2016 Hawaii Housing Planning Study

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I IP Table 25. FY16 Housing Wage, Hawai`i 2016 The taxonomy classifies all housing units, Hourly wage necessary to occupied and vacant, as affordable or Iafford a 2-bedr000m rental unaffordable to those households within specific as unit at HUD Fair Market HUD household income guidelines. By virtue of Rent, 2016 the HUD guidelines, classified housing units are I I State of Hawaii $ 34 22 affordable and adjusted for household size and Hawaii County $ 22.96 geography. We applied the procedure to Hawaii household prices and rents in Public Use I Honolulu County $ 38.17 Microdata Sample (PUMS) data for 2014, using Kauai County $23.81 guidelines for 30 percent, 50 percent, 80 Maui County $ 24.73 percent, and 100 percent of AMI for each county. I I Source. NLIHC Out Of Reach Report,2016 Results are presented in Table 26. Less than Compare Hawaii's Housing Wage ($34.22) with half of the housing stock statewide (49 8%) was affordable to households earning 80 percent of I the average wage of a renter in the state ($14.53), and it is understandable that there are HUD AMI. Affordable units were most limited in many households with very high shelter-to- Maui County, with just 48.6 percent of the income ratios. Notice, also, the large differences island's housing affordable to low income Ibetween the City and County of Honolulu and households. The housing stock on Kauai the other counties. Finally, the NLIHC measure included the largest percentage of affordable allows us to compare our rent wage with others units (53.3%), and 49.9 percent of units were ,iwacross the nation. Hawaii's 2016 rent wage is affordable in the City and County of Honolulu. is imi the highest among the States and the Honolulu rent wage is the seventh highest among all the The range across the counties, however, was II counties in the nation. less than five percentage points, clearly indicating that about half of all the affordable units in Hawaii are affordable to households with IIb. Affordable units in the current housing incomes below 80 percent of the HUD median. stock Across the state, 21.5 percent of available units For housing planning, we prefer a definition of were affordable to households earning 50 I affordable housing units recently developed by percent of the median AMI. An additional 28.3 the Urban Institute (UI).30 They defined percent of all units were affordable to affordable housing units as units with a monthly households earning between 50 percent and 80 laI i✓ mortgage or rent payment that would require no percent of AMI. Finally, 58.8 percent of the more than 30 percent of the monthly household housing units in Hawaii were affordable to income for a household earning a specified households with incomes at the area median 1 l percent of the HUD Area Median Income (AMI). income. Unlike other measures of affordability, which rp, measure the condition of households or persons in households, UI affordability measures a No affordability as a condition of the housing stock, IIRthe number of existing units with shelter prices Ili affordable to households with varying levels of resources. I! 30 Leopold, Josh, Liza Getsinger, Pamela Blumenthal, Katya Abazajan, and Reed Jordan (2015). The housing affordability gap for extremely low-income renters in i2013, Urban Institute Research Report,June 15,2015. 'ii! Hawaii Housing Planning Study,2016 Page 29 ©SMS, Inc December,2016