and approvals, as well as requirements for infrastructure improvements and other impact fees.
Money for developments often goes to luxury projects that have higher profit margins, compared to affordable housing projects.
It’s all too obvious: We just don’t have an adequate supply of homes priced for the middle-income buyers.
That’s why the redevelopment in Kakaako is one of the best places to provide affordably priced condominiums for people who have been priced out of the market.
The Hawaii Community Development Authority (HCDA) was created to encourage development with rules written and approved through extensive community input, including residents, develop- ers, elected officials and environmental groups.
Workforce housing is a special category created two years ago, specifically targeted at the middle- income buyers.
When HCDA came out with the first workforce housing project last year, the response was phenomenal. All units were priced under $500,000. Tower A of the 801 South St. project was virtually sold out in one day.
More than 6,000 people visited our sales office. Many were first-time buyers who had been saving for years.
Some had been renting for decades and were thrilled to be able to afford a home.
Here’s what we saw:
» The proud parents helping their recently graduated-from-college son purchase his first home and begin to build a life here in Hawaii instead of being forced to live on the mainland.
» The nurse, now living in Mililani, who will save more than two hours daily in commuting time to and from work — time that she can spend with her two young children.
» The housekeeper working at a Waikiki hotel who now doesn’t have to set her alarm at 4 a.m. to catch the bus from Ewa to get to work on time.
Several hundred people who weren’t able to buy are now waiting for Tower B of 801 South St.
Because of the demand for family-sized homes, the second phase of 801 South St. includes a mix of one-, two- and three-bedroom units. We have received inquiries from potential buyers who don’t want to miss the opportunity to finally own a home in the urban area of Honolulu.
It is too bad Kakaako has become a headline for opposing groups concerned with development and growth in urban Honolulu. These naysayers have forgotten that Kakaako was designed to be an urban center, with higher density in order to avoid urban sprawl and preserve the rural areas of Oahu.
We understand some neighboring buildings have concern for their views.
We can’t help but remind them that Kakaako was planned and approved as a community for people all through the economic spectrum, featuring both high- and low-rise condominium homes for those earning the wages of regular Hono-lulu working people, along with luxury units for the more affluent.
I hope HCDA will approve the second tower of 801 South St.
It will give hope to thousands of Honolulu residents who dream of owning a home.