2016 Hawaii Housing Planning Study

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I Table 2 shows that growth in housing stock Hawaii increased by 16 percent in the years I (units available to the local housing market) was between 2000 and 2014. The County of Hawaii less than one percent over four years. Growth in had the largest average annual increase, adding occupied housing units was not much higher at 2.1 percent to its housing stock each year. I 1.1 percent over four years. Figure 2. Housing Stock by County, 2000-2014 The growth in renter occupied units (5.0%) offset 600 Honolulu —Maui Hawaii I the loss of owner occupied units (-1.7%) and the —Kaua'i —State net gain in occupied housing units ended up at 1.1 percent for the 4-year period. 0 500 1 The larger changes were in vacant units N 400 categories. The State lost 942 vacant and ..- I available housing units between 2011 and 2014. A drop in vacant and available units usually o 300 means the market is tighter, with lower inventory, L;, less time between listing and sale or rent, and ,200 I higher prices. Lii 0 I On the other hand, the vacant and unavailable 100 I housing stock went up by 4,614 units in those last four years. That was an increase of almost o 11 percent for the period. 0 .i N m Q IA N CO rn 0 •-I N m C I The construction slowdown held back growth in 0 0 0 0 o 0 0 0 o 0 0 0 0 0 0 NNNNNNNNNNNNNNN occupied units, but the most important changes 1). Source. SMS calculations from State of Hawaii Time Senes Data were those in vacant units (Figure I Book and ACS Tables in Series B25000. Figure 1.Vacant Housing Units, County of Hawaii, 2009-2014 c. Homeownership 25,000 I—c—Total Vacant Housing Units Homeownership rates have fallen across the — —Vacant and Available nation since the Great Recession and Hawaii ,,, - —Vacant and Unavailable 20,000 Seasonal was no exception.4 Some experts feel the low I_______0„......._______0„........4)- homeownership rate is a sign that the housing market recovery is not yet complete. High 0 15,000 prices, low inventories and a lack of confidence I I ----" :---- in the market have slowed sales, especially in high-priced markets like Hawai'i's. More > 10,000 / important, the impact of the slow recovery falls heaviest on first time buyers. It is their entry to I the market that boosts the homeownership rate. 5,000 _ --- I 0 2009 2010 2011 2012 2013 2014 I Source:ACS Table B25003, 5-yr estimates. 4 American Community Survey rates are different from Over the past 15 years, the average annual those of the Federal Reserve Bank. The Federal I increase in housing stock (occupied plus vacant Reserve Bank of St. Louis' Federal Reserve Economic and available housing units) was about 1 percent Data (FRED) shows the rate climbing after 2011. ACS has it continuing to fall as in the rest of the nation. We per year (Figure 2). Housing stock in the State of will follow ACS data. I Hawaii Housing Planning Study,2016 Page 6 ©SMS, Inc December,2016 I