2016 Hawaii Housing Planning Study

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III IIDBEDT's 2015 study of home sales trends show a. External Demand and Vacancy Rates that more than one-quarter of residential units sold between 2008 and 2015 were purchased by Many units sold to out-of-state buyers were persons or agencies with out-of-state addresses. either second homes or timeshare units. They E The counties have been disproportionally made up the bulk of units in what the Census impacted by out-of-state sales in the last 8 years: calls vacant, held for seasonal, recreational or L 43 percent of Hawaii County's sales were made occasional use. We will call them "seasonal" to non-residents whereas only 15 percent of units. These units are removed from the Honolulu's housing unit sales were made to residential housing stock and are not available to L persons living outside the State. residents in need of a housing unit. Table 12. Out-of-State Sales, 2008 -2015 Figure 5.Vacant Units Held for Seasonal or Total In-State Out of State Occasional Use, by County, 2000-2015 L 16,000 Units Units Pct. Units Pct. y sold N 14 ,000 L A Hawaii 27,041 15,444 57 1% 11,597 42.9% V 12,000 5 Honolulu 88,756 75,202 84 7% 13,554 15.3% o r.,, L . Kauai 7,221 3,956 54 8% 3,265 45.2% D ° 18,000 Maui 21,364 10,325 48 3% 11,039 51.7% g°o $"000 N To State 144,382 104,927 72.7% 39,455 27.3% = N 6,000 L Source: DBEDT 2015 Residential Home Sales in Hawaii:Trends o 4 000 and Characteristics v L xi 2 E 2,000 Most out-of-state buyers (85.4%) were Mainland Z 6 residents. The other 14.6 percent were o international buyers. The purchase prices of 20002002 2004 2006 2008 2010 2012 2014 units bought by international buyers were, on —Hawaii Honolulu -Kauai Maui Laverage, 64.6 percent higher than prices paid by local buyers and 28.3 percent higher than prices Source Census 2000;ACS 1-yr estimates 2005-2006;ACS 3-yr estimates 2007-2008,ACS 5-yr.estimates 2009-2014 of units sold to mainland buyers. Other data L suggest that the larger share of the out-of-state buyers (64%) purchased multi-family units. Hawaii County saw the highest growth rate in seasonal units. Their 11,008 vacant, held for II Though there is variability across sources with occasional use units represent about 13.1 regard to the estimated number of units owned percent of the county's total housing units. by non-residents22, all sources indicate that In all, 6.3 percent of Hawai'i's housing units were II demand from out-of-state owners has always non-primary residences in 2014. By comparison, been significant and contributes to high housing the national average is about 2 percent. These prices in Hawaii. figures suggest that external demand for housing E units by non-residents creates a substantial set 22 of housing units that are not available as part of The HHPS estimate was calculated as the number of the residential housing stock. The loss of those residential properties owned by persons whose tax bills L are mailed to an address outside the state divided by units from the residential stock decreases the the total number of properties in the county tax records elasticity with which supply can accommodate DBEDT's estimate is based on the set of title searches changes In demand. conducted by Title Guarantee of Hawaii between 2008 and 2015. It was calculated as the number of residential properties sold to buyers with a pre-sale address outside of Hawaii, divided by the total number of titles L registered during that period. Hawai'i Housing Planning Study,2016 Page 17 ©SMS, Inc. December,2016