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

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Overall, persons from outside of the State own 6.2 percent of Hawaii single - family housing units and 13 percent of our condominium units. In all but the City and County of Honolulu, the out -of- state figure for single - family units is about 10 percent. For Maui and Kauai counties, the percent of out -of -state condominium ownership is more than 20 percent. HOUSING PRICES Most Hawaii housing observers are aware that housing prices, whether sale or rents, have been rising sharply over the last three years. Housing prices are at historical highs. Availability was low in 2003 and for many months in 2004. By 2005 -2006, for -sale units began to appear on the market in larger numbers, but rentals continued to be in short supply. By 2006, rental units were available in numbers similar to 2002 -2003. Before we turn to the details of housing prices for all the islands, it will be useful to look at the impact of housing prices over the long haul. Figure 1 presents representative9 data for housing prices and rents in current dollars and in 1982 -84 dollars adjusted for inflation. The rent data are average monthly advertised rents for 2- bedroom single - family homes on Oahu. The home sales data are average annual sales prices for 2- bedroom homes on Oahu. Figure 1. Housing Prices and Rents in Hawaii, 1990 to 2006 Source: SMS Rental data. MLS sales data. 9 Some data are available for other islands and for other unit types, but the series are of differing lengths and for differing unit types. No reliable data are available for the State as a whole for such a long series. Most available data suggest that the behavior of these series — as distinct from the actual rent or sale amounts — are roughly the same for all counties. Hawaii Housing Policy Study, 2006 Page 12 © SMS, Inc. February, 2007 $3,000 $700,000 $2,500 $600,000 c $500,000 L 21 $2,000- CL t $400,000 E $1,500 N $300,000 a� d $1,000 � d >M o O a O 0 O O a $200,000 $500 $100,000 $0 $0 g` �4` 0`� �C§l rent adj. rent sales adj. sales Source: SMS Rental data. MLS sales data. 9 Some data are available for other islands and for other unit types, but the series are of differing lengths and for differing unit types. No reliable data are available for the State as a whole for such a long series. Most available data suggest that the behavior of these series — as distinct from the actual rent or sale amounts — are roughly the same for all counties. Hawaii Housing Policy Study, 2006 Page 12 © SMS, Inc. February, 2007