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Figure 11: Vacancy Rate and Median Contract Rent, County of Honolulu, 2000-2009 <br /> $1,400 9.0 <br /> $1,200 8.0 <br /> c <br /> 7.0 <br /> CID $1,000 <br /> 6.0 v <br /> M $800 5.0 z <br /> c <br /> o <br /> U $600 4.0 <br /> M m <br /> $400 3.0 > <br /> CID <br /> —Median Contract Rent —Vacancy Rate 2.0 <br /> $200 <br /> 1.0 <br /> $0 0.0 <br /> Y2000Y2001Y2002Y2003Y2004Y2005Y2006Y2007Y2008Y2009 <br /> One reason that rising vacancy rates do not mean relief throughout the market is basic <br /> economics. If a property owner is unable to rent a unit for an amount higher than what is <br /> required to cover his costs (financing, maintenance, etc.), the rent cannot fall to (or, at least, <br /> cannot be maintained at) that lower level even if there is demand. In these cases, the owner <br /> may forego unit maintenance and allow the unit to fall into disrepair and become un-rentable. <br /> What was a vacant unit, therefore, is removed entirely from the housing stock. <br /> Even when there are a substantial number of vacant units, those units may be priced out of <br /> reach of those households who need them. This is clearly indicated by the disparity in the <br /> affordable and average rents detailed in Figure 11. Units may also be vacant as a result of their <br /> location. It is not enough to have vacant units somewhere in the county; they must be located <br /> where people are moving and can make a living. With transportation costs continuing to climb, <br /> having an abundance of vacant rental housing units that are not conveniently located to major <br /> employment centers does not benefit those most in need of housing. <br /> Hawaii Housing Planning Study,2011: Rental Housing Page 15 <br /> 0 SMS, Inc. October,2011 <br />