Rising interest rates and a drop in sales have done little to lower average home prices.
Only 1 in 5 households in Hawaii can afford to buy a single-family home — a dramatic drop from just three years ago, according to a grim housing report released by the University of Hawaii on Monday.
In 2021, 44% of Hawaii households could afford the mortgage on a median-priced single-family home. That figure is now 20%. As a result, home sales plummeted last year, hitting a 25-year low. But the slump had little impact on prices.
“We haven’t really seen any drop in prices, but there’s this huge increase in what it costs to buy a house because of interest rates,” said Justin Tyndall, an assistant professor of economics with the University of Hawaii Economic Research Organization and the lead author of the report. “Affordability is as bad as it’s ever been.”
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Hawaii has “both the highest construction costs and highest land costs of any state in the U.S.,” according to the report. However, regulatory costs play a dramatic role in the state’s high condo prices. (Cory Lum/Civil Beat/2022)
High interest rates have had a crippling effect on would-be homeowners in the state by not only making mortgages significantly more unaffordable, but also reducing the number of houses on the market.
A majority of mortgage-holders in the state are paying an interest rate of less than 4%, according to the report, making many homeowners wary of putting their home on the market and trying to purchase something else at a much higher interest rate.
The state’s housing market has also worsened for renters in the last year. Hawaii has the highest median rents in the nation and a majority of renters — 56% — are considered “rent-burdened,” meaning they spend more than 30% of their income on rent.
The Maui fires worsened the state’s housing crisis, causing prices to rise while “the availability of rentals have plummeted,” according to the report.
Vacation Rentals And Out-Of-State Buyers
Short-term vacation rentals make up about 6% of the state’s housing stock, a figure that has grown in recent years but also varies dramatically by island. The number of active short-term rental listings grew 9% statewide between 2022 and 2023. Kauai saw the biggest spike, with a 22% jump in listings.
The number of short-term vacation rentals on Maui has actually increased slightly since the fires, despite the loss of 380 vacation rentals in West Maui and tax incentives for unit owners across the island to convert their units into long-term housing.
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“The policy was supposed to incentivize a bigger shift away from vacation rentals and toward housing locals, but we haven’t really seen that in the aggregate,” Tyndall said.
While short-term vacation listings on Maui plummeted after the fire, they are now 2% higher than they were a year ago.
The percentage of out-of-state property owners varies dramatically by community, (Screenshot/2024)
The report also found that “a significant portion of Hawaii’s property owners” are not residents of the state. People from out of state made up 13% of property owners on Oahu and 32% on Maui. More than half of property owners in Lahaina had an out-of-state mailing address.
On Maui, about 85% of vacation rentals are owned by people from out of state, Tyndall said.
Another big takeaway from the overall data, Tyndall said, is that the state isn’t building enough housing to have any real impact on affordability. The state has significant issues with permitting delays, although some progress has been made in the last year in multiple counties, according to the report.
However, strict limits on where multi-family homes can be constructed, along with steep developer fees and permitting delays contribute to the high costs of condos and “reduce the amount of new housing the state.”
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“While many households have a preference for single-family homes, building high-rise condominiums can provide many more units, allowing vacancies to propagate across the market, and pushing down housing prices everywhere, including for single-family homes,” the report says.
Converting thousands of vacation rentals into long-term rentals — which Maui’s mayor is proposing to do — could have a really significant impact on affordability, Tyndall said.
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At UH Hilo, ʻōlelo Hawaiʻi is not simply a subject taught in classrooms, it is a living language that connects us to this place, to one another, and to the generations who came before us.
This column is by Pelehonuamea Harman, director of Native Hawaiian engagement at the University of Hawaiʻi at Hilo. In her columns, Pele shares Native Hawaiian protocols on the use of ōlelo Hawaiʻi (Hawaiian language), cultural traditions, traditional ways of Indigenous learning, and more. This column is on Mahina ʻOlelo Hawaiʻi (Hawaiian Language Month), celebrated every February to honor the Hawaiian language.Pelehonuamea Harman
Each year, the month of Pepeluali marks Mahina ʻŌlelo Hawaiʻi, a time dedicated to celebrating and uplifting the Hawaiian language. At the University of Hawaiʻi at Hilo, ʻōlelo Hawaiʻi is not simply a subject taught in classrooms, it is a living language that connects us to this place, to one another, and to the generations who came before us.
While Pepeluali gives us a focused moment of celebration, the Hawaiian language should not live only within a single month. ʻŌlelo Hawaiʻi thrives when it is used every day.
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One of the simplest and most meaningful ways to begin is by pronouncing the words we already encounter daily with accuracy and care. Hawaiian is an oral language carried through voice and relationship. When we take the time to say words correctly, we demonstrate respect for the language and for the poʻe (people) who have worked tirelessly to ensure its survival.
Across our own campus, we have opportunities to do this every day.
Let us honor the names of our places by using them fully:
An attendee at celebrations on May 6, 2023, takes a photo of the new Edith Kanakaʻole mural by artist Kamea Hadar. The mural is located at Edith Kanakaʻole Hall, named after beloved educator Aunty Edith, on the campus of UH Hilo. (Photo: UH System News)
Kanakaʻole Hall, not “K-Hall.” (Formally Edith Kanakaʻole Hall, named after our beloved kumu.)
Waiʻōlino, not “CoBE,” for our College of Business and Economics. (Formally Hānau ʻO Waiʻōlino; waiʻōlino literally means sparkling waters, alluding here to bringing forth waters of wellbeing and prosperity.)
These names are not merely labels for buildings. They carry ʻike (knowledge), history, and meaning. Speaking them in their entirety acknowledges the stories and values embedded within them.
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Using ʻōlelo Hawaiʻi does not require fluency. It simply requires willingness. Each of us already knows words we can begin using more intentionally.
Greet one another with aloha.
Express gratitude with mahalo whenever possible.
Small choices like these help normalize Hawaiian language in our daily interactions and strengthen UH Hilo’s identity as a place grounded in Hawaiʻi.
One of the most common questions I am asked is: How do you respond in ʻōlelo Hawaiʻi when someone says “mahalo” to you?
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Here are three simple and appropriate responses:
ʻAʻole pilikia — It’s no problem.
He mea iki — It is just a little thing.
Noʻu ka hauʻoli — The pleasure is mine.
There is no single correct answer. What matters most is participating in the exchange and allowing the language to live through conversation.
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Aerial view of the UH Hilo campus with Hilo Bay in the distance. UH Hilo’s commitment to Native Hawaiian success and place-based education calls on all of us to help create an environment where ʻōlelo Hawaiʻi is visible, audible, and welcomed. (Archive photo)
UH Hilo holds a unique and important role as Hawaiʻi Island’s university. Our commitment to Native Hawaiian success and place-based education calls on all of us to help create an environment where ʻōlelo Hawaiʻi is visible, audible, and welcomed.
You do not need to wait until you feel ready. You do not need to know many words. The language grows stronger each time it is spoken.
So during Mahina ʻŌlelo Hawaiʻi and throughout the entire year I encourage the UH Hilo ʻohana to:
Use the Hawaiian words you already know.
Pronounce names and places with intention and care.
Greet others with aloha.
Share mahalo often.
Because when we use ʻōlelo Hawaiʻi, we are doing more than speaking words, we are helping to perpetuate and uplift the native language of our home.
E ola ka ʻōlelo Hawaiʻi. Let the Hawaiian language live.
Hawaii Rainbow Warriors Tread Rosenthal, Trevell Jordan and Louis Sakanoko put up a triple block against BYU Cougars Trevor Herget during Wednesday’s NCAA men’s volleyball match at the Bankoh Arena at Stan Sheriff Center.
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Kainoa Wade came on strong to lead another balanced Hawaii attack with 16 kills and the third-ranked Rainbow Warriors responded to a rare set loss in a big way to defeat No. 6 Brigham Young 27-25, 23-25, 25-17, 25-18 tonight.
A Bankoh Arena at Stan Sheriff Center crowd of 4,800, who showed up for a match scheduled just three weeks ago as a late addition to the schedule, saw Hawaii (13-1) drop the second set despite hitting .538.
UH had full command of the rest of the match and finished the night hitting .460 as a team. Louis Sakanoko added 15 kills, six digs and three aces and Adrien Roure had 14 kills in 24 swings.
Middle Travell Jordan posted a season-high seven kills in 11 swings with four blocks and Ofeck Hazan, who came into the match to start the third set, had four kills and two blocks.
Trent Moser had 18 kills to lead the Cougars (13-3), whose previous two losses came in five sets against No. 4 UC Irvine.
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UH’s loss in the second set was just its sixth of the season and third in its 13 wins. Hawaii has won 10 matches in a row.
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The two teams will play again on Friday night at 7.
