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MEASURING RENTAL DATA <br /> In the past several years, SMS has become increasingly attentive to the growing number of <br /> rental advertisements placed online that were not also published in print media. Because the <br /> data for the Rental Housing portion of the HHPS has been based solely on newspaper <br /> advertisements, we have been concerned that this method of data collection would, at some <br /> point, become untenable. The merger of the Honolulu Advertiser and Star-Bulletin in June 2010 <br /> further complicated the rental housing picture by significantly diminishing the number of rental <br /> advertisements available for analysis. <br /> After extensive analysis of multiple sources of data on Hawaii's rental housing market, SMS <br /> has determined that the method of data collection employed for all prior Housing Policy Studies <br /> no longer provides an accurate representation of the rental housing market3. The 2011 Rental <br /> Housing Report, therefore, incorporates data from all available sources in order to provide the <br /> most complete representation of the market. Going forward, SMS will rely on data from the U.S. <br /> Census Bureau's Decennial Census, annual American Community Survey (ACS), and American <br /> Housing Survey (AHS) to track rental market fluctuations within the State and Counties. Data <br /> collected from newspaper and online rental advertisements will continue to be a useful tool in <br /> examining the rental market for smaller geographic areas within each County. <br /> In addition to the benefits of continuity and comparability with other housing market studies, the <br /> revised rental data collection and analysis processes will likely decrease the amount of time and <br /> expense involved in this component of the HHPS because the data will be readily available and <br /> updated annually. The present study lays the foundation for developing a comprehensive set of <br /> time series data that will provide accurate data on past rental housing market performance, <br /> enhance understanding of current rental conditions, and support forecasts of future rental <br /> housing needs. <br /> CHANGES TO METHOD OF RENTAL DATA COLLECTION <br /> There has been a change in technology that affects the way in which we measure, and track <br /> rents for this report. There has also been a change in consumer and producer behavior which <br /> will affect how things are done in the rental market. In turn, these changes will have a notable <br /> impact on the way housing planners and advocates for affordable housing approach their work <br /> in the future. <br /> A simple change in the way available rental units are marketed to potential tenants in the State <br /> of Hawaii, moving from newspaper to online advertisements, has necessitated a change in the <br /> way rental data will be collected going forward. The figures and discussion below illustrate the <br /> reason for this methodological change. <br /> For most Hawaii counties, the number of rental advertisements included in calculations of the <br /> average asking rent has been steadily declining since mid-2008. Between 2009 and 2010, <br /> however, the ad counts drop dramatically (see Figure A-4). <br /> 3 Refer to pages 26-32 for additional detailed information <br /> Hawaii Housing Planning Study,2011: Rental Housing Page 26 <br /> 0 SMS, Inc. October,2011 <br />