In 2019, Hawaii Community Foundation’s CHANGE framework report concluded that “the inadequate supply of affordable housing has resulted in housing costs reaching an intolerable level.”

And that was before mortgage interest rates rose from 2.5% to 7.5%, and rising inflation costs tipped families already living on shoestring budgets over the edge.

In Honolulu, the total cost of home ownership has increased so dramatically that from 2021 to 2022, the median income required in Honolulu to own a home rose 47.1% to $198,854 — or 176% of the area median income (AMI). Aloha United Way’s 2022 ALICE report found that nearly 1 in 5 Oahu residents struggles to pay housing expenses.

We appreciate that leaders throughout the state have made housing a priority — because we all know that Hawaii lacks adequate housing to meet current and future demand, and the housing that is available is often financially unattainable for working families.

Hawaii’s housing crisis impacts kamaaina from all counties and all walks of life. When more than half of renters spend more than 30% of their income on housing, it’s difficult for many families to imagine a future that includes home ownership.

The federal Section 8 housing program and other income-restricted housing projects serve those who earn below 60% of the AMI. Unfortunately, there simply isn’t enough inventory generated by these projects and programs to meet demand.

Affordable housing solutions are also limited for Hawaii’s working families who earn between 80% and 140% of the area median income. This “gap group” includes teachers, firefighters, health care workers and civil servants.

This gap group earns too much to qualify for most federal, state or county housing assistance programs. In addition, developers seeking to serve this market with for-sale housing have limited incentives available to them and can’t utilize programs such as Low-Income Housing Tax Credits to build homes for this group. Sadly, as market rate home and condo prices continue to rise, the gap income earners increasingly find themselves priced out of the market.

We all know we have an affordable housing problem. Study after study has been commissioned, working groups have been convened, but we’ve failed to bring enough affordable homes to market — and it’s why more and more kamaaina are leaving our state.

It’s time for action. Closing this seemingly insurmountable gap faced by working families across the economic spectrum requires holistic, innovative and systemic changes from both government and the private sector.

It’s why Housing Hawaii’s Future equips young locals with the knowledge and skills they need to advocate for workforce housing solutions.

It’s why the Hawaii Community Foundation continues to engage stakeholders who are on the frontlines of fighting for equitable solutions to the many pressing challenges that Hawaii families face.

And it’s why we must explore all housing solutions presented to us. By coming together, we can find a variety of paths forward that address different segments of Hawaii residents facing housing challenges. As we work together to grow housing solutions in Hawaii, projects must address a variety of needs — including creating homes for the 80-140% AMI “gap income” group.

One project or one solution alone will not solve the plethora of housing challenges faced in our state. By investing in a diverse range of solutions, we can turn the tide and create hope that Hawaii’s working families can build their futures here at home.

Micah A. Kane is CEO/president of the Hawaii Community Foundation; Sterling Higa is executive director of Housing Hawaii’s Future.