2011 Housing Planning Study - State of Hawaii

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percent of their income to housing expenses Unlike the 13 percent of single-family each month. Only 14 to 21 percent of these homebuyers who are fully qualified, 27 percent households, however, have enough money in of prospective condo buyers statewide are fully savings, from the sale of their current home, or qualified. It is interesting to note that Hawaii from other sources to provide a substantial down County, which had the lowest percentage of fully payment. When both of these financial qualified homebuyers (11%) has the largest qualification measures are applied, the percentage of fully qualified condo buyers percentage of households likely to end up with among Hawaii's counties (35%). the keys to a new home falls to between 11 and 18 percent. These results suggest that multi-family ownership units may be an attractive alternative At nearly 18 percent, Kauai has the largest for those households that wish to purchase their percentage of fully qualified buyers. Just over 13 next home but cannot meet the financial percent of potential homebuyers in Honolulu and obligations that accompany a single-family unit. Maui are well qualified. While only 11 percent of When households with a preference for a single prospective homebuyers on the Big Island would family home were asked if they would consider a be fully qualified to buy their next home, nearly condo unit if a single-family unit in their price three-quarters could afford to make the monthly range was not available, three-quarters of payments if they could pull together sufficient prospective home buyers indicated that they funds for the down payment. would consider that option. Nearly all of those households willing to accept a multi-family unit The same set of financial qualification measures were current renters trying to transition to home was applied to potential homebuyers who wish to ownership (95%). purchase a condo unit. Using the current median sales price for condos in each county, Although there is a substantial number of the financial readiness of these households was Hawaii residents fully qualified to purchase their determined. As shown in Table 10a, Hawaii next home, many are not planning to do so in the residents planning to purchase a multi-family near future. About half of the well-qualified rather than a single-family unit are somewhat buyers expect to move sometime in the next more likely to be financially able to do so. couple of years (52%), but more than one- quarter of well-qualified buyers (27%) reported Between 22 percent (Kauai County) and 89 no plans to move for at least 5 years. An percent (Hawaii County) of these households additional 12 percent indicated that it would likely could afford to make the monthly housing be more than 10 years before they began payment on a multi-family ownership unit. seriously to consider a move. Because the median price, and therefore the down payment required, is lower for condominiums, a significantly greater percentage of these households would have enough money for the down payment. Hawaii Housing Planning Study,2011 Page 16 0 SMS, Inc. November,2011