Hawai‘i Housing Planning Study 2016

The Hawai‘i Housing Planning Study (HHPS) series began in 1992. The studies have been conducted as comprehensive assessments of housing markets in Hawai‘i. Results covering all four of Hawai‘i’s counties have been presented in a set of reports summarizing market conditions. Since 1997, HHPS has included a housing forecast to support housing planning. Over the years, HHPS studies have investigated a rotating list of housing issues.

Some issues have remained part of the study and some have been replaced with issues of greater interest. In 2016, HHPS includes the influence of access to public transportation and/or mass transit on preferred housing location, special finance options for homebuyers, a new viewpoint on homelessness, the relationship between tourism and housing, and housing for special needs groups.

IV Housing Issues Section E: Housing and Native Hawaiians

In terms of affordability, Hawaii Housing Finance Development Corporation
provides guidelines as to the sales prices that are considered affordable to families
based on their income (expressed as a percent AMI). While DHHL is expanding the
number of vacant lots offered to beneficiaries, the department continues to work with
developers on a more limited basis. In the most recent offering conducted for lots in
Waimanalo in the fall of 2016, the price for a 3 bedroom 2 bath turnkey home was
$285,345. This is well under the Honolulu County Affordable Sales Price Guideline of
$400,400 for a family of four in Honolulu at 80 percent of AMl.

There were about 462,876 households in Hawai‘i in 2016. Of those, about 73,437 (15.9%) were Native Hawaiian households.103 Approximately 60 percent of Native Hawaiian households lived in the County of Honolulu and 21 percent resided in Hawai‘i County. Maui County was home to 14 percent of Native Hawaiian households and the remaining 5 percent lived on Kaua‘i.

In eight of out ten Native Hawaiian households, the head of household had lived in Hawai‘i all their life. This compared to just 36 percent in non-Native Hawaiian households. Native Hawaiian households were more likely than non- Native Hawaiian households to include multiple families (47% v. 32%) and much less likely to be single member households (13% v. 26%). The median household income among Native Hawaiian households in 2015 was $59,316. The median household income among non-Native Hawaiians was 23 percent higher at $73,129. So Native Hawaiian households have lower median incomes supporting a greater number of household members than non-Native Hawaiian households.

Nearly three-quarters of Native Hawaiian households lived in a single-family dwelling (73.6%) versus 61 percent of non-Native Hawaiians. An additional 24 percent lived in multi-family dwellings such as townhomes, duplexes, condominiums or apartments. Native Hawaiian households were far less likely than non-Native Hawaiian households to live in condominiums (3.8% v. 12.8%).

Over half (54%) of all Native Hawaiian households owned their current residence. This was slightly lower than in 2011 (57%) but is consistent with the overall decline in homeownership. Homeownership among Native Hawaiian households varied somewhat by county, with those living in Maui County having the highest rate of homeownership (66.4%) and those in Honolulu being the least likely to own their home (49.1%). Sixty percent of Native Hawaiian households in Hawai‘i County and 59 percent of those on Kaua‘i owned their current residence. The median monthly mortgage payment made by Native Hawaiian households was $1,689, versus $1,973 for non-Hawaiian households. Native Hawaiian households were also less likely than other households to have paid off the mortgage on their current residence (19.1% v. 30.9%).

The percentage of Native Hawaiian and non- Native Hawaiian households renting their current residence was approximately equal (39.3% v. 37.4%). The median monthly rent paid by Native Hawaiian households ($1,352) was also very similar to that of non-Native Hawaiian households ($1,391). Consistent with the findings on household income, Native Hawaiian households were more likely than non- Native Hawaiian households to be living in public housing (19.6% v. 12.8%). They were also more likely to be recipients of Section 8 rental assistance (13.1% v. 5.9%). Roughly 9,500 Native Hawaiian households fell into one of these two assistance categories.

Eleven percent of Native Hawaiian households surveyed were living on Hawaiian Homestead Land (7,843 households). Among these households, one-third were also on the wait list to receive a DHHL award (2,623 households). An additional 13,569 Native Hawaiian households who did not live on Hawaiian Homestead Land were also on the wait list for a DHHL award. The average household size among Native Hawaiian households was notably larger, 3.63 persons, than among non-Native Hawaiian households (2.62 persons). Native Hawaiian households were slightly more likely than other households to be crowded (10.9% v. 10.4%) and much more likely to be doubled up (24.8% v. 9.6%). Similarly, a notably larger percentage of Native Hawaiian households than non-Native Hawaiian households included hidden homeless persons (14.1% v. 4.2%).

In addition, the Demand Survey indicated that 22.4 percent of Native Hawaiian households would be considered at risk for homelessness. Among non-Hawaiian households the comparable figure was 20.6 percent. These households reported they would become homeless if they lost their primary source of income for more than three months. Hawaiian households held many fewer hidden homeless persons than non-Hawaiian households. Demand survey data show that 4.2 percent of Hawaiian households included at least one person who was residing there because they had insufficient resources to acquire their own home (hidden homeless). The comparable figure for non-Hawaiian households was 14.1 percent.

The Housing Demand Survey included an estimated 608 Native Hawaiian households (0.8%) who are currently homeless. When asked where they stayed last night, 39 percent of those who provided a response indicated that they slept outside or in a car and 27 percent stayed with friends or family members for the night. When asked how soon they planned to move to a different home, 53 percent of Native Hawaiian households indicated that they would probably never move (vs. 42% of non- Native Hawaiian households). Thirty percent reported that they plan to move within the next five years, with an additional six percent planning to move in six to ten years.

When they move, Native Hawaiian households were most likely to remain on the same island (69%) and only 9 percent would relocate to another island in the State. Eleven percent of these Native Hawaiian households, however, planned to leave Hawai‘i when they move. Among those planning to leave the State, 37 percent mentioned housing as a reason for their decision.
When they move, 46 percent of Native Hawaiian households expected to purchase their next home. The majority of these prospective buyers would prefer a single-family home (81%) with three (45%) or four (33%) bedrooms and two (69%) or three (19%) bathrooms.

On average, Native Hawaiian households planning to buy their next home had $24,440 available for the down payment. This was less than half the amount non-Hawaiian households reported having available for a down payment ($59,225). A larger percentage of Native Hawaiian (8.5%) than non- Native Hawaiian households (4.2%) reported that they had no funds available for a down payment. Hawaiian households planning to purchase their next home could afford to make a median monthly mortgage payment of $1,680, while non- Native Hawaiian households can afford to pay much higher monthly housing payments ($2,643).

Among Native Hawaiian households not planning to buy their next home, more than 8 out of 10 indicated that it was simply too expensive to purchase a unit in Hawai‘i. Like buyers, many households planning to rent would prefer a single-family home (47%) with two (34%) or three (46%) bedrooms and one (49%) or two (43%) bathrooms. The median monthly payment affordable for Native Hawaiian households that plan to rent their next home was $1,350 (vs. $1,377 for non-Hawaiian households).

Finally, we have prepared a table of needed units for Native Hawaiian households (Table 49). Of the 24,551 housing units needed to accommodate Hawai‘i’s households between 2016 and 2020, approximately 4,051 will be needed by Native Hawaiian households. The majority of these needed units were for Native Hawaiian households in the County of Honolulu (62%). Far fewer units would be needed for Native Hawaiian households in Hawai‘i County (19%), Maui County (14%), and Kaua‘i County (5%).

Two-thirds of the 4,051 units would be needed to accommodate Native Hawaiian households that earned 80 percent or less of the HUD AMI (2,697 units). Less than 8 percent of the needed units would be required to house Native Hawaiian households earning more than 180 percent of AMI annually. Across the State, units needed to house Native Hawaiians were almost evenly divided between ownership (46%) and rental units (54%). Among the counties, slight differences were identified. Hawai‘i County had the highest demand for ownership units among Native Hawaiian households (61%), followed by households currently living on Kaua‘i (52%). The demand for rental units was higher than for ownership units in Maui (51%) and Honolulu (60%) counties.

Statewide, of the units needed to accommodate Native Hawaiian households, demand for single- family dwellings was roughly 70 percent (2,600 units). Again, the demand for single-family versus multi-family units varied by county. Of needed units on Maui and Kaua‘i, single-family homes were in highest demand (76% and 83%, respectively). More than three-quarters of the units for Hawai‘i County were single-family dwellings. For Native Hawaiian households in Honolulu, however, only 54 percent were single- family units.