2016 Hawaii Housing Planning Study

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b. Impact of Out-of-State Sales on Needed Changes in demand are grounded in population Residential Units growth, household formation, changes in the .no number of families, and income distributions. External demand is an important consideration in Most of these items are accessible in published estimating total demand and for planning to data sources. The details of housing demand address the State's housing needs. The fact that require deeper investigation, however, and that 28 percent of all housing units were sold to out- has been the purpose of Housing Demand of-state buyers will surely attract the attention of Surveys since 1992. All of these and other ___ developers and property owners. factors are covered in this section of the report. Building, maintaining, and operating units held 3. Survey Demand Estimates for non-resident use contributes to Hawai`I's economy. It provides jobs and wages, revenue One objective of HHPS is to estimate demand to local businesses, and it contributes to the tax for housing units over the next five to ten years, r� base. However, building units to serve external and to use those forecasts to develop a number demand competes with the development of units and description of needed units for the State. for residential use as it increases the cost of HHPS has always included a housing demand land, labor, and construction materials. The net survey to improve demand estimates and result of the resource absorption by the out-of- provide details on would-be buyers and renters, state housing market is lower availability and their financial situations, and unit preferences. higher costs of housing units for local residents. Data collected in the Housing Demand Survey Vacant units are essential to a viable housing were used to produce demand in three steps, estimating raw, effective, and qualified demand. market as they create "swap space". Swap ..os space allows a household to transition to a new home without requiring another housing unit to a. Raw Demand become vacant at the same time. A market ,.,or without swap space would quickly experience Households were first asked when they would gridlock and cease to function. Every market make their next move to a new housing unit. needs an adequate number of vacant housing Some said they would never move from their units in the residential housing supply. current units. They had found the place they wanted to live in and they would stay there for Housing planners are aware that units designed the rest of their lives. Another group said they to be held for seasonal use have been built and might move, but had no particular plans to go mos will continue to be built in Hawaii at rates higher anywhere very soon. The rest said they would than other states, and that none of these units move and they would move sometime in the next can be expected to serve the housing needs of ten years. This group of households with plans to • o Hawaii's residents. As a result, the significant move in the near future were classified as impact of out-of-state sales must be carefully "movers" and provided our survey estimate of considered in estimating needed housing units, raw demand. By convention, raw demand is both ,.. and in framing housing planning discussions. the number of households that will move and the number of housing units they will need. mom rwr Hawai'i Housing Planning Study,2016 Page 18 ©SMS,Inc. December,2016 mil