HomeMy WebLinkAboutPL-REZ-2022-000033 R. CASSIDAY TESTIMONY 12.15.2022Kona Residential Housing Demand Relative to Roval Vistas Paae 1
Testimony Summary
The subject property is attempting to reduce housing prices, stabilize welfare within our community, provide
shelter for our workforce (fueling our economy), and increase the county and the state's ability to support and
sustain the less fortunate in our community... all by building homes for our middle and middle -lower income
neighbors.
Hawaii has seen a significant increase in families living in poverty, according to an Aloha United Way report
released this month, thanks to the pandemic, and inflation. And the coming recession will make this worse.
15% of Hawaii households were below the federal poverty line in 2022, up from 9% in 2019 (1 in 7 of us).
Another 26%, 1 in 4, are considered ALICE households, or some 634,000 people having tough times.
ALICE — Asset Limited, Income Constrained, Employed. Per the report, "ALICE workers educate our
children, keep us healthy, and make our quality of life possible, yet do not eam enough to support their own
families. ALICE households are forced to make tough choices, such as deciding between quality child care or
paying the rent, which have long-term consequences not only for ALICE, but for all. How many?
39% of the families in North Kona (5,831 households), 48% in South Kona, 33% in South Kohala , or 2,166,
Total Percent ALICE Alice & Below
North Kona 15,073 39% 5,878
South Kohala 6,495 33% 2,143
South Kona 3,609 48% 1,732
Leeward 32,750 32% 10,439
Note this is 2018 data, not 2022 data - it's not yet processed down to the county level. However, the statewide
numbers came in at 15%, 6% points higher than the 9% statewide in 2018
4 years ago, a study was done by the state on housing, describing the effects of high housing costs on families.
It found evidence of doubling up ('more than one family group' in a household) and crowding (2 or more
persons per bedroom). For this area, North Hawaii, showed that
1. 13% of the households in the North Hawaii area had two or more families per dwelling, and that
2. 10% had more than 2 persons per bedroom and that
3. 21 % of all households had to double up or crowd in.
Per the chart, housing supplied since 1960 has fallen significantly. Every time it rises, prices moderate. When
if falls, prices escalate. Today, the average assessed value of a condominium on Leeward Hawaii is $1.6MM.
Falling Supply, Rising Prices, Kona/Kohala MF
2,000 -- $1,600,000
I,800 -- Condo Production $1,440,000
- Ave Assess'd $
$1,280,000
$1,120,000
$860,000
$800,000
$640,000
$480,000
$320,000
$160,000
1,600
1,400
1,200
1,000
800
600
400
200
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Kona Residential Housing Demand Relative to Royal Vistas Page 2
You increase housing supply such as this, and it reduces pressure on prices upwards.
You also allow an investment that provides jobs and higher wages, increases business profits, pays significant
taxes and helps grow our economy. Note the following Economic and Fiscal Benefits accruing to the
community, county and state.
A total investment of $228 million, rounded up, would yield on a one-time basis:
• Increased State economic output of $483 million.
• Increased direct private sector eamings of $277 million.
• Increased construction wages of $103 million.
• Increased profits of $34 million to the private sector.
• Increased state taxes of $27.5 million.
• Increased job creation of 3,516 employees, 1,312 of which would be in construction
• Increased conveyance taxes of $191,700.
In sum, ALICE, like homelessness, is a community problem, one affecting a larger number of us. The solution
to this lack of basic affordable shelter is housing supply. It is a solution benefiting us all, particularly lower
social strife, higher economic activity and lower housing costs. By allowing workforce housing, you Help
ALICE, help those in poverty, help the homeless.
By Ricky Cassiday
rcassidav@me.com Dec 2022