HONOLULU (HawaiiNewsNow) – A new Aloha United Way report released today shows 1 in 3 Hawaii households considered moving away over the past year. Should the trend continue, it would have a devastating impact on our economy.
Hawaii’s high cost of living and lack of affordable housing mean more than half a million residents are barely scraping by.
That’s one of the findings from the 2024 State of ALICE in Hawaii report, which looks at the struggles of Asset Limited, Income Constrained, Employed households, known as ALICE.
First the good news: fewer Hawaii households are living in poverty — down to 12% versus 14% in 2022. ALICE households remained the same at 29%.
Advocates attribute the slight drop to government programs and increased minimum wages, but also more ALICE families are leaving the islands.
“180,000 people right now are considering leaving the state of Hawaii, from our workforce, from our younger families, our Hawaiian families, and that is something that we are deeply concerned about at Aloha United Way and of course, Bank of Hawaii and Hawaii Community Foundation.” said Suzanne Skjold, COO of Aloha United Way.
These working poor make too much to qualify for government aid and live paycheck to paycheck. Many are on the brink of financial crisis.
“This is absolutely critical, because affordability and just economic well being in our state is not where we need it to be,” said Peter Ho, Bank of Hawaii CEO.
So who is ALICE? They’re likely to be women or have children.
58% of native Hawaiians and 52% of Filipinos live under the ALICE threshold.
You’re more likely to be ALICE if you live on the neighbor islands. Maui is especially vulnerable, especially since the Lahaina fires.
“The people that are leaving hawaii are the people that can afford to leave their workforce and the people our engine. And if this continues, we’re going to have this hollow community where our engine is is just not there, right? And you’re gonna have very, very poor people, and we’re gonna have very, very wealthy,” said Micah Kane, President/CEO of Hawaii Community Foundation.
Advocates hope the report compels policymakers, businesses and community leaders to work together to reverse the trend.
“Employers will never be able to elevate wages and meet the cost of living requirements of this place,” Kane said. “Unless we come up with a host of very disruptive policies that drive down the cost of living, these people that are striking are going to leave.”
To fill gaps in services, Aloha United Way and other nonprofits are helping ALICE families access financial stability, affordable housing and higher paying jobs.
Honolulu Mayor Rick Blangiardi said he plans to lobby for ALICE-focused funding during this legislative session.
“We need to own this, all of us, and so from that standpoint this data becomes the argument you put on the table when you say we have to change,” Blangiardi said.
Some ways to ease the burden on ALICE families include tax credits, safety net programs, support for caregivers, mental health resources, debt reduction programs and financial incentives.
Read the full 2024 ALICE Report here.
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