2011 Housing Planning Study - State of Hawaii

Home

may be a more distant reality for many who are or higher than the average rent amount. For 22 currently in a rental unit. percent of prospective multi-family unit renters, it would require less than 30 percent of their household income each month. Households That Plan to Rent Among renters who desire a multi-family unit, Nearly three-quarters of the households planning those in Hawaii County are the most financially to rent their next home cited financial reasons for prepared to do so. The majority of future renters their decision. Their reasons most often include in the City & County of Honolulu, however, do an inability to afford the monthly payment, not earn enough to comfortably make the insufficient down payment, or that purchasing a average rent payment each month. home in Hawaii is just "too expensive'. These households were also asked if they would opt to The remaining 43 percent of households purchase a home now instead of renting if there (27,383) planning to rent their next residence in was a unit available they could afford. Close to Hawaii would prefer a single-family dwelling. As 70 percent responded affirmatively. with all of the groups, those planning to rent a house claimed they could afford higher monthly The financial qualification of Hawaii households rent payments than was suggested by either planning to rent their next home was evaluated their current rent payments or their annual using the current average monthly rent rate for income. While 22 percent reported that a higher single-family homes and multi-family units in the than average monthly payment would be within State of Hawaii and each County. Three their budget, only 18 percent were currently measures, current household income, current making shelter payments at or above that level. monthly shelter payment, and affordable monthly rent amount, were examined to determine the Further, annual household income figures financial fitness of Hawaii's prospective renters. suggested that relatively few of these households (7%) are capable of making the Among the approximately 35,000 households average rent payment for a single family home. across the State that intend to rent an apartment This was especially true for the City and County or other multi-family unit when they move, one- of Honolulu, where less than one percent of quarter indicated that making the average prospective renters looking for a single-family monthly rent payment would not be a problem. dwelling earned enough to make the rent Indeed, one-quarter of these households are payments. currently making monthly rent payments equal to Hawaii Housing Planning Study,2011 Page 18 0 SMS, Inc. November,2011