2019 Hawaii Housing Planning Study

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Table 14. Type and Use of Out-of-State Units 2019 Figure 5. Vacant Units Held for Seasonal or Percent of property owners Occasional Use, by County, 2009-2017 State O`ahu Maui Hawaii Kauai 16,000 Vacation 62 43 77 74 67 Honolulu -Hawai'i Maui Kaua'i home 14,000 Rent unit 39 27 47 53 59 'E 12,000 Investment 38 57 23 26 33 property o Rent unit 61 73 53 47 41 � 10,000 `0 8,000 Source, HHPS Out-of-State Owner Survey, 2019. 6,000 The pattern of owners and renters differs across counties. Oahu out-of-state properties are about 4,000 57 percent investments and 73 percent of those are rented when not occupied by the owner. Forty 2,000 three percent (43%) are vacation homes and only 27 percent of those are ever rented. o 2009 2010 2011 2012 2013 2014 2015 2016 2017 In the other three counties, about a quarter of the Source: ACS 5-yr.estimates 2009-2017. units are investment properties and 50 to 60 Seasonal unit trend lines for Kauai and Maui percent are rentedwhen not in use. Three- Counties have been flat for nine years. The quarters of the units are vacation or second impact of seasonal units in Hawaii county has homes, but about 50 percent of those are rented been decreasing since 2014, and Honolulu at least part of the time. This certainly suggests County's trend has risen sharply since 2013. some additional research. The dates of sale also differ across counties. The major growth in out-of- In all, 6.6 percent of Hawai`i's housing units were state owned units on Oahu began as early as seasonal units in 2017. By comparison, the 1990. Maui's median yearbuilt was 2000, national average is about 2 percent. The figures followed by Kauai and Hawaii County in 2010. indicate that external demand for housing units by The first units reported in the survey were dated non-residents substantially reduces the number before 1920, so the demand for out-of-state of housing units that are part of the housing stock. housing units has always been significant. The loss of those units decreases the housing stock needed to accommodate rising demand. c. External Demand and Vacant Units Identifying exactly how many housing units were Many units sold to out-of-state buyers were either converted from residential owned or rented units second homes or timeshare units. Together they were converted to seasonal units (vacation rental made up the bulk of units the Census calls vacant, units [VRUs]) has been a challenge. In 2019, the held for seasonal, recreational, or occasional use emphasis on this research problem has changed (seasonal). These units are reported separately to focus on the outcome of new regulations on from the residential housing stock and are not short-term rentals on Oahu (see pp.74-75). available to residents in need of a housing unit. In Hawaii County (Figure 4), the 9,708 seasonal 3. Survey Demand Estimates units enumerated in the 2017 ACS were 11.5 One objective of the HHPS is to estimate demand percent of the county's total housing units. For for housing units for the next five years and use Honolulu County, the 14,358 seasonal units were those projections to identify the number and types 4.1 percent of O`ahu`s housing units. Maui of units needed for the State. HHPS includes a County's 6,937 seasonal units were 9.7 percent housing demand survey to support demand of total housing units. On Kauai, 4,301 seasonal estimates and describe new buyers and renters, units were 14.2 percent of all housing units. their financial situations, and unit preferences. Hawai'i Housing Planning Study,2019 Page 18 ©SMS December,2019