|
not an effective indicator of the number of housing 2. Demand for Residential Property from
<br /> units needed to satisfy demand or the number of Outside the State
<br /> units that will be built. Table 11 shows the number
<br /> of building permits approved by county planning Most demand for residential real estate in Hawaii
<br /> departments over the last 27 years. originates from residents, but the housing market
<br /> is also affected by demand from outside the State.
<br /> Table 11. Total Building Permits Issued, Counties
<br /> and State of Hawaii, 1990-2017 Perhaps more than any other state, Hawaii has
<br /> qualities that drive external demand for our
<br /> County housing units. We have a temperate climate,
<br /> beautiful beaches, and abundant opportunities for
<br /> Honolulu Hawaii Maui Kauai State outdoor activities and entertainment. Chronic
<br /> 1990 17,123 4,720 3,534 2,312 27,689 health conditions are less prevalent than the
<br /> 1995 11,956 2,707 1,514 1,054 17,231 national average, wages are above average,
<br /> 2000 12,443 3,254 2,294 1,083 19,074 household incomes are higher than in other
<br /> states, and our social welfare programs are at
<br /> 2005 15,174 5,436 2,348 882 23,840 least perceived to be more easily available.
<br /> 2010 14,254 2,756 1,016 171 18,197 Hawai`i's unique and welcoming culture is
<br /> 2015 20,146 5,426 1,280 199 27,051 attractive to many people who wish to have a
<br /> 2017 14,759 2,943 1,348 236 19,286 second home in the islands. All of these make
<br /> Hawaii attractive to buyers from outside the state.
<br /> Source: State of Hawaii Time Series Data Book Table 21.01.
<br /> Figure 4 presents data for the number of Hawaii real estate is also considered to be a good
<br /> approved building permits and the number of investment to out-of-state buyers. Prices are
<br /> added housing units in the County of Hawaii high, but appreciation tends to be high, as well.
<br /> between 2000 and 2016. There is no clear, Average annual prices rise steadily and
<br /> predictive relationship between the two. appreciation has averaged 4.56 percent every
<br /> year since 2000, earning Honolulu one of the
<br /> highest appreciation rankings in the country32.
<br /> Figure 4. Total Building Permits &Added Units, Rents are usually high enough to provide positive
<br /> State and County of Hawaii, 2000-2016 cash flow for most properties, and the possibility
<br /> ResidentlalPermlts-HamaiiCy of making even higher margins by renting to
<br /> Residential Permits-State visitors is available.33
<br /> Units Added-Hawaii Cty
<br /> 10,000 Units Added-State
<br /> a. External Demand and Vacancy Rates
<br /> 3,000
<br /> Until recently, the impact of external demand on
<br /> 6,000 the housing market was largely a matter of
<br /> 000 ` speculation. Since DBEDT's 2016 study of home
<br /> 4
<br /> \, sales trends34, however, we have good data on
<br /> the extent of out-of-state demand in Hawaii.
<br /> 2,6001
<br /> 0
<br /> 101.�o° 50\ryo° °� ff ''~ 1� y ''�1942 no��
<br /> Source: Permits from Census Table 2au: New Privately
<br /> Owned Housing Units Authorized. Added units from ACS
<br /> housing unit data.
<br /> 32 Honolulu Appreciation Trends, Neighborhood Scout, at 34 Hawai'i Department of Business, Economic Development
<br /> https://www.neighborhoodscout.com/hi/honolulu/real- and Tourism. 2016. Residential home sales in Hawai'i:
<br /> estate downloaded June 10, 2019. Trends and characteristics, 2008-2015, May 2016.
<br /> 33 See Section IV-B, Tourism and Housing, p. 70.
<br /> Hawai'i Housing Planning Study,2019 Page 16
<br /> ©SMS December,2019
<br />
|