According to a study created by Hawaii Appleseed Center for Law and Economic Justice, the "fair market rent" for a two-bedroom apartment in Honolulu County has increased nearly 70 percent since 2005. This data, gathered from the Housing and Urban Development Department, states that a two-bedroom cost approximately $1,087 per month in 2005, and now costs about $1,833 per month. In comparison, the Bureau of Labor Statistics noted that median wages increased by only 22 percent to $18.18 per hour during this same time period.
The biggest challenge is that very few condominium or single family homes are being built for people who earn less than the median income. This is especially concerning considering that 43 percent of households in Hawaii rent. State Senator Laura Thielen stated that policymakers need to ensure that local needs are met, Thielen stated, "In this global economy you have a large number of people internationally who are bringing their resources to desirable cities and investing in real estate as a safe place to put their money. You see this in London, in New York, and I think you see it in Honolulu. Cities like London have seen a lot of their residents pushed out of the city and into other areas because of this buildup of pressure. The problem we have in Hawaii is, How far out can we be pushed? We're on an island."
One proposal to help with the shortage of affordable housing units include building "micro units" which would have less than 350 sq ft of space. These could work very well for young people, empty-nesters or seniors who no longer need as large of a space.
Source: Honolulu Star Advertiser, 8-2-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
