2006 Housing Policy Study by SMS Research & Marketing Services, Inc.

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SUMMARY: COUNTY OF HAWAII HOUSING CONDITIONS, 2006 The objectives of the Hawaii Housing Policy Study Update (HPS), 2006 were to update the information gathered in previous studies and to continue the development of the Study as a comprehensive housing planning tool. Findings for the County of Hawaii reported here are based on data from many sources, including but not limited to the five components of HPS 2006: the housing stock inventory, the rental price study; the housing production study; the Housing Demand Survey; and (5) the Hawaii Housing Model. In 2006, the housing model was restructured in response to the needs of data users. Interested users should also consult other reports in the series'. FUNDAMENTAL HOUSING DATA Population: Between 1990 and 2000, The County of Hawaii's population grew at a rate of 2.0 percent per year. In the first three years of the present decade, the county growth rate was 2.1 percent per year. Hawaii County was the only one of Hawaii's counties that had higher growth rates in 2000 -2003 than in the nineties. The population growth rate climbed to 2.7 percent per year between 2003 and 2006 — tied with Kauai for highest in the State over the last three years. Housing Stock: The total number of housing units in Hawaii County in 2006 was about 77,500 units. Since 1990, the average annual growth rate for total units has been higher than the population growth rate. Hawaii housing stock grew by 2.5 percent per year between 1990 and 2000. Between 2000 and 2003, the growth rose to 2.6 percent per year and in the last three years, the growth rate soared to 4.3 percent per year, the highest in the State. Households: The number of households, or occupied housing units2, in Hawaii is a better indicator of housing stock available to Hawaii residents. In 2006, 61,213 of the County's 77,577 housing units were owner occupied. Growth rates were lower for occupied units than for total housing stock and that is a reflection of several recent trends including the increased resort construction, increased out -of -state Real Estate purchases, increased numbers of second homes, and the movement of some units from resident to visitor use. Between 1990 and 2006, the housing stock used by Hawaii County households dropped from 86.0 to 78.9 percent. Home Ownership: Housing stock growth from 1990 to 2006 fueled increasing home ownership rates across the State. The percent of occupied units that were owner occupied rose from 61 percent in 1990 to 67 percent in 2006. The growth rate was slow at first, rising three points between 1900 and 2000, one point between 2000 and 2003, and then another point in the last three years. ' See p. iii. 2 Throughout the analysis and reporting of data for HPS 2006 we have followed the U.S. Census convention of defining households and occupied housing units as identical. The number of occupied housing units, or households, is equal to the total housing stock minus units held for use by non - residents and vacant units. Hawaii Housing Policy Study, 2006 Page 1 © SMS, Inc. February, 2007