2019 Hawaii Housing Planning Study

Home

Figure 2. Homeownership Rates, State and households (11.3%) devoted 30 to 39 percent of County of Hawaii, 2000-2017 their income to shelter payments, leaving the remaining one-quarter of households spending 40 70% percent or more of their income on housing. 68% "' 66% In 2019, 17.3 percent of households had no 64% shelter payment and 43.2 percent had a shelter- to-income ratio of less than 30 percent. The rest 62% were spending more than 30 percent of their Zu 60% income on shelter and were, therefore, shelter 58, burdened. One in ten households statewide devotes 30 to 40 percent of their income to shelter 56% costs. For nearly one-quarter of households 54% statewide (23.1%), shelter payments take up -County of Hawaii -State of Hawai'i 52% more than 40 percent of their income each month. 50% o Nm co m Li, VD N. o N Li, VD N. Table 3. Shelter-to-Income Ratio by County, 2019 a a a a a a a a a a a a a a a a a a a a a a a a a a N N N N N N N N N N N N N N N N N N Monthly Shelter Payment as a Percent of Monthly Source: U.S. Census 2000; 2001-2006 calculated; ACS 2007-2008 3-year estimates; ACS 2009-2017 5-year Household Income estimates. An atypical one-year drop in 2007 has been No Under smoothed here. Shelter 30 30to40 Over40 Not enough Payment percent percent percent information Homeownership rose again during the last Honolulu 17.0% 44.1% 9.7% 23.1% 6.1% housing market boom to a high of 60 percent in Maui 14.5% 43.3% 10.5% 23.8% 7.8% 2006. Homeownership in Hawaii then fell steadily Hawaii 21.1% 41.0% 8.8% 21.8% 7.3% to its low of 56.9 percent in 2015. Since then, Kaua'i 17.2% 38.3% 10.5% 24.5% 9.4% however, homeownership for the state and its State 17.3% 43.2% 9.7% 23.1% 6.7% counties appears to be trending upward. Figure Source: Housing Demand Survey,2019. Base is owners and 2 shows state and county homeownership rates renters in Hawaii. as they drifted downward from the peak of the bubble through 2015, then began to climb The shelter-to-income data show different levels between 2015 and 2017. The 2017 statewide of housing affordability across counties (Table 3). homeownership rate was 58.1 percent. The City & County of Honolulu and Maui County had the largest percentage of households with STI ratios of less than 30 percent (44.1% and d. Shelter Cost & Shelter-to-Income Ratios 43.3%, respectively). That was an approximately 20 percent increase over 2016 for these two High-priced housing markets like Hawai`i's often counties. Kauai County had the largest have high ratios of shelter cost to household percentage of households paying more than 40 income. Households with shelter-to-income (STI) percent of their income for shelter (24.5%), ratios greater than 30 percent are said to be cost- followed by Hawaii County with 21.8 percent. burdened, and those with ratios higher than 50 percent are said to be severely cost-burdened. The percent of households with an STI ratio of more than 30 percent is often used as an In 2011, about 51 percent of Hawaii residents indication of housing affordability. There is were paying less than 30 percent of their monthly evidence that Hawai`i's STI ratios are higher than income for shelter. most of the nation. In 2019, the percentage of mortgage holders whose monthly housing cost In 2016, the proportion of Hawaii households was greater than 30 percent of monthly income paying less than 30 percent of household income was 40.3 percent, the highest in the nation.3 The for shelter (rent or mortgage plus utilities) was up percentage of renters paying more than 30 to 58.2 percent.2 Roughly eleven percent of percent was 55.6 percent, ranking Hawaii third in 2 HHPS 2016. 3 ACS, Table DP04 2017 5-year estimates. Hawai'i Housing Planning Study,2019 Page 6 ©SMS December,2019