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2011 Housing Planning Study - Rental Report
ence.Beyond Information. Intelligence. 5 Established 1960 Database Marketing Economic&Social Impact Studies Evaluations Research Modeling/Forecasting HAWAVI HOUSING • 1 HOUSING RENTAL • SMS Prepared for the: 1042 Fort Street Mall Suite 200 Hawaii Housing Finance and Development Honolulu, HI Corporation and Housing Officers/Administrators Ph:(808)537-3356-3356 P 9 Toll Free(877)535-5767 for Honolulu, Maui, Hawaii, and Kauai Counties Fax:(808)537-2686 E-mail:info @smshawaii.com Website: www.smshawaii.com SMS Affiliations and Associations: Experian International Survey Research Solutions Pacific,LLC Prepared by SMS Research & Marketing Services, Inc. SMS Consulting, LLC October, 2011 3i Marketing&Communications Beyond Infonnation. Intelligence. Established 1960 Database Marketing October 19, 2011 Economic&Social Impact Studies Evaluations Ms. Janice Takahashi Research Chief Planner Hawai'i Housing Finance and Development Corporation Modeling/Forecasting 677 Queen Street, Suite 300 Honolulu, Hawaii 96813 sMS Aloha! 1042 Fort Street Mall Suite 200 Honolulu, HI 96813 Here is the report on the Rental Housing portion of the Hawai'i Ph:(808)537-3356 Housing Planning Study (HHPS) 2011. It covers the information Toll Free(877) 67 Fax:(808)537-2686 2686 prior rior HPS and the newest data we have on rents. E-mail: info@smsHawai'i.com Website: www.smsHawai'i.com The data are changing just as with the Inventory Data. We will be incorporating new rent data and evaluating the utility of previous and current Rental Housing Study methods in the age of Twitter and Craig's List. Since 2006, more rental units are advertised online than in print media. The merger of our two newspapers in June 2010 further complicated the picture and diminished the number of rental advertisements available for analysis. HIS has started collecting Web data on Hawaii rents. To support the transition, we are turning to data provided by the Census 2010, the American Community Surveys (ACS), and HUD's Fair Market Rents. When the new demand survey is finished, we will incorporate those data as well. We trust that rent data in this report will be informative and useful. Please call if you have any questions or comments. Sincerely, SMS Affiliations and Associations: Experian International Survey Research Solutions Pacific, LLC James E. Dannemiller SMS Consulting, LLC 31 Marketing&Communications Executive Vice President CONTENTS EXECUTIVE SUMMARY..............................................................................................................1 HAWAII RENTS, 2000 TO 2011 .................................................................................................2 CONTRACT RENTS .................................................................................................................2 ASKINGRENTS........................................................................................................................5 FAIR MARKET RENTS .............................................................................................................8 RENTAL VACANCY RATES................................................................................................... 13 APPENDIX..................................................................................................................................16 MEASURING RENTAL DATA ...................................................................................................26 CHANGES TO METHOD OF RENTAL DATA COLLECTION ................................................26 COMPARING RENT DATA SOURCES ..................................................................................29 Hawaii Housing Planning Study,2011: Rental Housing Page i ©SMS, Inc. October,2011 LIST OF TABLES Table 1: Median Contract Rent for the Counties and State of Hawaii, 2005-2011 .....................3 Table 2. Average Asking Rent, Counties and State of Hawaii, 2003-2011.................................5 Table 3. Average Asking Rent, Counties and State of Hawaii, 2003-2011.................................6 Table 4. Average Asking Rent for Single Family Homes and Apartments, Counties and State of Hawaii, 2003-2011................................................................................................................7 Table 5. Fair Market Rent, City & County of Honolulu, 2000-2011 ..............................................9 Table 6. Fair Market Rent, County of Hawai i, 2000-2011.........................................................10 Table 7. Fair Market Rent, County of Maui, 2000-2011 .............................................................11 Table 8. Fair Market Rent, County of Kauai, 2000-2011 ...........................................................12 Table 9. Rental Vacancy Rates, 1986-2010..............................................................................14 Table A-1. Average Asking Rents for Apartments by Size, State of Hawaii, 2003-2011 ..........17 Table A-2. Average Asking Rents for Apartments by Size, Counties of Hawaii, 2003-2011 ....19 Table A-3. Average Asking Rents for Houses by Size, Counties of Hawaii, 2003-2011 ..........21 Table A-4. Average Asking Rent, Districts and Counties, 2010.................................................22 Table A-5. Affordably Housing Data, State and Counties of Hawaii, 2011 ...............................23 Table A-5a. Affordably Housing Data, State and Counties of Hawai i, 2011 (continued)..........24 Table A-6. Number of Rental Advertisements Collected Annually, 2003-2010 .........................28 Table A-7. Average Asking, Median Contract and Fair Market Rents, Counties of Hawaii, 2000-2011............................................................................................................................31 Table A-8. Average Rent Rates for Newspaper and Online Ads, State of Hawaii, 2010..........32 Hawaii Housing Planning Study,2011: Rental Housing Page ii 0 SMS, Inc. October,2011 LIST OF FIGURES Figure 1: Median Contract Rent, Counties and State of Hawaii, 2005-2011 ..............................2 Figure 2: Consumer Price Index-All Urban Customers, Housing, State of Hawai i, 2000-2010..4 Figure 3: Average Asking Rent by County, 2003-2011................................................................6 Figure 4: Average Asking Rent for Apartments by County, 2003-2011 .......................................7 Figure 5: Average Asking Rent for Single Family Homes by County, 2003-2011 .......................8 Figure 6: Fair Market Rent, City & County of Honolulu, 2000-2011.............................................9 Figure 7: Fair Market Rent, County of Hawaii, 2000-2011 .......................................................10 Figure 8: Fair Market Rent, County of Maui, 2000-2011............................................................11 Figure 9: Fair Market Rent, County of Kauai, 2000-2011 .........................................................12 Figure 10. Rental Vacancy Rates, 1986-2010...........................................................................13 Figure 11: Vacancy Rate and Median Contract Rent, County of Honolulu, 2000-2009.............15 Figure A-1: Average Asking Rent for Apartments, State of Hawaii, 2003-2011 .......................17 Figure A-2. Average Asking Rent for Apartments by County, 2003-2011 .................................18 Figure A-3. Average Asking Rent for Houses by County, 2003-2011........................................20 Figure A-4: Number Rental Advertisements Collected, City & County of Honolulu, 2003-2010 27 Figure A-5: Number of Rental Advertisements Collected Quarterly, 2010 ................................29 Figure A-6: Average Asking, Median Contract and Fair Market Rents, 2000-2011 ...................30 Figure A-7: Average Rent Rates for Newspaper and Online Ads, State of Hawaii, 2010 ........32 Hawaii Housing Planning Study,2011: Rental Housing Page iii 0 SMS, Inc. October,2011 EXECUTIVE SUMMARY With 42 percent of households in the State of Hawaii renting their current residence, the Rental Housing Study is a fundamental component of the Hawai'i Housing Planning Study (HHPS) 2011. Understanding the number and types of housing units available for rent, as well as the vacancy rates, demand, and monthly rent rates for those units, is a necessary part of forecasting the housing needs of Hawaii residents. The Rental Housing Study 2011 shows that Hawaii asking rents were on the rise from 2003 through 2006 and fell notably from 2007 to 2010, with the exception of a slight reversal in the last half of 2010 and first half of 2011. Data for the first half of 2011 indicates that asking rents are on the rise for the State and each County except Hawaii County. Contract rents throughout the State rose between 2003 and 2009, with a slight decrease in the rate of growth for 2009. In keeping with the findings for asking rents, data for 2011 suggests that renters have begun paying more for their homes in recent months as contract rents are higher across all Counties. Fair Market Rents in all of Hawaii's counties have remained steady or increased every year since 2000, but levels doff notably after 2009. Overall, the rental data for 2011 suggest that rents across Hawai'i are at the beginning of an upward trend. Households in the City & County of Honolulu, 42 percent of whom are renters, consistently have the highest median contract rent and tend to drive the overall median for the State. Renters in the County of Maui represent 44 percent of households and pay the second highest amount to cover their monthly housing expenses. Residents of Kauai who are renting their current home have experienced more significant increases in their contract rents over the past couple of years than residents of any other county (13 percent from 2008 to 2009). Increases in contract rents among the other counties in Hawaii during that same period were 5 percent or less. The median contract rent in the County of Hawaii's the lowest in the state at $1,112 per month in 2011. Of great interest is the changing nature of the asking rent data itself. Changes in the way rents are advertised and the way they are recorded have introduced new problems for understanding asking rents. There is clearly more work to be done on the rental price issue. Data from the HHPS Demand Survey will be useful in checking the contract rents. The pending release of rent data from Census 2010 will also provide further information. Only in reconciling all of the various sources of data concerning Hawaii's rental housing market will we be able to fully understand the current state of the market and how it's likely to look in the future. Hawaii Housing Planning Study,2011: Rental Housing Page 1 0 SMS, Inc. October,2011 HAWAf I RENTS, 2000 TO 2011 In prior Hawai'i Housing Policy Studies, rents have been measured in terms of asking rents and contract rents. Asking rent is the stated base rent the landlord requests when advertising an available rental unit. When asking rents are counted (based on the number of published advertisements), it provides an indication of the level of activity in the rental market in much the same way as the number of home sales reflects the activity of the ownership market. Contract rent is the base rent as specified in the lease agreement. This provides a measure of how much renters are actually paying for their residence each month. Depending on market conditions, contracts rents may be higher or lower than asking rents. Contact rents change as a function of changes in asking rents. These changes occur as units change hands and landlords negotiate new lease terms, or as different rent amounts are imposed by landlords on the residents of occupied units. CONTRACT RENTS Data from the 2003 and 2006 Housing Policy Studies, the current HHPS, as well as information contained in the American Community Surveys between 2005 and 2009, indicates that contract rents have continued to climb, but at a decreasing rate, during the past five years. While rent increases across all counties were minimal in 2008 and 2009 due to the global economic recession, the most recent data regarding contract rents indicates that monthly rental rates are on the upswing. Figure 1: Median Contract Rent, Counties and State of Hawai i, 2005-2011 $1,500 Hawaii - Honolulu --- Maui •••••• Kauai — State $1,400 $1,300 $1,200 $1100 —�—T''�'•_---- ��.a...... ............ $1,000 / $900 $800 $700 $600 2005 2006 2007 2008 2009 2011* Source: 2005-2009 median contract rent from American Community Survey based on all rental units surveyed, with the exception of single family dwellings on ten or more acres of land, 2010-2011 median contract rent data from HHPS Housing Demand Survey Hawaii Housing Planning Study,2011: Rental Housing Page 2 0 SMS, Inc. October,2011 Table 1: Median Contract Rent for the Counties and State of Hawaii, 2005-2011 Year Median Contract Rent Hawaii Honolulu Maui Kauai State 2005 $742 $940 $912 $875 $911 2006 $804 $1,045 $1,081 $1,057 $1,010 2007 $871 $1,129 $1,163 $1,033 $1,098 2008 $906 $1,227 $1,131 $1,086 $1,167 2009 $921 $1,237 $1,186 $1,223 $1,172 2011* $1,112 $1,385 $1,201 $1,248 $1,321 Annual Percent Change 2005-2006 8% 11% 19% 21% 11% 2006-2007 8% 8% 8% -2% 9% 2007-2008 4% 9% -3% 5% 6% 2008-2009 2% 1% 5% 13% 1% 2009-2011 21% 12% 1% 2% 13% *data through June 30, 2011 Source: 2005-2009 median contract rent from American Community Survey based on all rental units surveyed, with the exception of single family dwellings on ten or more acres of land; 2010-2011 median contract rent data from HHPS Housing Demand Survey, 2010 data from the U.S. Census Bureau's Decennial Census will be incorporated as soon as it becomes available. In the State of Hawaii, median contract rent increased by approximately 10 percent in 2006 and 2007. The economic recession in 2008 and 2009 led to rent increases of only 6 percent and less than 1 percent, respectively. The first half of 2011 suggests that rents are on the way up again, with a substantial 13 percent increase statewide. Rents in the City and County of Honolulu have been steadily increasing from a median of $752 in 2000 to $940 in 2005 to $1,385 in 2011, a 43 percent increase over the last decade. Rents jumped 11 percent in 2006, with slightly more moderate increases of 8 and 9 percent in the subsequent two years. As a result of the economic recession that began in 2008, 2009 saw rents in Honolulu climb by just 1 percent. In the first half of 2011, however, median contract rent across the county jumped to $1,385 (12 percent increase). On the Big Island, renters were paying 8 percent more in 2006 than in 2005, with an additional 8 percent increase the following year. In 2008, however, countywide rents increased by only 4 percent and by just 2 percent in 2009. In the first part of 2011, the increase in median rents for Hawai'i County was 21 percent. This was the most dramatic change among all of Hawaii's counties. In Maui County, rents jumped nearly 20 percent from 2005 to 2006. Between 2006 and 2007, rents increased a more modest 8 percent. 2008 brought a slight decrease in Maui rents, which rebounded in 2009 to slightly above the 2007 median. In the first half of 2011 Maui has had a very slight increase in median rent, only 1 percent countywide. In the State of Hawaii, the largest increase in median rents in 2005 occurred in the County of Kauai (21 percent). Kauai's rental market appears to have to greatest volatility among the counties, dropping 2 percent in 2006 only to climb by 5 percent and 13 percent in 2008 and Hawari Housing Planning Study,2011: Rental Housing Page 3 0 SMS, Inc. October,2011 2009. Indeed, Kauai was the only county with a notable rent increase in 2009. Since then, rates have inched up by only 2 percent. The data for contract rents are supported by recent data published by the U.S. Bureau of Labor Statistics. The Consumer Price Index-All Urban Residents for Housing has increased from 177.9 in 2000 to 235.916 in 2010. The shelter payment index for those who rent their primary residence has gone from 180.3 in 2000 to 272.996 in 2010. The Figure below shows minimal increases in the CPI-U score for housing until 2005-2006, when the upward trend became more pronounced. Figure 2: Consumer Price Index-All Urban Customers, Housing, State of Hawai'i, 2000-2010 300.000 250.000 200.000 150.000 All items 100.000 — Housing Shelter 50.000 —Rentof primary residence —Owners'equivalent rent of primary residence 0.000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: U.S. Bureau of Labor Statistics, Consumer Price Index-AII Urban Consumers[CPI-U] Note that the CPI data are for Metro Honolulu and reflect the trend for the City & County in FMR data. We might suspect that Consumer Price Indices for other counties might show greater increase in rents. Hawaii Housing Planning Study,2011: Rental Housing Page 4 0 SMS, Inc. October,2011 Table 2. Average Asking Rent, Counties and State of Hawaii, 2003-2011 Group 2000 12001 12002 12003 12004 12005 12006 12007 12008 12009 2010 HOUSING 178 179 181 186 194 205 223 238 229 230 236 Shelter 192 193 196 200 210 221 242 261 249 250 253 Rent of primary residence 180 182 185 190 197 208 229 247 266 273 273 Owners' equivalent rent 196 198 202 206 214 225 248 268 256 264 266 Fuel and utilities 147 147 143 154 161 180 203 214 275 283 283 *Indexes on a December 1982=100 base. Source: U.S Bureauof Labor Statistics;Hawaii State Department of Business,Economic Development&Tourism, Statistics&Data Support Bran Based on decreasing rates of change in contract rents, we might expect that asking rents have been dropping or at least showing slower growth. Current trends suggest, however, that the cost to rent a home in the State of Hawaii's on the rise. Trends among the average asking rent, median contract rent and Fair Market Rent all point toward increases in the rents for units of all sizes in each of Hawaii's counties. ASKING RENTS In order to perform a thorough review of Hawaii's current rental housing market, a comprehensive data set was constructed to identify current and historical rental availability, rental rates and other trends. For each island, information including location, rent rate, bedrooms, property type, furnished or unfurnished, was gathered from current and historical rental advertisements for each island. Database entries excluded rentals wanted, vacation rentals, rentals to share, property management, rooms for rent, and all commercial properties. The Oahu rental database was collected from the Honolulu Advertiser and Star Bulletin's mid- month Sunday classified advertisements for rentals of houses, apartments (including both apartment building units and condominium units) and townhouses'. For the purposes of this review, the Oahu rental database was filtered to include advertisements for three- and four- bedroom houses and studio, one-, two-, and three-bedroom apartments. The neighbor island rental database was constructed from the mid-month Sunday Classified ads from the major newspapers for each island. Sources include the Maui News, West Hawaii Today, the Hawaii Tribune Herald and The Garden Island. The database contains information from advertisements for two-, three-, and four-bedroom houses and studio, one- and two- bedroom apartments. Although still among the highest in the nationz, asking rents across Hawaii had been falling since 2007. In the past six to twelve months, however, there have been indications that asking rents are on the rise. Discussion with some experts (developers, advocates for affordable housing, and housing planners) suggest that asking rents are rising and have been for at least 18 months. HHPS Rental Housing Study data tend to support the upswing in asking rents. 1 Data collection continued from the single source following the merger of the Honolulu Advertiser and Star Bulletin June, 2010. 2 Out of Reach 2011, National Low Income Housing Coalition, June 2011, hftp7//www.niihc.org/oor/oor2011. Hawaii Housing Planning Study,2011: Rental Housing Page 5 0 SMS, Inc. October,2011 Table 3. Average Asking Rent, Counties and State of Hawai'i, 2003-2011 Year Average Asking Rent Hawaii Honolulu Maui Kauai State 2003 $1,162 $1,408 $1,423 $1,298 $1,360 2004 $1,254 $1,529 $1,429 $1,422 $1,464 2005 $1,348 $1,913 $1,573 $1,574 $1,617 2006 $1,368 $1,862 $1,658 $1,658 $1,754 2007 $1,434 $1,759 $1,741 $1,737 $1,693 2008 $1,447 $1,765 $1,629 $1,659 $1,675 2009 $1,309 $1,607 $1,389 $1,428 $1,514 2010 $1,178 $1,653 $1,415 $1,414 $1,527 2011 $1,097 $1,843 $1,482 $1,445 $1,640 Annual Percent Change 2003 --- --- --- --- 2004 8% 9% 0% 10% 8% 2005 10% 25% 10% 11% 10% 2006 8% -3% 5% 5% 8% 2007 -3% -6% 5% 5% -3% 2008 -1% 0% -6% 4% -1% 2009 -10% -9% -15% -14% -10% 2010 1% 3% 2% -1% 1% 2011 -7% 11% 5% 2% 7% Source: Hawaii Information Service, data through June 30, 2011 Figure 3: Average Asking Rent by County, 2003-2011 s s. s. s. s. Haren .-M. ---Maul Yaual Stag $lpll NB NOt NR NR Nm NB N® NN Nll Source: Hawaii Information Service, data through June 30, 2011 Hawaii Housing Planning Study,2011: Rental Housing Page 6 0 SMS, Inc. October,2011 Unlike comparable markets across the nation, Hawaii's rental market has not exhibited a significant decline in the average asking rent since the economic recession began in 2008. Rather than accept lower rent amounts, landlords are opting to allow their units to remain empty (pushing the vacancy rate up) while they wait for the market to recover. Because increasing rent amounts have only become apparent in the past several months, it is nearly impossible to predict the amount they will increase and over what period of time. Table 4. Average Asking Rent for Single Family Homes and Apartments, Counties and State of Hawaii, 2003-2011 Count State of Hawaii Year Honolulu Hawaii Maui Kauai A ts. Houses Apt Houses Apts. Houses A ts. Houses A ts. Houses 2003 $1,183 $1,893 $992 $1,263 $1,229 $1,515 $1,021 $1,449 $1,160 $1,553 2004 $1,298 $2,020 $1,113 $1,332 $1,270 $1,502 $1,168 $1,563 $1,274 $1,685 2005 $1,622 $2,420 $1,206 $1,406 $1,419 $1,630 $1,270 $1,738 $1,466 $1,712 2006 $1,607 $2,314 $1,253 $1,416 $1,468 $1,705 $1,353 $1,803 $1,564 $1,956 2007 $1,539 $2,186 $1,303 $1,504 $1,627 $1,782 $1,422 $1,879 $1,513 $1,901 2007 $1,559 $2,179 $1,210 $1,606 $1,482 $1,688 $1,347 $1,813 $1,497 $1,879 2009 $1,414 $2,035 $1,075 $1,472 $1,234 $1,452 $1,122 $1,578 $1,354 $1,708 2010 $1,447 $2,155 $939 $1,349 $1,108 $1,538 $1,130 $1,625 $1,346 $1,774 2011 $1,582 $2,508 $861 $1,218 $1,122 $1,742 $1,147 $1,657 $1,431 $1,935 Source. Hawaii Information Service, data through June 30, 2011 Figure 4: Average Asking Rent for Apartments by County, 2003-2011 $3,000 Honolulu $2,500 -Hawaii $2,000 -Maui -Kauai $1,500 State $1,000 $500 $0 2003 2004 2005 2006 2007 2007 2009 2010 2011 Source: Hawaii Information Service, data through June 30,2011 Hawaii Housing Planning Study,2011: Rental Housing Page 7 ©SMS, Inc. October,2011 Figure 5: Average Asking Rent for Single Family Homes by County, 2003-2011 $3,000 $2,500 $2,000 $1,500 —Honolulu $1,000 —Hawaii —Maui $500 —Kauai —State $0 2003 2004 2005 2006 2007 2007 2009 2010 2011 Source: Hawaii Information Service, data through June 30, 2011 FAIR MARKET RENTS In an effort to clarify the recent data that points to the beginning of an upward trend for monthly rental rates across the State of Hawaii, the 2011 HHPS Rental Housing Study has incorporated Fair Market Rent data provided by the U.S. Department of Housing and Urban Development (HUD). Fair Market Rents (FMRs) are gross rent estimates that include the shelter rent plus the cost of all tenant-paid utilities, except telephones, cable or satellite television service, and internet service. HUD sets FMRs to assure that a sufficient supply of rental housing is available to program participants. To accomplish this objective, FMRs must be both high enough to permit a selection of units and neighborhoods and low enough to serve as many low-income families as possible. HUD uses data from the Decennial Census, American Community Surveys, American Housing Surveys, and random-digit dialing telephone surveys to determine fair market rents. Fair market rents are expected to be higher than contract rents (because they are a type of asking rent and are calculated based on a sample of recent movers in two bedroom units deemed to be of standard quality) and lower than asking rents because they are intended to serve the needs of people with lower incomes. While the FMR is calculated for a very specific unit type, the general trend of FMR rates is indicative of the state of the rental housing market as a whole. Increases in FMRs are typically a reflection of price increases throughout the rental housing market (see Figures 6 through 9 below). In Hawaii, FMR have been rising at a relatively steady pace since the beginning of the housing market run-up in 2003. This is true for all counties, as well as for all unit types and sizes. Hawaii Housing Planning Study,2011: Rental Housing Page 8 0 SMS, Inc. October,2011 The most recent Fair Market Rents are more difficult to interpret. As evidenced in the figures below, FMRs for all counties rose steadily from 2003 to 2008. Since 2008, however, annual increases in FMRs have been slight. It is even more puzzling to note that, between 2010 and 2011, the Honolulu FMR went down by two dollars ($2). Figure 6: Fair Market Rent, City& County of Honolulu, 2000-2011 $3,000 -Efficiency $2,500 -One-BR -Two-BR -Three-BR $2,000 -Four-BR $1,500 $1,000 $500 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: U.S. Department of Housing and Urban Development, Fair Market Rents,2000-2011 Table 5. Fair Market Rent, City & County of Honolulu, 2000-2011 Year Honolulu Efficient One-Br Two-Br Three Br Four Br+ 2000 $604 $723 $851 $1,150 $1,244 2001 $595 $713 $839 $1,134 $1,226 2002 $596 $714 $840 $1,135 $1,227 2003 $599 $717 $844 $1,142 $1,235 2004 $642 $769 $905 $1,225 $1,325 2005 $760 $891 $1,087 $1,577 $1,765 2006 $836 $997 $1,205 $1,757 $2,069 2007 $888 $1,058 $1,279 $1,865 $2,196 2008 $1,131 $1,348 $1,630 $2,377 $2,729 2009 $1,140 $1,337 $1,631 $2,367 $2,649 2010 $1,191 $1,397 $1,704 $2,473 $2,767 2011 1 $1,190 $1,396 $1,702 $2,470 $2,764 Source: U.S. Department of Housing and Urban Development, Fair Market Rents, 2000-2011 Hawari Housing Planning Study,2011: Rental Housing Page 9 0 SMS, Inc. October,2011 Figure 7: Fair Market Rent, County of Hawai'i, 2000-2011 $2,000 $1,800 $1,600 $1,400 Efficiency $1,200 $1,000 —One-BR $800 Two-BR $600 Three-BR $400 —Four-BR $200 $0 ti ti ti ti ti ti ti ti ti ti ti ti Source: U.S. Department of Housing and Urban Development, Fair Market Rents, 2000-2011 Table 6. Fair Market Rent, County of Hawaii, 2000-2011 Hawaii Efficient One-Br Two-Br r+ 2000 $470 $613 $705 $936 $1,153 2001 $463 $604 $695 $923 $1,137 2002 $464 $605 $696 $924 $1,138 2003 $466 $608 $699 $929 $1,145 2004 $474 $618 $711 $944 $1,164 2005 $507 $729 $818 $1,153 $1,264 2006 $627 $753 $845 $1,191 $1,306 2007 $649 $779 $874 $1,232 $1,350 2008 $741 $889 $998 $1,407 $1,542 2009 $770 $925 $1,038 $1,464 $1,604 2010 $818 $982 $1,102 $1,554 $1,703 2011 $850 $1,020 $1,145 $1,614 $1,769 Source: U.S. Department of Housing and Urban Development, Fair Market Rents, 2000-2011 Hawai'i Housing Planning Study,2011: Rental Housing Page 10 0 SMS, Inc. October,2011 Figure 8: Fair Market Rent, County of Maui, 2000-2011 $2,500 $2,000 $1,500 Efficiency -One-BR $1,000 Two-BR Three-BR $500 -Four-BR $0 00 O� O� O� O� O� OfO 01 lb 00 ti0 N T Q' LO LO LO ti0 LO LO LO LO LO LO ti0 Source: U.S. Department of Housing and Urban Development, Fair Market Rents, 2000-2011 Table 7. Fair Market Rent, County of Maui, 2000-2011 Year Maui Efficiency One-Br Two-Br Three Br Four Br+ 2000 $759 $941 $1,148 $1,483 $1,680 2001 $748 $928 $1,132 $1,462 $1,656 2002 $749 $929 $1,133 $1,464 $1,658 2003 $753 $934 $1,140 $1,472 $1,667 2004 $765 $950 $1,159 $1,496 $1,695 2005 $892 $988 $1,149 $1,537 $1,647 2006 $921 $1,021 $1,187 $1,588 $1,701 2007 $953 $1,056 $1,228 $1,643 $1,760 2008 $1,021 $1,132 $1,316 $1,761 $1,886 2009 $1,137 $1,260 $1,465 $1,960 $2,099 2010 $1,207 $1,337 $1,555 $2,081 $2,228 2011 $1,255 $1,391 $1,617 $2,164 $2,317 Source: U.S. Department of Housing and Urban Development, Fair Market Rents, 2000-2011 Hawaii Housing Planning Study,2011: Rental Housing Page 11 0 SMS, Inc. October,2011 Figure 9: Fair Market Rent, County of Kaua'i, 2000-2011 $2,500 $2,000 $1,500 Efficiency One-BR $1,000 Two-BR Three-BR $500 Four-BR $0 Oh OHO 01 04i O�' y0 titi y0 LO LO LO LO IV IV IV IV IV y0 IV Source: U.S. Department of Housing and Urban Development, Fair Market Rents, 2000-2011 Table 8. Fair Market Rent, County of Kauai, 2000-2011 Year Kauai Efficient One-Br Two-Br Three Br Four Br+ 2000 $600 $897 $1,092 $1,445 $1,562 2001 $591 $884 $1,076 $1,424 $1,540 2002 $592 $885 $1,077 $1,426 $1,542 2003 $595 $889 $1,084 $1,434 $1,551 2004 $605 $904 $1,102 $1,458 $1,577 2005 $715 $831 $1,061 $1,332 $1,449 2006 $739 $832 $1,096 $1,375 $1,497 2007 $764 $861 $1,134 $1,432 $1,549 2008 $797 $898 $1,183 $1,485 $1,616 2009 $888 $1,000 $1,318 $1,654 $1,800 2010 $943 $1,062 $1,399 $1,756 $1,911 2011 $980 $1,104 $1,454 $1,825 $1,986 Source: U.S. Department of Housing and Urban Development, Fair Market Rents, 2000-2011 Hawaii Housing Planning Study,2011: Rental Housing Page 12 0 SMS, Inc. October,2011 RENTAL VACANCY RATES Rental vacancy rates for the County of Honolulu and the State of Hawaii have been on the rise since 2005. Statewide vacancy rates hit an all-time high of 9.2 percent in 2009. In 2010, the State's vacancy rate followed the national trend, dipping back down to 8.1 percent. Although the increase was not as significant between 2009 and 2010 as in prior years, the rental market in Honolulu continues to have increasing numbers of vacant rental units. Figure 10. Rental Vacancy Rates, 1986-2010 12 10 10.2 g 1 7.2 6 4 2 —United States —State of Hawaii —Honolulu,Hl 0 40 0� 4S' 4�' 90 9ti 9ti 93 9b Oh 90 9� ag 9�' 00 Oti Oti 0�' 0� 05 00 0� 00 Oa ti0 ti0 ti9 10 ti0 ti9 10 ti0 ti9 yA ti0 ti9 ti0 ti0 10 ,00 ti0 ti0 ,00 ti0 0 ti0 ti0 ,0 ti0 Source: U.S. Census Bureau's Current Population Survey/Housing Vacancy Survey, 1986-2010 Hawaii Housing Planning Study,2011: Rental Housing Page 13 0 SMS, Inc. October,2011 Table 9. Rental Vacancy Rates, 1986-2010 Honolulu State of United MSA Hawaii States 1986 5.0 5.7 7.3 1987 5.5 6.5 7.7 1988 4.1 6.3 7.7 1989 5.1 6.6 7.4 1990 3.8 6.6 7.2 1991 3.8 5.8 7.4 1992 3.4 5.8 7.4 1993 3.9 6.8 7.3 1994 5.0 7.4 7.4 1995 5.4 6.3 7.6 1996 4.7 6.0 7.8 1997 6.4 7.1 7.7 1998 6.3 6.9 7.9 1999 7.6 7.6 8.1 2000 4.9 5.3 8.0 2001 8.0 8.2 8.4 2002 5.5 7.3 8.9 2003 7.0 8.9 9.8 2004 5.8 7.7 10.2 2005 3.9 5.1 9.8 2006 3.9 5.5 9.7 2007 5.1 6.3 9.7 2008 5.1 7.2 10.0 2009 6.9 9.2 10.6 2010 1 7.2 1 8.1 1 10.2 Source: U.S. Census Bureau's Current Population Survey/Housing Vacancy Survey, 1986-2010 Like FMR data, rental vacancy rates provide an indication of the strength of the rental market, For example, the vacancy rate for the County of Honolulu rose significantly between 2006 and 2007. High and rising vacancy rates often put downward pressure on rents, yet median asking rents increased significantly over the same period. A change in the price distribution of vacant units, with a larger proportion of the vacant units renting for over $1,000 per month, could explain why median rents increased while vacancy rates rose. Hawaii Housing Planning Study,2011: Rental Housing Page 14 ©SMS, Inc. October,2011 Figure 11: Vacancy Rate and Median Contract Rent, County of Honolulu, 2000-2009 $1,400 9.0 $1,200 8.0 c 7.0 CID $1,000 6.0 v M $800 5.0 z c o U $600 4.0 M m $400 3.0 > CID —Median Contract Rent —Vacancy Rate 2.0 $200 1.0 $0 0.0 Y2000Y2001Y2002Y2003Y2004Y2005Y2006Y2007Y2008Y2009 One reason that rising vacancy rates do not mean relief throughout the market is basic economics. If a property owner is unable to rent a unit for an amount higher than what is required to cover his costs (financing, maintenance, etc.), the rent cannot fall to (or, at least, cannot be maintained at) that lower level even if there is demand. In these cases, the owner may forego unit maintenance and allow the unit to fall into disrepair and become un-rentable. What was a vacant unit, therefore, is removed entirely from the housing stock. Even when there are a substantial number of vacant units, those units may be priced out of reach of those households who need them. This is clearly indicated by the disparity in the affordable and average rents detailed in Figure 11. Units may also be vacant as a result of their location. It is not enough to have vacant units somewhere in the county; they must be located where people are moving and can make a living. With transportation costs continuing to climb, having an abundance of vacant rental housing units that are not conveniently located to major employment centers does not benefit those most in need of housing. Hawaii Housing Planning Study,2011: Rental Housing Page 15 0 SMS, Inc. October,2011 APPENDIX Hawai'i Housing Planning Study,2011: Rental Housing Page 16 0 SMS, Inc. October,2011 Figure A-1: Average Asking Rent for Apartments, State of Hawai'i, 2003-2011 $2,500 $2,300 0 BR $2,100 $1,900 -I BR $1,700 $1,500 2 BR $1,300 -3BR $1,100 $900 -All $700 State Apts $500 2003 2004 2005 2006 2007 2008 2009 2010 2011• Source: Hawaii Information Service for SMS Hawaii Housing Policy Studies, 2003,2006 and 2011 Table A-1. Average Asking Rents for Apartments by Size, State of Hawaii, 2003-2011 Apartnents- Stale of Hawaii 0 BR 1 BR 2 BR 3 BR Total 2003 $739 $941 $1,292 $1,724 $1,160 2004 $781 $1,019 $1,364 $1,895 $1,274 2005 $898 $1,174 $1,583 $2,076 $1,466 2006 $931 $1,227 $1,669 1 $2,178 $1,564 2007 $929 $1,213 $1,650 $2,152 $1,513 2008 $946 $1,198 $1,633 $2,048 $1,497 2009 $888 $1,119 $1,477 $2,001 $1,354 2010 $922 $1,141 $1,544 $2,001 $1,346 2011 $9611 $1,251 $1,787 $2,2781 $1,431 Source: Hawaii Information Service, data through June 30, 2011 Hawari Housing Planning Study,2011: Rental Housing Page 17 0 SMS, Inc. October,2011 Figure A-2. Average Asking Rent for Apartments by County, 2003-2011 Hawai'i Housing Planning Study,2011: Rental Housing Page 18 Table A-2. Average Asking Rents for Apartments by Size, Counties of Hawaii, 2003-2011 Source: Hawaii Information Service, data through June 30, 2011 Hawai'i Housing Planning Study,2011: Rental Housing Page 19 County Honolulu Hawaii Maui Kauai Year 0 BR 1 BR 2 BR 3 BR Total 0 BR 1 BR 2 BR 3 BR Total 0 BR 1 BR 2 BR 3 BR Total 0 BR 1 BR 2 BR 3 BR Total 2003 $737 $932 $1,323 $1,717 $1,183 $723 $870 $1,107 $1,449 $992 $770 $1,022 $1,319 $2,004 $1,229 $694 $943 $1,183 $1,480 $1,021 2004 $770 $1,012 $1,380 $1,931 $1,298 $783 $864 $1,250 $1,686 $1,113 $807 $1,126 $1,347 $1,810 $1,270 $837 $1,054 $1,309 $1,862 $1,168 2005 $918 $1,238 $1,757 $2,259 $1,622 $900 $946 $1,295 $1,821 $1,206 $877 $1,215 $1,472 $2,018 $1,419 $863 $1,102 $1,369 $1,849 $1,270 2006 $955 $1,256 $1,704 $2,213 $1,607 $835 $964 $1,430 $1,894 $1,253 $934 $1,221 $1,520 $2,044 $1,468 $924 $1,066 $1,474 $2,018 $1,353 2007 $950 $1,236 $1,682 $2,160 $1,539 $858 $1,025 $1,448 $2,032 $1,303 $950 $1,294 $1,625 $2,209 $1,627 $881 $1,169 $1,650 $2,307 $1,422 2008 $971 $1,2281$1,697 $2,126 $1,559 $837 $1,000 $1,330 1$1,7021$1,2101$1,0341$1,2451$1,569 1$2,055 $1,482 $958 $1,168 $1,460 $1,934 $1,347 2009 $917 $1,156 $1,548 $2,074 $1,414 $717 $889 $1,179 $1,759 $1,075 $918 1$1,0691$1,2771$1,808 $1,2'341$8241 $975 $1,309 $1,543 $1,122 2010 $987 $1,232 $1,640 $2,096 $1,447 $712 $817 $1,0951$1,6061 $939 1 $792 1 $985 1$1,2031$1,8131$1 1-8 $827 $976 $1,377 $1,556 $1,130 2011 $1,063 $1,375 $1,894 $2,403 $1,582 $692 $818 $1.0931$1.4341 $861 1 $816 1$1,115 $1,353 $1,907 $1,122 $851 $1,060 $1,570 $1,588 $1,147 Source: Hawaii Information Service, data through June 30, 2011 Hawai'i Housing Planning Study,2011: Rental Housing Page 19 Figure A-3. Average Asking Rent for Houses by County, 2003-2011 City & County of Honolulu $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 2003 2004 2005 2006 2007 2008 2009 2010 2011' :ounry or tvtaw —0 BR _1BR —2 BR —3 BR —4 BR —4,BR —All Honolulu Houses $5,000 —0 BR $4,500 $4,000 —1 BR $3,500 —2 BR $3,000 $2,500 —3 BR $2,000 —4 BR $1,500 —4+BR $1,000 $500 —All Maui Houses $0 2003 2004 2005 2006 2007 2008 2009 2010 2011* County of Hawaii $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 2003 2004 2005 2006 2007 2008 2009 2010 2011" r.^I 1"+11 .,a u, —0 BR —1 BR —2 BR —3 BR —4 BR —4+BR —All BI Houses Hawai'i Housing Planning Study,2011: Rental Housing Page 20 Table A-3. Average Asking Rents for Houses by Size, Counties of Hawaii, 2003-2011 Source: Hawaii Information Service, data through June 30, 2011 Hawai'i Housing Planning Study,2011: Rental Housing Page 21 County Honolulu Hawaii Year 0 BR 1 BR 2 BR 3 BR 4 BR 4+BR Total 0 BR 1 BR 2 BR 3 BR 4 BR 4+BR Total 2003 $873 $1,128 $1,421 $1,926 $2,535 $3,825 $1,893 $704 $758 $1,120 $1,371 $1,508 $2,000 $1,263 2004 $856 $1,152 $1,516 $2,102 $2,711 $3,252 $2,020 $740 $781 $1,149 $1,480 $1,618 $2,046 $1,332 2005 $1,186 $1,346 $1,819 $2,377 $3,157 $5,348 $2,420 $881 $936 $1,276 $1,479 $1,762 $1,813 $1,406 2006 $1,246 $1,345 $1,755 $2,333 $2,860 $4,113 $2,314 $958 $929 $1,312 $1,487 $1,755 $1,809 $1,416 2007 $982 1$1,299 1$1,666 $2,266 1$2,775 1 $3,430 $2,186 $815 $1,045 $1,322 $1,583 $1,945 $2,084 $1,504 2008 $1,009 1$1,301 $1,598 $2,213 $2,852 $3,482 $2,179 $844 $1,006 $1,373 $1,685 $2,534 $1,933 $1,606 2009 $981 $1,164 $1,534 $2,093 $2,641 $3,470 $2,035 $735 $948 $1,299 $1,568 $1,961 $2,134 $1,472 2010 $1,090 $1,308 $1,576 $2,210 $2,940 $3,805 $2,155 $984 $880 $1,162 $1,448 $1,638 $2,374 $1,349 2011 $1,287 $1,501 $1,794 $2,437 $3,201 $4,271 $2,508 $833 $726 $984 $1,242 $1,860 $1,792 $1,218 Source: Hawaii Information Service, data through June 30, 2011 Hawai'i Housing Planning Study,2011: Rental Housing Page 21 County Maui Kauai Year 0 BR 1 BR 2 BR 3 BR 4 BR 4+BR Total 0 BR 1 BR 2 BR 3 BR 4 BR 4+BR Total 2003 $796 $980 $1,342 $1,892 $2,382 $2,925 $1,515 $1,060 $891 $1,343 $1,582 $2,025 $2,250 $1,449 2004 $833 $1,040 $1,399 $1,894 $2,462 $3,084 $1,502 $828 $1,060 $1,417 $1,766 $2,179 $2,900 $1,563 2005 $842 $1,079 $1,519 $2,023 $2,743 $3,231 $1,630 $994 $1,125 $1,492 $1,876 $2,643 $3,444 $1,738 2006 $902 $1,124 $1,499 $2,140 $2,876 $2,883 $1,705 $891 $1,195 $1,601 $1,980 $2,376 $2,620 $1,803 2007 $930 1$1,203 1$1,560 $2,160 $2,867 $2,739 $1,782 $956 $1,246 $1,666 $2,054 $2,356 $2,567 $1,879 2008 $1,033 $1,183 $1,485 $2,049 $2,886 $3,074 $1,6881 $1,058 1$1,200 $1,568 1$2,010 $2,276 $3,129 $1,813 2009 $793 $1,009 $1,265 $1,853 $2,313 $2,697 $1,452 $857 $1,072 $1,345 1$1,743 $2,335 $3,575 $1,578 2010 $818 $954 $1,247 $1,817 $3,075 $3,217 $1,538 $806 $1,033 $1,335 1$1,703 $2,164 $4,850 $1,625 2011 $899 1$1,066 $1,350 $1,966 $3,684 $4,354 $1,742 $900 1$1,024 $1,522 $1,699 $2,223,$3,271 LLLJ Source: Hawaii Information Service, data through June 30, 2011 Hawai'i Housing Planning Study,2011: Rental Housing Page 21 Table A-4. Average Asking Rent, Districts and Counties, 2010 Source: Hawaii Information Service, data through Dec. 2010 Hawai'i Housing Planning Study,2011: Rental Housing Page 22 Apartment House Maui County 0 1 2 3 Total 0 1 2 3 4 4+ Total Central $746 $857 $1,025 $1,572 $963 $748 $888 $1,064 $1,568 $1,950 $3,045 $1,308 South $1,323 $777 $2,068 $983 $1,207 $1,866 $1,171 $883 $840 $1,450 $967 $1,301 $2,081 $1,012 $4,418 $1,720 $2,642 $1,860 Upcount $2,640 $717 Captain Cook-Kealakekua $953 $1,150 $1,555 $912 $861 $851 $939 $1,282 $1,742 $1,401 $2,733 $1,759 $3,617 $1,475 West Waikoloa $874 $1,181 $1,521 $805 $1,957 $11,301 $1,158 $773 $1,204 $1,688 $2,502 $2,723 $3,000 $1,961 Total $792 $784 $985 $1,203 $1,813 $1,108 $728 $818 $954 $1,247 $1,817 $3,075 $2,599 $3,217 $1,538 $712 Apartment House Kauai County 0 1 2 3 Total 0 1 2 3 4 4+ Total West $891 $885 $975 $1,500 $930 $650 $800 $1,191 $1,541 $1,980 $1,389 Lihue $782 $769 $1,324 $1,319 $1,157 $1,087 $1,350 $1,621 $1,667 $3,750 $1,675 Wailua-Anahola $773 $1,014 $1,194 $1,425 $1,034 $860 $1,078 $1,256 $1,587 $2,529 $2,400 $1,489 Poipu-Kalaheo $774 $1,033 $1,148 $1,719 $1,114 $808 $905 $1,317 $1,724 $2,021 $1,545 North Shore $890 $1,043 $1,710 $2,150 $1,243 $850 $1,228 $1,701 $2,264 $2,533 $7,867 $2,231 Total $827 $976 $1,377 $1,556 $1,130 $806 $1,033 $1,335 $1,703 $2,164 $4,850 $1,625 Apartment House C&C of Honolulu 0 1 2 3 Total 0 1 2 3 4 4+ Total Central $837 $1,031 $1,418 $1,739 $1,382 $958 $1,090 $1,473 $2,037 $2,450 $2,895 $1,972 Downtown $942 $1,236 $1,727 $2,155 $1,476 East Honolulu $1,015 $1,642 $2,898 $2,338 $2,125 Ewa Plain $930 $1,019 $1,528 $1,818 $1,559 $959 $979 $1,631 $2,108 $2,600 $3,262 $2,226 Hawaii Kai $1,143 $1,530 $2,179 $2,562 $2,147 $1,068 $1,317 $1,893 $2,947 $3,198 $6,725 $2,813 Honolulu $894 $1,115 $1,723 $2,892 $1,425 $1,600 $929 $1,467 $2,612 $2,644 $3,267 $1,819 Leeward $800 $1,039 $1,044 $1,370 $1,051 $829 $863 $1,275 $1,647 $1,925 $2,666 $1,578 Makiki $894 $1,086 $1,409 $2,036 $1,208 Makiki/Manoa 1 $903 1 $1,317 $1,765 $2,799 $3,133 $3,567 $2,309 Other $1,244 $1,515 $1,764 $1,805 $1,519 $994 $1,272 $1,602 $2,183 $3,237 $4,406 $2,081 Pearl City/Aea $841 $1,125 $1,508 $1,986 $2,471 $3,378 $2,022 Pearlridge $928 $1,191 $1,501 $1,805 $1,396 Salt Lake $998 $1,196 $1,524 $2,026 $1,457 Waialae/Kahala $1,147 $1,719 $1,974 $3,172 $4,190 $6,200 $3,143 Waikiki $1,043 $1,515 $2,300 $3,453 $1,555 Windward $1,283 $1,631 $1,769 $2,492 $1,771 $1,469 $1,624 $1,894 $2,608 $3,768 $4,139 $2,515 Total $987 $1,232 $1,640 $2,096 $1,447 $1,090 $1,308 $1,576 $2,210 $2,940 $3,805 $2,155 Source: Hawaii Information Service, data through Dec. 2010 Hawai'i Housing Planning Study,2011: Rental Housing Page 22 Apartment House County of Hawaii 0 1 2 3 Total 0 1 2 3 4 4+ Total East Hawaii $687 $661 $957 $969 $723 $721 $792 $930 $1,129 $1,323 $2,068 $1,075 Kona-Keauhou $738 $883 $1,115 $1,450 $991 $1,246 $1,012 $1,373 $1,720 $1,967 $2,640 $1,599 Captain Cook-Kealakekua $657 $825 $1,078 $851 $791 $1,182 $1,401 $1,759 $1,900 $1,290 Waikoloa $740 $805 $1,116 $1,853 $1,158 $1,000 $1,402 $1,679 $1,900 $2,700 $1,656 Waimea-Kohala $784 $830 $1,022 $850 $728 $898 $1,230 $1,518 $1,636 $2,599 $1,407 Total $712 $817 $1,095 $1,606 $939 $984 $880 $1,162 $1,448 $1,638 $2,374 $1,349 Source: Hawaii Information Service, data through Dec. 2010 Hawai'i Housing Planning Study,2011: Rental Housing Page 22 Table A-5. Affordably Housing Data, State and Counties of Hawai'i, 2011 Honolulu Hawaii Maui Kauai Hawaii Non- State County County County County Metro area Total Number of Households 437,976 303,794 63,209 48,934 21,968 134,182 Renter Households 183,562 133,659 21,659 20,486 7,687 49,903 Percent Renter 41.9% 44.0% 34.3% 41.9% 35.0% 37.2% 2011 Area Median Income' Annual $78,790 $81,600 $68,700 $76,000 $75,200 $72,428 Monthly $6,566 $6,800 $5,725 $6,333 $6,267 $6,036 30%ofAM12 $23,637 $24,480 $20,610 $22,800 $22,560 $21,728 Maximum Affordable Monthly Housing Cost by% ofAMI 30% $591 $612 $515 $570 $564 $543 50% $985 $1,020 $859 $950 $940 $905 80% $1,576 $1,632 $1,374 $1,520 $1,504 $1,449 100% $1,970 $2,040 $1,718 $1,900 $1,880 $1,811 2011 Fair Market Rent(FMR)° Zero-Bedroom $1,148 $1,190 $850 $1,255 $980 $1,037 One-Bedroom $1,339 $1,396 $1,020 $1,391 $1,104 $1,185 Two-Bedroom $1,616 $1,702 $1,145 $1,617 $1,454 $1,387 Three-Bedroom $2,308 $2,470 $1,614 $2,164 $1,825 $1,872 Four-Bedroom $2,564 $2,764 $1,769 $2,317 $1,986 $2,028 %Change from 2000 Base Rent to 2011 FMR Zero-Bedroom 94% 95% 82% 97% 91% 90% One-Bedroom 94% 96% 81% 97% 92% 90% Two-Bedroom 94% 95% 81% 97% 92% 90% Three-Bedroom 94% 96% 81% 97% 92% 90% Four-Bedroom 94% 95% 82% 97% 92% 90% Annual Income Needed to Afford FMR Zero-Bedroom $45,931 $47,600 $34,000 $50,200 $39,200 $41,461 One-Bedroom $53,551 $55,840 $40,800 $55,640 $44,160 $47,419 Two-Bedroom $64,651 $68,080 $45,800 $64,680 $58,160 $55,468 Three-Bedroom $92,302 $98,800 $64,560 $86,560 $73,000 $74,899 Four-Bedroom $102,553 $110,560 $70,760 $92,680 $79,440 $81,108 Percent ofAMI Needed to Afford FMR Zero-Bedroom 58% 58% 49% 66% 52% 57% One-Bedroom 68% 68% 59% 73% 59% 65% Two-Bedroom 82% 83% 67% 85% 77% 77% Three-Bedroom 117% 121% 94% 114% 97% 103% Four-Bedroom 130% 135% 103% 122% 106% 112% 2011 Renter Household Income Median Renter Household Incomes $48,542 $48,917 $43,006 $52,503 $44,519 $47,155 Percent Needed to Afford 2 BR FMR 133% 139% 106% 123% 131% 118% Rent Atbrdable at Median $1,214 $1,223 $1,075 $1,313 $1,113 $1,179 % Renters Unable to Afford 2 BR FMR' 63% 66% 53% 60% 63% 58% 2011 Renter Wage Estimated Mean Renter Wage' $13.65 $13.95 $12.08 $22.71 $11.79 $12.91 Rent Atbrdable at Mean Wage $710 $725 $628 $1,181 $613 $671 Source: National Low Income Housing Coalition http://www.niihc.orgloor/oor2011/data.cfm?getstate=on&state=Hl Hawari Housing Planning Study,2011: Rental Housing Page 23 0 SMS, Inc. October,2011 Table A-5a. Affordably Housing Data, State and Counties of Hawai'i, 2011 (continued) Hawaii Honolulu Hawaii Maui Kauai felon-Metro State County County County County area 2011 Minimum Wage Minimum Wage $7.25 $7.25 $7.25 $7.25 $7.25 $7.25 Rent Affordable at Minimum Wage $377 $377 $377 $377 $377 $377 2011 Supplemental Security Income Monthly SSI Payment $674 $674 $674 $674 $674 $674 Rent Affordable at SSI $202 $202 $202 $202 $202 $202 Housing Wage Zero-Bedroom $22.08 $22.88 $16.35 $24.13 $18.85 $19.93 One-Bedroom $25.75 $26.85 $19.62 $26.75 $21.23 $22.80 Two-Bedroom $31.08 $32.73 $22.02 $31.10 $27.96 $26.67 Three-Bedroom $44.38 $47.50 $31.04 $41.62 $35.10 $36.01 Four-Bedroom $49.30 $53.15 $34.02 $44.56 $38.19 $38.99 Housing Wage as% of Minimum Wage Zero-Bedroom 305% 316% 225% 333% 260% 275% One-Bedroom 355% 370% 271% 369% 293% 314% Two-Bedroom 429% 451% 304% 429% 386% 368% Three-Bedroom 612% 655% 428% 574% 484% 497% Four-Bedroom 680% 733% 469% 615% 527% 538% Housing Wage as% of Mean Renter Wage Zero-Bedroom 162% 164% 135% 106% 160% 154% One-Bedroom 189% 193% 162% 118% 180% 177% Two-Bedroom 228% 235% 182% 137% 237% 207% Three-Bedroom 325% 341% 257% 183% 298% 279% Four-Bedroom 361% 381% 282% 196% 324% 302% Work HourslWeek at Minimum Wage Needed to Afford FMR Zero-Bedroom 122 126 90 133 104 110 One-Bedroom 142 148 108 148 117 126 Two-Bedroom 171 181 121 172 154 147 Three-Bedroom 245 262 171 230 194 199 Four-Bedroom 272 293 188 246 211 215 Work HourslWeek at Mean Renter Wage Needed to Afford FMR Zero-Bedroom 65 66 54 43 64 62 One-Bedroom 75 77 65 47 72 71 Two-Bedroom 91 94 73 55 95 83 Three-Bedroom 130 136 103 73 119 112 Four-Bedroom 144 152 113 78 130 121 Full-time Jobs at Minimum Wage Needed to Aford FMR Zero-Bedroom 3 3.2 2.3 3.3 2.6 2.7 One-Bedroom 3.6 3.7 2.7 3.7 2.9 3.1 Two-Bedroom 4.3 4.5 3 4.3 3.9 3.7 Three-Bedroom 6.1 6.6 4.3 5.7 4.8 5 Four-Bedroom 6.8 7.3 4.7 6.1 5.3 5.4 Full-time Jobs at Mean Renter Wage Needed to Afford FMR Zero-Bedroom 1.6 1.6 1.4 1.1 1.6 1.5 One-Bedroom 1.9 1.9 1.6 1.2 1.8 1.8 Two-Bedroom 2.3 2.3 1.8 1.4 2.4 2.1 Three-Bedroom 3.3 3.4 2.6 1.8 3 2.8 Four-Bedroom 3.6 3.8 2.8 2 3.2 3 Source: National Low Income Housing Coalition hftp://www.niihc.org/oor/oor2Ol 1/data.cfm?getstate=on&state=H I Hawari Housing Planning Study,2011: Rental Housing Page 24 0 SMS, Inc. October,2011 1 Fiscal Year 2011 Area Median Income (HUD, 2011). 2 Annual income of 30%of AMI or less is the federal standard for Extremely Low Income households. Does not include HUD-specific adjustments- 3 "Affordable" rents represent the generally accepted standard of spending not more than 30%of gross income on gross housing costs- 4 Fiscal Year 2011 Fair Market Rent(HUD, 2010). 5 American Community Survey 2005-2009 median renter household income, projected to 2010 using HUD's income adjustment factor and through 2011 based on AMIs. 6 Estimated by comparing the percent of renter median household income required to afford the two- bedroom FMR to the percent distribution of renter household income as a percent of the median within the state, as measured using 2009 American Community Survey Public Use Microdata Sample housing file- 7 Based on 2009 BLS data, adjusted using the ratio of renter to overall household income reported in ACS 2005-2009, and projected to April 1, 2011. 50th percentile FMR t Wage data not available Hawaii Housing Planning Study,2011: Rental Housing Page 25 0 SMS, Inc. October,2011 MEASURING RENTAL DATA In the past several years, SMS has become increasingly attentive to the growing number of rental advertisements placed online that were not also published in print media. Because the data for the Rental Housing portion of the HHPS has been based solely on newspaper advertisements, we have been concerned that this method of data collection would, at some point, become untenable. The merger of the Honolulu Advertiser and Star-Bulletin in June 2010 further complicated the rental housing picture by significantly diminishing the number of rental advertisements available for analysis. After extensive analysis of multiple sources of data on Hawaii's rental housing market, SMS has determined that the method of data collection employed for all prior Housing Policy Studies no longer provides an accurate representation of the rental housing market3. The 2011 Rental Housing Report, therefore, incorporates data from all available sources in order to provide the most complete representation of the market. Going forward, SMS will rely on data from the U.S. Census Bureau's Decennial Census, annual American Community Survey (ACS), and American Housing Survey (AHS) to track rental market fluctuations within the State and Counties. Data collected from newspaper and online rental advertisements will continue to be a useful tool in examining the rental market for smaller geographic areas within each County. In addition to the benefits of continuity and comparability with other housing market studies, the revised rental data collection and analysis processes will likely decrease the amount of time and expense involved in this component of the HHPS because the data will be readily available and updated annually. The present study lays the foundation for developing a comprehensive set of time series data that will provide accurate data on past rental housing market performance, enhance understanding of current rental conditions, and support forecasts of future rental housing needs. CHANGES TO METHOD OF RENTAL DATA COLLECTION There has been a change in technology that affects the way in which we measure, and track rents for this report. There has also been a change in consumer and producer behavior which will affect how things are done in the rental market. In turn, these changes will have a notable impact on the way housing planners and advocates for affordable housing approach their work in the future. A simple change in the way available rental units are marketed to potential tenants in the State of Hawaii, moving from newspaper to online advertisements, has necessitated a change in the way rental data will be collected going forward. The figures and discussion below illustrate the reason for this methodological change. For most Hawaii counties, the number of rental advertisements included in calculations of the average asking rent has been steadily declining since mid-2008. Between 2009 and 2010, however, the ad counts drop dramatically (see Figure A-4). 3 Refer to pages 26-32 for additional detailed information Hawaii Housing Planning Study,2011: Rental Housing Page 26 0 SMS, Inc. October,2011 Figure A-4: Number Rental Advertisements Collected, City& County of Honolulu, 2003-2010 County of Honolulu 12,000 10,000 8,000 6,000 —Honolulu Apt 4,000 —Honolulu House Honolulu All 2,000 0 Y'1O03 Y'1o�a Y'LOQh Y'1oQ�o Y'1O0� Y'1o�°u At; YAP County of Hawaii 4,000 3,500 3,000 2,500 2,000 BI Apt — 1,500 BI House —BI All 1,000 500 0 Y2003Y2004Y2005Y2006Y2007Y2008Y2009Y2010 Source: SMS Hawaii Housing Policy Study, 2003, 2006, and 2011 County of Maui 4,500 4,000 3,500 3,000 2,500 Maui Apt 2,000 —Maui House 1,500 —Maui All 1,000 500 0 Y2003 Y2004Y2005 Y2006 Y2007 Y2008 Y2009 Y2010 County of Kauai 800 700 600 500 Kauai Apt 400 —Kauai House 300 —Kauai All 200 100 0 Y2003 Y2004 Y2005 Y2006 Y2007 Y2008 Y2009 Y2010 Hawai'i Housing Planning Study,2011: Rental Housing Page 27 Table A-6. Number of Rental Advertisements Collected Annually, 2003-2010 Honolulu Hawaii Maui Kauai Year Apt House Total Apt House Total Apt House Total Apt House Total 2003 2,478 1,148 3,626 618 1,041 1,659 677 1,459 2,136 91 167 258 2004 5,080 2,392 7,472 616 1,114 1,730 861 2,033 2,894 195 351 546 2005 1,540 883 2,423 581 1,428 2,009 837 2,259 3,096 235 435 670 2006 6,590 3,717 10,307 656 1,570 2,226 386 1,517 1,903 203 428 631 2007 6,924 3,568 10,492 1,101 2,069 3,170 552 1,556 2,108 180 399 579 2008 7,234 3,593 10,827 1,408 2,100 3,508 987 2,462 3,449 247 503 750 2009 7,058 3,197 10,255 844 1,206 2,050 1,112 2,746 3,858 212 435 647 2010 3,237 1,282 4,537 594 764 1,369 447 1,157 1,605 163 208 374 Source: SMS Hawaii Housing Policy Study, 2003 and 2006, Hawaii Information Service, 2011 The trends toward decreasing numbers of ads suggest either decreasing activity in the rental market, decreasing advertisement, or decreasing use of newspapers for advertising. Regardless, declining ad numbers are not sufficient to cause a decline in rental prices. That would take a differential decline in ads for different types of properties, specifically, a relative decline in ads for high-priced properties. Indeed, that is exactly what Hawai'i Information Service (HIS) suggests is occurring. As the housing market tightens and the economy decreases, the cost of rental advertising in newspapers rises". At the same time, units take longer to rent and advertisers must pay more to cover the vacancy period. Higher end properties tend to take disproportionately longer to rent and ad rates may be higher. If an option to newspaper advertising appears, high-end property managers will have greater propensity to take that option. The alternative was online advertising for rental properties, led by popular websites such as Craig's List. The process began in 2005 and has continued through the present. It has its impact in all rental markets. In the 2nd Quarter of 2010, Hawaii lost one of its two major newspapers. The change was relatively abrupt and may have been sufficient to tip the rental advertising market hard toward online advertising. A soon as HIS noticed the precipitous drop in rent ads in Hawaii they began collecting records of Internet advertising. They did not cease collecting newspaper data, but the ads were quickly approaching zero. The impact of all this is readily apparent in Figure A-4. A significant number of rental units have moved to advertising online only. With the new data collection systems in place, SMS expects to be able to adjust the data going forward in order to maintain series continuity where necessary. 4 This statement is obviously a gross over simplification of the complex market forces that have led to rising prices for advertising in local newspapers.The principle, however, is useful. Hawari Housing Planning Study,2011: Rental Housing Page 28 0 SMS, Inc. October,2011 Figure A-5: Number of Rental Advertisements Collected Quarterly, 2010 12,000 Collection of, 10,000 online rental ads began 8,000 —BI All 6,000 Kauai All —Maui All 4,000 Honolulu All State All 2,000 0 20101st 20102nd 20103rd 20104th Quarter Quarter Quarter Quarter Source: SMS Hawai'i Housing Policy Study,2003,2006, and 2011 The gradual change in the way rental advertising is handled in our society began in roughly 2005 and proceeded, we might surmise, slowly until last year. The dramatic events of 2010 are associated with a change in the direction of the rental price data for the State. As evidenced in Figure A-6, the average asking rent rate is no longer following a pattern consistent with market indicators such as the median contract rent provided by the annual American Community Survey and the Fair Market Rent amounts established by HUD. COMPARING RENT DATA SOURCES Figure A-6 brings together the various rent types to illustrate their relationship to one another. The data sources suggest that asking rents rose during the housing boom (2003-2007) and fell thereafter until 2010. Early indications for 2011 suggest that prices have begun to rise again. The shorter series on contract rents suggests that they have risen steadily since mid-boom (2005) and slowed starting in 2008. So, as rents drifted downward from $1,900 a month to $1,750, contract rents maintained their growth rate. After three years asking rents were down to $1,600 a month, at which point the contract rent growth rate began to slow down. Hawari Housing Planning Study,2011: Rental Housing Page 29 0 SMS, Inc. October,2011 Figure A-6: Average Asking, Median Contract and Fair Market Rents, 2000-2011 County of Honolulu County of Maui 52,500 T $2,000 s $1,500 $1,000 $500 $0 —Ave Asking —Median Contract _FMR 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 County of Hawaii $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 Ave Asking —Median Contract —FMR $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 County of Kauai Source: Average asking rent from Hawaii Information Service, 2005-2009 median contract rent from American Community Survey, 2010 from SMS analysis, 2011 from HHPS 2011 Demand Survey data, Fair Market Rent data from the U.S. Department of Housing and Urban Development(HUD)published FMR rents, 2000-2010. Hawai'i Housing Planning Study,2011: Rental Housing Page 30 Table A-7. Average Asking, Median Contract and Fair Market Rents, Counties of Hawai'i, 2000-2011 HONOLULU BI MAUI KAUAI Year ve sing on ac Ave Asking Contract FMR Ave Asking Contract FMR Ave Asking Contract 2000 $752 $914 $553 $775 $716 $1,202 $646 $1,119 2001 $768 $901 $764 $1,185 $1,103 2002 $1,365 $784 $902 $1,058 $765 $1,320 $1,187 $1,216 $1,104 2003 $1,408 $813 $907 $1,162 $769 $1,423 $1,193 $1,298 $1,111 2004 $1,529 $820 $973 $1,254 $782 $1,429 $1,213 $1,422 $1,129 2005 $1,913 $940 $1,216 $1,348 $742 $894 $1,573 $912 $1,243 $1,574 $875 $1,078 2006 $1,862 $1,045 $1,373 $1,368 $804 $944 $1,658 $1,081 $1,284 $1,658 $1,057 $1,108 2007 $1,759 $1,129 $1,457 $1,434 $871 $977 $1,741 $1,163 $1,328 $1,737 $1,033 $1,148 2008 $1,765 $1,227 $1,843 $1,447 $906 $1,115 $1,629 $1,131 $1,423 $1,659 $1,086 $1,196 2009 $1,607 $1,237 $1,825 $1,309 $921 $1,160 $1,389 $1,186 $1,584 $1,428 $1,223 $1,332 2010 $1,653 $1,250 $1,906 $1,178 $936 $1,232 $1,415 1 $1,241 1$1,6821 $1,414 $1,230 $1,414 2011 $1,843 $1,385 $1,904 $1,097 $1,112 $1,280 $1,482 1 $1,201 1$1,7491 $1,445 $1,248 $1,470 Source: Average asking rent from SMS Housing Policy Studies, 2003, 2006 and 2011, Median contract rent from American Community Survey, 2005-2009; Fair Market Rent data from the U.S. Department of Housing and Urban Development(HUD)published FMR rents, 2000-2010. While there is no definitive explanation, SMS and industry experts suggest that advertising for available high-end rental units moved to online advertising earlier than ads for moderately priced units. This is supported by the higher average rent rates for units advertised online. When data collected from online sources5 were analyzed, the average monthly rent amount was consistently higher than for units advertised in print. Exclusion of these more expensive units artificially decreases the median and average rent amounts, and results in trends that run counter to all other market indicators. 5 Online sources include Craigslist.com, HotPads.com, Rentals.com,Apartments.com,and Rentalslllustrated.com. Hawari Housing Planning Study,2011: Rental Housing Page 31 0 SMS, Inc. October,2011 Figure A-7: Average Rent Rates for Newspaper and Online Ads, State of Hawai'i, 2010 $3,500 —Newspaper $3,000 -H—Online $2,500 $2,000 $1,500 $1,000 $500 $0 — T� Studio 1 BR 2 BR 3 BR 4 BR Total Table A-8. Average Rent Rates for Newspaper and Online Ads, State of Hawaii, 2010 Studio 1 BR 2 BR 313R 4 BR Total Newspaper $933 $1,095 $1,544 $2,001 $2,715 $1,527 Online $1,134 $1,400 $1,900 $2,450 $2,900 $1,800 Note.Averages include advertised rents for single family and multi-family dwellings Barring an unexpected change to the definitions used or the method of data collection by either of these studies in the future, ACS, AHS and FMR data will become the foundation of the Rental Housing Report in future iterations of the Hawai'i Housing Policy Study. Hawai'i Housing Planning Study,2011: Rental Housing Page 32 0 SMS, Inc. October,2011 List of Figures Figure B-1. O'ahu Tax Map Key (TMK)Zones, 2011 ................................................................. 35 Figure B-2. County of Maui Tax Map Key (TMK) Zones, 2011 ................................................... 36 Figure B-3. County of Kauai Tax Map Key (TMK) Zones, 2011 ................................................. 37 Figure B-4. County of Hawai'i Tax Map Key (TMK)Zones, 2011 ............................................... 38 Figure C-1. West Hawaii Historical Rents, 1985-2010................................................................ 41 Figure C-2. East Hawaii Historical Rents, 1987-2010................................................................. 41 Figure C-3. Big Island Studio Apartment Rent by Area, 1995-2010........................................... 42 Figure C-4. Big Island One Bedroom Apartment Rent by Area, 1995-2010............................... 42 Figure C-5. Big Island Two Bedroom Apartment Rent by Area, 1995-2010............................... 43 Figure C-6. Big Island Two Bedroom Single Family Dwelling Rent by Area, 1995-2010............ 43 Figure C-7. Big Island Three and Four Bedroom Single Family Dwelling Rent by Area, 1995- 2010............................................................................................................................................. 44 Figure C-8. Maui Historical Rents, 1985-2010............................................................................ 44 Figure C-9. Maui One Bedroom Apartment Rent by Area, 1985-2010....................................... 45 Figure C-10. Maui Two Bedroom Apartment Rent by Area, 1985-2010..................................... 45 Figure C-11. Maui Two Bedroom Single Family Dwelling Rent by Area, 1985-2010.................. 46 Figure C-12. Maui Three and Four Bedroom Single Family Dwelling Rent by Area, 1995-2010 46 Figure C-13. Kauai Historical Rents, 1985-2010 ........................................................................ 47 Figure C-14. Kauai Studio Apartment Rent by Area, 1995-2010................................................ 47 Figure C-15. Kauai One Bedroom Apartment Rent by Area, 1995-2010.................................... 48 Figure C-16. Kauai Two Bedroom Apartment Rent by Area, 1995-2010.................................... 48 Figure C-17. Kauai Two Bedroom Single Family Dwelling Rent by Area, 1995-2010............... 49 Figure C-18. Kauai Three and Four Bedroom Single Family Dwelling Rent by Area, 1995-201049 Figure C-19. Oahu Single Family Average Rent by Area, 1970-2010........................................ 50 Figure C-20. Oahu Studio Apartment Rent by Area, 1990-2010 ................................................ 50 Figure C-21. Honolulu One Bedroom Apartment Rent by Area, 1990-2010............................... 51 Figure C-22. Other O'ahu One Bedroom Apartment Rent by Area, 1990-2010 ......................... 51 Figure C-23. Honolulu Two Bedroom Apartment Rent by Area, 1990-2010............................... 52 Figure C-24. Other O'ahu Two Bedroom Apartment Rent by Area, 1990-2010 ......................... 52 Hawaii Housing Planning Study,2011: Rental Housing Page 33 0 SMS, Inc. October,2011 APPENDIX B - TMK Zone Maps Hawaii Housing Planning Study,2011: Rental Housing Page 34 0 SMS, Inc. October,2011 Figure B-1. O'ahu Tax Map Key (TMK) Zones, 2011 w�t 6 5 7 8 9 (� 4 2 3 Hawaii Housing Planning Study,2011: Rental Housing Page 35 ©SMS, Inc. October, 2011 Figure B-2. County of Maui Tax Map Key (TMK) Zones, 2011 Hawaii Housing Planning Study,2011: Rental Housing Page 36 ©SMS, Inc. October, 2011 Figure B-3. County of Kauai Tax Map Key (TMK) Zones, 2011 w�. 5 4 1 3 2 Hawaii Housing Planning Study,2011: Rental Housing Page 37 ©SMS, Inc. October, 2011 Figure BA County of Hawaii Tax Map Key (TMK) Zones, 2011 N R�E 9 5 6 4 3 7 2 1 8 9 Hawaii Housing Planning Study,2011: Rental Housing Page 38 0 SMS, Inc. October,2011 APPENDIX C - Rent Charts Comparable to Previous Hawaii Housing Policy Studies Hawaii Housing Planning Study,2011: Rental Housing Page 39 ©SMS, Inc. October,2011 METHOD In order to evaluate the condition of Hawaii's rental housing market, a comprehensive data set was constructed to identify current and historical rental availability, rental rates and other trends. For each island, information including the location, rent rate, number of bedrooms and property type was assembled from rental advertisements for each island. A three-period rolling average of rent rate was used in reporting rent data in order to reduce the volatility of the rent data series. Data reported include advertisements published through the end of 2010' Please note that the data presented in this report reflects only market rental rates; no affordable (subsidized) rents have been included except where published in the classified advertisements. Database entries also excluded rentals wanted, vacation rentals, rentals to share, property management, rooms for rent, and all commercial properties. Rental area definitions were created using the standard Tax Map Key (TMK) Zones for each county and the rental databases have been categorized according to these geographic location. Refer to Figures B-1 through B-24 on the following pages for maps detailing the TMK Zone boundaries. Not all areas depicted on the maps have corresponding rental data included in the report due to the extremely limited number of published rental advertisements for these areas. However, data for these areas is included in countywide averages. The O'ahu rental database was collected from the Honolulu Advertiser's mid-month Sunday classified advertisements for rentals of houses, apartments (including both apartment building units and condominium units) and townhouses. For the purposes of this review, the O'ahu rental database was filtered to include advertisements for three- and four-bedroom houses and studio, one-, two-, and three-bedroom apartments. The Neighbor Island rental database was constructed from the mid-month Sunday classified ads from the major newspapers for each island. Sources include the Maui News, West Hawaii Today, the Hawaii Tribune Herald and The Garden Island. The database contains information from advertisements for two-, three-, and four-bedroom houses and studio, one- and two-bedroom apartments. In addition, from the Maui News, studio and one-bedroom houses were categorized together as "cottage" since they constitute a significant part of Maui's rental market. ' . Data from the first half of 2011 was not included because the need to generate moving averages requires a full year of data in order to generate appropriate comparisons. Hawaii Housing Planning Study,2011: Rental Housing Page 40 0 SMS, Inc. October,2011 Figure C-1. West Hawaii Historical Rents, 1985-2010 $2,200 West Hawaii Historical Rents 1&2 Bdrm Apartment $2,000 West Hawaii Historical Rents3&4 Bdrm Single Family o $1,800 Q $1,600 C � $1,400 C $1,200 Y Ul Q $1,000 N O $800 N Q $600 $400 0 0 r M O O N M V 0 O r W O O N M V 0 O r W O O 00 00 00 M 00 M M M M M M M M M M 0 0 0 0 0 0 0 0 0 0 O O O M O O O O O O O O O O O O O O O O O O O O O O Figure C-2. East Hawaii Historical Rents, 1987-2010 $1,500 0 East Hawaii Histo dcal Rents 1&2 Bdrm Apartment t $1,300 East Hawaii Histo dcal Rents 3&4 Bdrm Single Family C 0 Q $1,100 C 0 Of $900 Y N Q $700 N (6 Q $500 $300 Hawaii Housing Planning Study,2011: Rental Housing Page 41 ©SMS, Inc. October,2011 Figure C-3. Big Island Studio Apartment Rent by Area, 1995-2010 $1,200 Konato Keauhou East Hawaii $1,100 Waikoloa —Wainneato Kohala $1,000 Captain Cook to Keauhou $900 $800 $700 $600 $500 $400 $300 Figure C-4. Big Island One Bedroom Apartment Rent by Area, 1995-2010 $1,700 $1,600 E3 Konato Keauhou $1,500 —East Hawaii Waikoloa $1,400 XWaimea to Kohala $1,300 --*--Captain Cook to Kealakekua $1,200 $1,100 $1,000 $900 $800 $700 $600 $500 $400 $300 NN (O (D I- 1- 00 00 01 01 0 0 NN MM V V 00 (D (D rr 0000 MM 00 01 01 01 01 01 01 01 01 01 9 0 0 0 0 0 99999990909090 0 (4 C' (4 C' (4 C' (4 LL L (4 CL (4 CL (4 CL (4 CL (4 CL (4 CL (4 CL (4 CL (4 L (4 L fn fn fn fn U) fn fn fn fn fn fn fn fn fn fn fn Hawaii Housing Planning Study,2011: Rental Housing Page 42 0 SMS, Inc. October,2011 Figure C-5. Big Island Two Bedroom Apartment Rent by Area, 1995-2010 $2,200 9 Konato Keauhou East Hawaii * Waikoloa $1,900 x WaimeatoKohala Captain Cook to Kealakeku $1,600 $1,300 $1,000 $700 $400 N N (O (O r r 0000 M M O O N N M M V 'Ito N (O (O r r o0 00 M Moo m cT m cT m cT mct m tT 00000000 OOOOOOOOOOOO Q Q 0 Q Q Q Q Q Q Q Q Q Q Q Q r Figure C-6. Big Island Two Bedroom Single Family Dwelling Rent by Area, 1995-2010 $.2 400 Konato Keauhou East Hawaii —�Waikoloa $2,200 X Warneato Kohala $2,000 Captain Cook to Kealakekua $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 a�aQ as eQ a eQ at ae at eQ as aQ as eQ at eQ at�Q a�aQ a�aQ at eQ at¢Q a�eQ a�eQ a eQ Hawaii Housing Planning Study,2011: Rental Housing Page 43 ©SMS, Inc. October,2011 Figure C-7. Big Island Three and Four Bedroom Single Family Dwelling Rent by Area, 1995-2010 $3,300 9 Ko na to Keau ho u $3,000 —East Hawaii *Waikoloa *Waimea to Kohala $2,700 --*--Captain Cook to Kealakekua $2,400 $2,100 $1,800 $1,500 $1,200 $900 $600 3 5 6 6 0A, O 'b O O O O � ti ti 3 3 P h h b 6 1 'l P 0 O O O 0 0 0 0 0 0 0 0 9 9 0 0 0 0 0 0 0 0 OQ O O O O O O O O C3%O O n n a�eQ a�eQ a�aQ a aQ a�aQ a�aQ a�aQ a�aQ a�aQ a�aQ a�eQ a�eQ a�eQ a�eQ a�aQ a�aQ Figure C-8. Maui Historical Rents, 1985-2010 $2,400 t 1 & 2 Bdrm Apartment $2,200 3&4 Bdrm Single Family $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 In M r CO M O N M V In M r 00 M O N M V In M r 00 M O 00 00 00 00 00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O O O O O O O O O O O O O O O O O O O O O O O O O r r r r r r r r r r r r r r r N N N N N N N N N N N Hawaii Housing Planning Study,2011: Rental Housing Page 44 0 SMS, Inc. October,2011 Figure C-9. Maui One Bedroom Apartment Rent by Area, 1985-2010 $1,900 $1,800 —Central $1,700 t South $1,600 $1,500 $1,400 $1,300 $1,200 $1,100 $1,000 UFN $900 $800 ACE $700 $600 $500 00 00 0bA 0% (4 O� 00 O� O% (:P NO Figure C-10. Maui Two Bedroom Apartment Rent by Area, 1985-2010 $2,400 —Central $2,200 F South $2,000 West $1,800 $1,600 Nam $1,400 $1,200 - $1,000 $800 $600 L!7 0 0 0 r r` W W O O O O - N N M M ;Zr V 0 0 0 O r` r W W O O O O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Hawaii Housing Planning Study,2011: Rental Housing Page 45 0 SMS, Inc. October,2011 Figure C-11. Maui Two Bedroom Single Family Dwelling Rent by Area, 1985-2010 $2,600 $ —Central 2,400 t South $2,200 U count $2,000 $1,800 $1,600 AR ps� $1,400 l r $1,200 $1,000 $800 $600 L!7 0 0 0 r r 00 00 O O O O N N M M V V 0 0 0 O r r 00 00 O O O O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 !6 W !6 W !6 W !6 W !6 W !6 W !6 W !6 W !6 W !6 W !6 W !6 W !6 � !6 � !6 � !6 � 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) U) U) U) U) U) U) U) U) U) U) U) U) U) U) U) U) Figure C-12. Maui Three and Four Bedroom Single Family Dwelling Rent by Area, 1995-2010 $5,000 +Central $4,500 (South $4,000 U count $3,500 $3,000 $2,500 )NAM I $2,000 $1,500 $1,000 $500 $0 0 0 (0 (0 r r 00 00 M M O O N N M M V V 0 0 (0 (0 r r W 00 M M O O rnrnrnrnrnrnrnrnrnrn00000gogogogogogogog � Hawaii Housing Planning Study,2011: Rental Housing Page 46 0 SMS, Inc. October,2011 Figure C-13. Kauai Historical Rents, 1985-2010 $2,200 $2,000 1 & 2 BdrmApartment $1,800 +3 &4 Bdrm Single Family $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 b b`O b1 b1b bI' 00 0^ O� O�'Off`Op OHO O� O�O�' 00 0^ O On'Ot`Oh Oco OA 0�b 00 O Figure C-14. Kauai Studio Apartment Rent by Area, 1995-2010 $1,500 *Lihue *North Shore $1,300 Wailua - Anahola Poi u - Kalaheo $1,100 $900 -- $700 — $500 � � w $300 `Oh tC'' `01 � � `00 t00 i0^ i0L iO3 tOb `Oh `Ob `01 `d) t00 t^O Hawaii Housing Planning Study,2011: Rental Housing Page 47 0 SMS, Inc. October,2011 Figure C-15. Kauai One Bedroom Apartment Rent by Area, 1995-2010 $1,600 Lihue North Shore $1,400 Wailua - Anahola R Poi u - Kalaheo h $1,200 A $1,000 $800 —— $600 9 � _= $400 In (0 r co O O N M V In (0 r co O O O O O O O O O O O O O O O O O N N N N N N N N N N N N N N (6 (6 Figure C-16. Kauai Two Bedroom Apartment Rent by Area, 1995-2010 $2,100 �Lihue $1,900 North Shore Wailua - Anahola $1,700 �poi u-Kalaheo $1,500 + ±� $1,300 — — — -- $1,100 � - $900 6 — - -- - �iiM ee , $700 $500 rn rn rn o 0 0 0 0 m m m m m m m m Hawaii Housing Planning Study,2011: Rental Housing Page 48 0 SMS, Inc. October,2011 Figure C-17. Kauai Two Bedroom Single Family Dwelling Rent by Area, 1995-2010 $3,000 $2,500 7FPoipu ihue orth Shore $2,000 Wailua - Anahola - Kalaheo $1,500 - — 1tir � ��►'��� • $1,000 - -- y(-- ----- — $500 $0 ' mat �a4 mat �a� mat �a� mat �a� mat �a mat �aI mat �a mat �a Figure C-18. Kauai Three and Four Bedroom Single Family Dwelling Rent by Area, 1995-2010 $3,100 +Lihue North Shore $2,600 Wailua- Anahola Poipu - Kalaheo $2,100 A ------ 1ti�+ - $1,600 $1,100 $600 01 O� O� �O Hawaii Housing Planning Study,2011: Rental Housing Page 49 0 SMS, Inc. October,2011 Figure C-19. Oahu Single Family Average Rent by Area, 1970-2010 $3,500 t Hawaii Kai $3,250 +Makiki/Manna $3,000 Windward Pearl City/Aiea _ $2,750 XCentral/Leeward $2,500 $2,250 --- $2,000 $1,750 — $1,500 — — $1,250 - — -- $1,000 -- $750 P - $500 $250 # \Ib �° �ti4P ° �ba° atia° o° o� o° ono° o �o No No 1° Figure C-20. Oahu Studio Apartment Rent by Area, 1990-2010 $1,350 Downtown $1,250 Honolulu $1,150 Makiki Salt Lake $1,050 Waikiki $950 -- — $850 $750 $650 $550 $450 0 0 0 0 rn rn rn M M M °0 0 0 0 0 0 0 0 0 0 v v v v v v v v v v v v v v v v v v v v 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Hawaii Housing Planning Study,2011: Rental Housing Page 50 0 SMS, Inc. October,2011 Figure C-21. Honolulu One Bedroom Apartment Rent by Area, 1990-2010 $2,000 T* Dow-ntown $1 ,800 alt Lake Waikiki $1 ,600 Honolulu $1 ,400 Makiki - .,e $1 ,200 $1 ,000 - $800 � wk-- -- , $600 O N M V 0 M r CO O O N M V 0 M r CO O O O O O O O O O O O O O O O O O O O O O U U U U U U U U U U U U U U U U U U U U N N N N N N N N N N N N N N N N N N N d) Figure C-22. Other O'ahu One Bedroom Apartment Rent by Area, 1990-2010 $1,650 +Central $1,450 Leeward Pearlridge Windward $1,250 ,d $1,050 $850 __ . _---- r'y $650 $450 O N M V In M r CO O O N M V In M r c0 O O O O O O O O O O O O O O O O O O O O O O U U U U U U U U U U U U U U U U U U U U U N N N N N N N N N N N N N N N N N N N N N D D D D D D D D D D D D D D D D D D D D D Hawaii Housing Planning Study,2011: Rental Housing Page 51 0 SMS, Inc. October,2011 Figure C-23. Honolulu Two Bedroom Apartment Rent by Area, 1990-2010 $2,700 t Waikiki $2,500 --it-Downtown Hawaii Kai $2,300 Honolulu n. . $2,100 Makiki _ Salt Lake • $1,900 - $1,700 , $1,500 $1,300 • - —r $1,100 $900 $700 00 �1 A:�) 00 00 O^ 00 <�) OR Oh Oro O'l Ob O°' NO Figure C-24. Other O'ahu Two Bedroom Apartment Rent by Area, 1990-2010 $1,900 $1,800 6 Central $1,700 tEwaPlain $1,600 Leeward $1,500 Salt Lake $1,400 $1,300 s $1,200 $1,100 . $1,000 - $900 - -- $800 -- , $700 - $600 $500 O N M V In (0 r 00 O O N M V In (0 r 00 O O U U U U U U U U U U U U U U U U U U U U U 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) D D D D D D D D D D D D D D D D D D D D D Hawaii Housing Planning Study,2011: Rental Housing Page 52 0 SMS, Inc. October,2011