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

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Figure 3. Hawaii Households at HUD Guideline Levels, 2006 25% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .................... . 20% 15% 10% 5% 0% less than 30 b 50% 51 b 80% 81 b 120% 121 b 141 b more than 30% 140% 180% 180% The distribution of households at HUD guidelines across the counties is nearly identical because the guidelines are based on the median household income for each county. The distributions also differ very little across time. The guidelines are particularly useful since they describe the types of housing suited to each income level. Households with incomes below 30 percent of the median income are very likely to require assisted housing of some sort. Those between 30 and 50 percent of the median are unlikely to qualify for financing to buy units. Those between 50 and 80 percent of median income may have difficulty qualifying for conventional financing. The ability of those from the 80 to 120 percent group to secure housing depends on the market. With Hawaii's very high housing costs, they will have difficulty finding the housing they might want to have this year. Households with incomes between 120 and 140 percent of median income will need affordable housing units. Those with incomes between 140 and 180 percent of median will do well in the lower half of the market, and those above 180 percent of median are expected to be able to secure housing without difficulty. The more important question is how Hawaii's households are doing in the current boom housing market. Between 2003 and 2006 both purchase price for housing and rent costs soared. During the first half of that period, availability was very low. By the time the Housing Policy Demand Survey was conducted, availability was somewhat better, but costs were at all -time highs. We might expect that the shelter -to- income ratio increased as a result. Hawaii Housing Policy Study, 2006 Page 17 © SMS, Inc. February, 2007