2016 Hawaii Housing Planning Study

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I Ib. Households Planning equalhigher Rent to or hi her than the median rent amount. For 24 percent of prospective multi-family unit I Over three-quarters of the households planning renters, it would require less than 30 percent of to rent their next home cited financial reasons for their household income each month. their decision, including inability to afford a down I payment or monthly payment and that Just over one-fifth of prospective renters in purchasing a home in Hawai'i is just "too Hawaii County who desire to rent a multi-family expensive". These households were also asked unit earn enough to make the median monthly I if they would opt to purchase a home now rent payment comfortably. instead of renting if there was a unit available they could afford. Over 75 percent responded The remaining 46 percent of households I affirmatively. (21,282) planning to rent their next residence in Hawai'I would prefer a single-family dwelling. The financial qualification of Hawaii households Statewide, a greater number of those planning to Iplanning to rent their next home was evaluated rent a house indicated they could afford higher using the current average monthly rent rate for monthly rent payments than was supported by single family homes and multi-family units in the either their current rent payments or their annual State of Hawai'i and each county. Household income. I income, current monthly shelter payment, and affordable monthly rent amount were examined Thirty-seven percent reported that the median to determine the financial readiness of Hawaii's monthly rent payment or higher would be within I prospective renters. their budget. Only 28 percent were currently making shelter payments at or above that level. Among the approximately 50,000 households Further, annual household income figures I across the State that intend to rent their next suggested that less than one-quarter (24%) are home, 54 percent plan to rent an apartment or capable of making the median rent payment for a other multi-family unit. Among these households, single-family home without spending more than I 29 percent indicated that making the average 30 percent of their monthly household income for monthly rent payment would not be a problem. shelter. In addition, over 30 percent of these households I are currently making monthly rent payments Table 19. Financial Qualification to Rent a Multi-Family Unit, Counties and State of Hawaii, 2016 IHonolulu Maui Hawaii Kauai State Median Monthly Rent Amount $2,279 $1,922 $1,718 $1,877 $1,574 Security Deposit + 1st Mo. Rent $4,558 $3,844 $3,436 $3,754 $3,148 ITotal Effective Demand Renters 23,568 2,516 2,016 717 28,818 Affordable Rent Same or Higher 11 5% 16.8% 15.1% 14.8% 28.9% Current Rent Same or Higher 13 4% 19.3% 13.1% 12.9% 30.6% I Income-Based Qualification 10.5% 7 1% 21.2% 24.6% 24.4% Source: Median rents from RentRange®(Feb 2016)for all unit sizes. Qualified renters from HHPS 2016. Base is households that plan to rent their next MFD unit in the State of Hawaii. I *Self-reported affordable rent amount. I IIHawai'i Housing Planning Study,2016 Page age 2 3 ©SMS, Inc. December,2016