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The same set of financial qualification measures half times the percentage of households fully
<br /> was applied to potential homebuyers who sought qualified to purchase a single-family home.
<br /> to purchase a multi-family unit rather than a
<br /> single-family home. Using the current median This analysis does not consider the impact of
<br /> sales price for condominiums in each county, the maintenance fees attached to many multifamily
<br /> financial readiness of these households was units. Maintenance and other fees can add as
<br /> determined. As shown in Table 18, Hawaii much as $100 to $200 to monthly shelter
<br /> residents planning to purchase a multi-family payments, seriously reducing the number of
<br /> rather than a single-family unit are somewhat households who might qualify for purchase.
<br /> more likely to be financially able to do so. 11
<br /> Because
<br /> the results suggest that multi-
<br /> Because the median price, and therefore the family ownership units may be an attractive
<br /> monthly mortgage and down payment required, alternative for those households that wish to
<br /> is lower for multi-family units, a significantly purchase their next home but cannot meet the
<br /> greater percentage of Hawaii households would financial obligations that accompany a single-
<br /> be able to make the monthly payments for a family unit. When households with a preference t,
<br /> condominium than for a single-family unit. For for a single family home were asked if they
<br /> the State, 48 percent of potential multi-family would consider a multi-family unit if a single-
<br /> home buyers could afford to make the monthly family unit in their price range was not available,
<br /> housing payment. Twenty-seven percent of more than half (54%) of prospective home
<br /> these households have enough money for the buyers indicated that they would consider that
<br /> down payment. After both criteria are applied, option. Those households willing to accept a
<br /> 19 percent of households across the State multi-family unit were almost equally divided
<br /> planning to purchase a multi-family unit would be between current homeowners (47%) and current Nub
<br /> fully qualified to do so. This is roughly one-and-a renters trying to transition to home ownership
<br /> (53%). ,I
<br /> Table 17. Financial Qualification to Purchase a Single Family Home, Counties & State, 2016
<br /> Honolulu Maui Hawai'i Kaua'i State 11Median Sales Price $760,000 $607,000 $363,000 $581,000 $623,000
<br /> Down Payment Required $152,000 $121,400 $72,600 $116,200 $124,600
<br /> Monthly Mortgage Payment $3,628 $2,898 $1,733 $2,774 $2,974
<br /> Total Effective Demand Buyers 23,116 5,009 6,084 1,679 35,888
<br /> Can Afford Monthly Payment 11.5% 25.9% 34.4% 10.6% 17.8%
<br /> Have Adequate Down Payment 26.5% 23 3% 24.3% 18.6% 25.9% �'
<br /> Fully Qualified 4.5% 9.3% 12.7% 13.1% 7.1%
<br /> Source. Median prices from Honolulu Board of Realtors(June 2016)and Zillow(May 2016). Housing
<br /> Demand Survey,2016 Base is effective demand households that plan to purchase a SFD unit.
<br /> Table 18. Financial Qualification to Purchase a Multi-Family Unit, Counties& State of Hawai`i, 2016 „
<br /> Honolulu Maui Hawai'i Kaua'i State
<br /> Median Sales Price $405,000 $370,000 $330,000 $377,000 $386,000
<br /> Down Payment Required $81,000 $74,000 $66,000 $75,400 $77,200
<br /> Monthly Mortgage Payment $1,934 $1,766 $1,576 $1,799 $1,843
<br /> Total Effective Demand Buyers 10,473 664 391 80 11,608
<br /> Can Afford Monthly Payment 49.3% 50.9% 70.1% 70.0% 48.2%
<br /> Have Adequate Down Payment 29.2% 23.0% 9.2% 76 3% 27.1%
<br /> Fully Qualified 18.7% 20.9% 9.2% 56.3% 18.9% 11Source. Median prices from Honolulu Board of Realtors(June 2016)and Zillow(May 2016). Housing
<br /> Demand Survey,2016. Base is effective demand households that plan to purchase a MFD unit.
<br /> Hawaii Housing Planning Study,2016 Page 22
<br /> ©SMS,Inc. December,2016
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