2016 Hawaii Housing Planning Study

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L LFigure 3. Homeownership Rates, 1990-2014 for necessities and are more likely to qualify for 70% mortgage loans. L In 2016, the proportion of Hawaii households m 65% -- - -- paying less than 30 percent of household income r `` for shelter (rent or mortgage plus utilities) was up 3_- L ca. _ -_ to 58 percent.5 We had 11 percent paying 30 to 60% , 39 percent and 7 percent with STI ratios of o �_ between 40 and 50 percent. Our severely cost I burdened households were at 18 percent. 55% Table 3. Shelter-to-Income Ratio by County, 2016 1 50% Shelter County _ Payment State 1992 1999 2003 2009 2011 2013 as%of HH Hawaii Honolulu Kauai Maui Year Income I None 27.0% 21.3% 20.8% 15.0% 21.4% —State—Hawaii Honolulu Maui---Kauai Less than 37 2% 37 1% 36.8% 35 2% 36 8% 30% ISource: U.S Census 1990-2005; ACS, 2005-2014. An 30 to 40% 10.3% 11.4% 10.8% 12 4% 11.3% atypical one-year drop in 2007 has been smoothed here 40 to 50% 4.0% 7.0% 5.6% 7.2% 6.5% L More The decline in rates of homeownership is a 50% than 15 2% 17.4% 20.7% 24 2% 18.0% recent phenomenon. Between 1990 and 2010, Source: Housing Demand Survey, 2016. Base is shelter while the housing stock was growing, payments for owners and renters in Hawaii. homeownership rates also grew (Figure 3). ilk Homeownership rose during the market run-up in the early nineties and fell during the late nineties. The percent of households with an STI ratio of It rose again during the last housing market more than 30 percent is often used as an boom to a high of 60 percent in 2006. indication of housing affordability. There is Homeownership in Hawaii has been falling evidence that Hawai'i's STI ratios are higher than steadily since that time. In 2014, the Census most of the nation. In 2014, the percentage of I reports it at 57.1 percent Statewide. That was mortgage holders whose monthly housing cost just a little higher than the 2000 level. Figure 3 was greater than 30 percent of monthly income shows state and county homeownership rates as was 46.5, the highest in the nation. The they drifted downward from a high in 2005. percentage of renters paying more than 30 percent was 56.8 percent, ranking Hawaii third in the nation after Florida (59 0%) and California d. Shelter Cost& Shelter-to-Income Ratios (57.2%). High-priced housing markets like Hawai'i's often STI ratios usually rise slowly over time and have have high ratios of shelter cost to household changed very little in Hawaii in recent years.6 Iincome. Households with shelter-to-income (STI) STI ratios for rented households are higher than ratios greater than 30 percent are said to be cost are those for homeowners and rise a bit faster burdened, and those with ratios higher than 50 over time. The depressed housing market of the i percent are said to be severely cost burdened. nineties held prices and rents in check while the burgeoning economy raised household incomes. In 2011, about 51 percent of Hawaii residents Housing prices soared between 2003 and 2006 V were paying less than 30 percent of their monthly income for shelter. At that level, 5 ACS 2015, Table DP04, Housing Characteristics. ACS households can use 70 percent of their incomeand HHPS use slightly different calculation methods. 6 See Table A-10 and A-11 in the Appendix for trend data. Hawaii Housing Planning Study,2016 Page 7 ©SMS, Inc. December,2016