According to state economist Eugene Tian, the island of Oahu needs to create 3,525 new homes per year to keep up with the state's anticipated 1 percent population growth. However, Tian noted that the over the last three years, there were only an average of 1,616 residential units being built, leaving an annual deficit of 1,913 homes. Tian stated, "We are not building enough. Housing development is behind population growth. We are behind." Tian noted that even the 5,000 condominium units that are planned for the Kakaako neighborhood will not be enough to cover the deficit, due to the fact that actual construction of these buildings will take place over the next 15 to 20 years. The neighbor islands, in comparison to Oahu, are in relatively good shape due to a slower economic recovery and overbuilding during the last real estate market boom.
Paul Brewbaker, the chief economist of TZ Economics, commented, "People seem to have lost all context for what constitutes ‘a lot' of home-building. Kakaako condos totaling 5,500 units this decade sounds pathetic."
Source: Honolulu Star Advertiser, 5-5-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
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