2019 Hawaii Housing Planning Study

Home

Table 12. Out-of-State Sales, 2008 -2018 Table 13. Out-of-State Sales by County, 2018 Sales Percent Percent Percent I Sales Price In-State Out-of-State Buyers Out-of- 35 2008 13,616 72.4% 27.6% State Differential 2009 11,426 70.6% 29.4% State 20,409 23.9% 44.6% 2010 14,069 66.5% 33.5% Honolulu 12,993 14.9% 46.6% Hawaii 3,412 41.3% 87.8% 2011 11,889 69.6% 30.4% 2012 12.017 74.1% 25.9% Kauai 1,176 40.2% 62.8% 2013 13,378 75.0% 25.0% Maui i 2,828 37.5% 65.8% Source: DBEDT Data Book 2018,Table 21.39. 2014 13,455 76.0% 24.0% 2015 15,077 77.9% 22.1% Overall, the impact of external demand for Hawaii 2016 15,311 77.2% 22.8% housing units will have a notable impact on the 2017 15,835 77.3% 22.7% efforts of housing planners. We will return to this 2018 15,525 76.1% 23.9% _ topic in later sections of the report. Source: DBEDT Data Book 2018,Table 21.38. b. Use of Hawaii Property For the last ten years, nearly a quarter of all residential home sales in Hawaii were to persons In a 2019 survey, we contacted Hawaii property who live outside the state. That rose as high as owners who had tax billing addresses outside the 33.5 percent in 2010 and has been drifting State. Among those property owners, 38 percent downwards to about 24 percent in 2018. saw their property largely as an investment and 62 percent considered their property to be a Most (85%) of the out-of-state buyers were vacation home for the use of their family and Mainland residents. The other 15 percent were friends.36 international buyers. About 48 percent of out-of-state owners rented The counties were disproportionally impacted by their units while they were not using them. out-of-state sales in the last nine years. In 2018, Another 52 percent left their units vacant or 15 percent of Honolulu sales were made to non- loaned them to family or friends. There was a residents and 37.5 percent of Maui County's strong correlation between the way owners housing unit sales were made to persons living perceived their properties and the way they used outside the State. Hawaii and Kauai Counties them (Table 14). For instance, 61 percent of the also saw approximately 40 percent of their home investors rented their property while they were not sales go to outside buyers. using it themselves. Among those who see their property as a vacation or second home, and 39 In the same year, purchase prices for units bought percent of vacation homeowners rented their units by out-of-state buyers were, on average, 44.6 at least part of the time. percent higher than prices paid by local buyers. On Oahu, out-of-state buyers bought units that were 46.6 percent higher than the average units sold to a resident. The price differential peaked in Hawaii County, where non-Hawaii buyers paid 88 percent more for their units than did County residents. 36 The differential between in-state and out-of-state average 36 About 75 percent were from other U.S. states and 25 sales prices. For example, the average sales price for percent were from foreign countries. For methodology out-of-state units was 49.2 percent higher than the and content see SMS, Hawai'i Housing Planning Study, average sale price for sales to in-state residents. 2019:Technical Report, p.6. Hawai'i Housing Planning Study,2019 Page 17 ©SMS December,2019