Rising real estate prices are forcing many Hawaii locals out of the housing market and forcing many of them to move to the mainland

Rising real estate prices are forcing many Hawaii locals out of the housing market and forcing many of them to move to the mainland. This shift in population patterns breaks up families and also causes cultural degradation, which are some of the negative impacts of Hawaii locals being priced out of their own home housing market. 

According to a recent article by Civil Beat, the real estate industry in Hawaii is shifting into overdrive, with low-interest rates enticing both Hawaii residents and people from out of state to buy 1. The demand for quality rental property is only increasing, and high demand and high prices are encouraging investors to sell 1. The frenzy is fueling seller incomes, realtor commissions, and tax coffers, but it sometimes means renters are collateral damage as they are forced to find a new home 1. According to data from Apartment List, Hawaii rents statewide are increasing faster than the national average, although Honolulu rents have managed to stay mostly flat 1.

The median price for single-family homes rose to a record $1,160,000 in January 2022, according to Maui Now 2. The Maui real estate market started the new year off with the median price for single-family homes rising to a record $1,160,000 – the previous high was set in June 2021 at $1,105,000 2. According to Redfin, the median sale price of homes in Maui County is $1.2M, up 34.3% since last year 3.

The unaffordability crisis in Hawaii has led to a population decline and grown so acute it has sparked widespread concern that many of Hawaii’s children won’t be able to afford to live in their homeland as adults 4. The limited land availability drives up property prices, making homeownership a distant dream for many 5. The dominance of tourism-focused industries leads to an imbalance in the economy, with jobs often being low-paying and lacking stability 5. The median home price in Hawaii reached $750,700 in September 2023, marking a 7.2% increase compared to the previous year 6. The median price of a single-family home topped $1 million in most areas of Hawaii during the coronavirus pandemic and has declined only modestly since 4. The state has the fourth-highest per capita rate of homelessness in the nation after California, Vermont, and Oregon 4.

The negative impacts of being priced out of the local housing market in Hawaii are significant. Firstly, the unaffordability crisis is forcing many Hawaii locals out of the housing market and forcing many of them to move to the mainland, breaking up families and causing cultural degradation 4. Secondly, the unaffordability crisis is leading to a population decline, which is a significant concern for the state’s future 4. Thirdly, the unaffordability crisis is leading to a rise in homelessness 4. Lastly, the unaffordability crisis is leading to a rise in rental prices 1.

 

Learn more: