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

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Home Ownership The growth in housing stock between 1990 and 2006 was accompanied by a steady increase in homeownership rates across the State. As shown in Table 4, the percent of occupied units that were owner occupied rose from 54 percent in 1990 to nearly 61 percent in 2006. The growth rate was slow at first, rising two points between 1990 and 2000, one point between 2000 and 2003, and then three points in the last three years. Table 4. Home Ownership Rates, 1990 -2006 Source: 1990 and 2000, U.S. Census; Honolulu 2003, 2004, American Community Survey; Honolulu, Hawaii, Maui Counties from American Community Survey, 2005; all other estimated by SMS. Homeownership rates for the City and County of Honolulu have traditionally been somewhat lower than for the other three counties. And while homeownership is higher today on all islands, Honolulu's rate is still the lowest in the State. The surprising finding was that Maui's homeownership rate was stable during the nineties. Even with a growth spurt in the last three years, homeownership is closer to Honolulu's rate than to those of Hawaii and Kauai Counties. Out of State Ownership Out -of -state demand for Hawaii housing units has been a substantial feature of the housing market for many years. In the last six years, as major West Coast real estate prices surpassed those in Hawaii, out -of -state demand increased dramatically and helped to push Hawaii home prices to record highs. Table 5 presents figures for all four counties in 2006. Table 5. Out -of -State Owners, 2006 State of Hawaii County of Honolulu County of Hawaii County of Maui County of Kauai 1990 53.9 52.6 61.1 57.5 58.6 1992 54.5 52.7 61.4 57.4 59.7 1997 56.1 54.2 63.8 57.4 61.2 1999 56.4 54.5 64.2 57.4 61.3 2000 56.5 54.6 64.5 57.4 61.4 2003 57.2 54.9 66.1 58.3 62.0 2004 59.0 57.2 66.9 58.5 62.9 2005 59.4 57.6 67.2 58.6 64.0 2006 1 60.7 58.9 1 67.2 1 61.4 1 65.2 Source: 1990 and 2000, U.S. Census; Honolulu 2003, 2004, American Community Survey; Honolulu, Hawaii, Maui Counties from American Community Survey, 2005; all other estimated by SMS. Homeownership rates for the City and County of Honolulu have traditionally been somewhat lower than for the other three counties. And while homeownership is higher today on all islands, Honolulu's rate is still the lowest in the State. The surprising finding was that Maui's homeownership rate was stable during the nineties. Even with a growth spurt in the last three years, homeownership is closer to Honolulu's rate than to those of Hawaii and Kauai Counties. Out of State Ownership Out -of -state demand for Hawaii housing units has been a substantial feature of the housing market for many years. In the last six years, as major West Coast real estate prices surpassed those in Hawaii, out -of -state demand increased dramatically and helped to push Hawaii home prices to record highs. Table 5 presents figures for all four counties in 2006. Table 5. Out -of -State Owners, 2006 Out -of -State owners calculated as percent of all units for which the tax bill is mailed to an out -of -state address. Source: Hawaii Tax Map Key records, tabulated by Hawaii Information Services for SMS. Hawaii Housing Policy Study, 2006 Page 11 © SMS, Inc. February, 2007 State of Hawaii County of Honolulu County of Hawaii County of Maui County of Kauai Single family homes 6.2 3.6 9.9 9.5 11.0 Condominium units 12.7 7.8 16.0 26.7 20.3 Out -of -State owners calculated as percent of all units for which the tax bill is mailed to an out -of -state address. Source: Hawaii Tax Map Key records, tabulated by Hawaii Information Services for SMS. Hawaii Housing Policy Study, 2006 Page 11 © SMS, Inc. February, 2007