2016 Hawaii Housing Planning Study

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I 6 financially prepared to acquire a different following an all-time low of 42 percent in 2011. residence. This is notably higher than in 2011, The shift away from homeownership in 2011 was (30%), 2006 (34%), and 2003 (38%). likely a reaction to the economic climate, I I difficulties obtaining financing, and delays for Differences exist between prospective buyers homeowners who had to a current unit to and renters with regard to their financial purchase a new one. It should be noted that a I I preparedness for a new home. Statewide, only preference for ownership does not always about 7 percent of households that plan to buy a translate into reality in the marketplace. About single-family unit were financially able23 to do so. 15 percent of survey respondents statewide who I I said they planned to purchase their next home Table 16. Qualified Demand for All Unit Types by conceded that they were not sure they would be County, 1992, 1997, 2003, 2006, 2011, and 2016 able to afford it and may have to continue 110 countyrenting. Hawaii Honolulu Maui Kauai State 1992 40.2% 51 7% 38.8% 38.5% 48 4% a. Households Planning to Buy II 1997 34.3% 47.3% 41.4% 34.2% 44.4% 2003 33.8% 38.9% 35.7% 31.4% 37.5% To evaluate financial readiness of households 2006 36.3% 33.2% 39.6% 30.6% 34.2% wishing to buy a housing unit in Hawaii in the lie � 2011 26 0% 31.3% 31.3% 27.3% 30.3% next five years, we examined their income, 2016 36.9% 44.0% 39.7% 35.1% 42.1% affordable monthly housing payment, and total Source: Housing Demand Survey, 1992, 1997, 2003, 2006, amount available for a down payment. These 2011,and 2016 elements were evaluated against a median eP Ills or Less than a fifth (19%) of households who priced home assuming a fixed rate, thirty year wanted a multi-family unit were financially loan, a four percent interest rate, and a twenty N' prepared to pursue their preferred housing. percent down payment. The results are outlined Finally, among households that expect to rent in Tables 17 and 18. As their next residence, 24 percent are financially able to make the median monthly rent payments Statewide, 18 percent of prospective buyer without allotting more than 30 percent of their households planning to purchase a single-family household income to cover that expense. home indicated they could afford to make the monthly mortgage payments. Twenty-six percent Iof these households reported that they had 4. Housing Preferences (Buyers & Renters) sufficient funds to make a twenty percent down payment. When both of these financial As in the past, buyer and renter preferences for qualifications were applied, 7 percent of housing unit characteristics were measured in households would be considered fully qualified.24 2016 The objective was to provide information on preferences to support a broad range of The situation among prospective buyers varies housing issue analyses over the next few years. by county. Prospective buyer households In this section of the report, we will briefly planning to purchase a single-family unit in describe the most salient of those preferences. Hawaii County were more likely to be able to Iafford the monthly payments but not have lir Forty-seven percent of households that planned adequate funds to put toward the down payment. to move said they would buy their next unit. Further, only 13 percent of intended buyers were i!!, Plans for home ownership were on the upswing, fully qualified to purchase their next home. r 23 Have sufficient funds for the down payment AND are able 1 e to make the monthly mortgage payment without allotting 24 Fully qualified households were able to afford the more than 30 percent of their household income to the monthly mortgage payments AND had sufficient funds housing payment. to make the 20 percent down payment. Id Hawaii Housing Planning Study,2016 Page 21 ©SMS, Inc December,2016 II