2011 Housing Planning Study - State of Hawaii

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Figure 6: State and Counties of Hawaii, was also higher — almost seven percentage Homeownership Rates, 1990-2010 points higher. 70i _ state Honolulu Table 5: Shelter-to-Income Ratio by County, 2011 Hawaii Maui star Kauai payment as City& County County 65% % of HH State of Countyol of County of income Hawaii Honolulu Hawaii of Maui Kauai 60% Less than 30 51.4% 54.1% 49.1% 40.8% 46.0% � 30 to 40 10.4% 82% 12.5% 18.0% 17.3% Over 40 27.7% 1 28.0% 1 25.1% 130.2% 1 24.2% Source: Housing Demand Survey, 2011. Households with 55% I no shelter payment and those that did not provide sufficient information to calculate a shelter-to-income ratio are not included. See Table A-9 in the appendix. 50% 1990 1992 1997 1999 2000 2003 2006 2010 The market has affected the ratio over time. The percent of households paying more than 40 Sources: U.S. Decennial Census 1990 and 2000, HHPS percent of their income for shelter held steady Housing Demand Survey 1992, 1997, 2003, 2006, and around 18 percent between 1992 and 2003. The 2010, SrsS estimate 1999. depressed housing market of the nineties held prices and rents in check while the emerging Shelter Cost & Shelter-to-Income Ratios economy raised household incomes. Between 2003 and 2006, however, rapidly rising housing In 2011, about 51 percent of Hawaii residents costs pushed the shelter-to-income ratio to new were paying less than 30 percent of their highs. This year, the situation is even more monthly income for shelter (Table 5). That level difficult for Hawaii residents. is considered to be an appropriate shelter to income ratio for most homeowners. Loan The shelter-to-income picture was very similar applicants whose mortgage payments are no across counties. High housing costs, particularly more than 30 percent of their monthly income in the City and County of Honolulu and Maui will have sufficient cash to support their families County, have had a negative impact on those and make loan payments on time. residents. About 30 percent of households must dedicate more than 40 percent of their income About 14 percent of all households paid between each month to shelter payments. 30 and 40 percent of their income for shelter and close to 40 percent of households across the Crowding and Doubling Up State paid more than 40 percent of their monthly income for shelter. Having relatively high Statewide, 21 percent of our households were percentages of owners with high shelter-to- crowded by the census definition, and fully 30 income ratios is not unusual in high-priced percent were either doubled up or crowded. housing markets. The shelter-to-income ratios have changed In 1997, the recession was ending and the somewhat from 2006. The 2011 figures showed situation was better. By 2003 and the beginning that about three percent fewer households were of a new period of construction, crowding and below the 30 percent mark. However, the doubling up were still lower. Congestion in our percentage of families with shelter payments households reached its lowest point in 2006, just higher than 40 percent of their monthly income at the peak of the boom. This year crowding and doubling-up increased significantly. Hawaii Housing Planning Study,2011 Page 11 ©SMS, Inc. November,2011