Question: Government officials use the terms “affordable housing” and “workforce housing” when describing segments of Hawaii’s housing sector that need to be addressed. What is the difference between the two?
Answer: They are essentially the same thing. “Affordable housing” is a technical term defined by the Department of Housing and Urban Development as housing that costs no more than 30 percent of a household’s monthly income. “Workforce housing” refers to affordable housing for those whose incomes are insufficient to purchase quality housing in reasonable proximity to their workplaces.
Q: How would you characterize the supply of this type of housing in Hawaii?
A: Be it “affordable” or “workforce,” the main problem that Hawaii’s leaders are wisely trying to address is that there is a definite and, some could argue, dire need for housing across the state. We couldn’t agree more.
Projections for Oahu alone show that over 40,000 homes are needed to meet long-term demand. Not only do we need more homes, but we need more homes that working families can actually afford. On Oahu the median single-family home costs upwards of $650,000, while the median annual household income is about $75,000. Does this 9-to-1 ratio make sense? Absolutely not.
Q: Is this a market segment that D.R. Horton-Schuler Homes has pursued?
A: At D.R. Horton-Schuler Homes we’re doing our part to make more quality homes — market-rate, workforce and affordable — available to local families. During our 40 years we’ve built nearly 12,000 homes statewide, and we currently have 11 communities under construction on Oahu, Maui and the Big Isle where residents can buy or rent homes at a range of prices.
We’re specifically building many of these units for local families that earn a total of between $40,000 to $100,000 annually. Homeownership can significantly and positively impact their personal balance sheets over time through the equity the home value creates. For some it’s life-changing.
But more homes are needed. At the recent lottery for an affordable rental project in East Kapolei, 886 individuals applied for 120 units. This is a deeply troubling reminder of why we must come together as a community to address a severe housing shortage.
Q: As an island, Oahu has a finite amount of space that can be developed for housing. Do you think more emphasis should be placed on vertical development in the urban core to accommodate population growth?
A: The short answer is we can’t. There are limitations to how much additional growth Honolulu’s infrastructure can service before the required investment to upsize them render incremental growth infeasible. Tear up Kapiolani’s sewer line again? Increase capacity at land-constrained Sand Island sewer plant? Take property to widen roadways through Makiki? I would guess the condos to be sold would have to be priced more than double today’s already high prices to cover these costs. Not likely.
Q: What other options can urban planners pursue?
A: This is precisely the reason the plans for the second city of Kapolei were conceived. Urban planners decades ago saw the severe challenges one hub would cause, and embarked on the long journey to distribute jobs, schools, housing, business, health care and all else that makes a city between the two. To support all this, the government has invested hundreds of millions of additional dollars in the last five years alone on infrastructure in the Ewa growth corridor. D.R. Horton is also committed to this plan. Few have invested more capital behind it.
And we agree wholeheartedly that we must place a greater emphasis on designing denser development that allows us to accommodate our growing population and simultaneously preserve land by staying within the urban growth boundary established by the county.
Q: Can densities be increased in the outlying areas to accommodate the expected population increase on Oahu?
A: In fact, we’re currently building several higher-density communities, such as Mehana at Kapolei, that are designed to create a desirable, mixed-use lifestyle in a more urban setting and promote wise land-use planning. However, development needs to be more than just taller or denser … it also needs to be well-placed, smart and sustainable development, too.
Q: How does the planned Ho‘opili development fit into that scenario?
A: Ho‘opili represents the final piece of the plan to transform the Ewa plain and Kapolei region into a true secondary employment center. Ho‘opili will provide residents of West Oahu services and jobs in an area close to where they live so they are not forced to drive into downtown Honolulu.
Ho‘opili is also planned in an environmentally sustainable way to enhance residents’ lifestyles by allowing them to produce their own energy, grow their own food and take advantage of multiple transportation opportunities from walking and biking to rail.
In short, Ho‘opili represents a much-needed economic engine for our state’s economy. But, we also see it as a model for the kind of thoughtful, environmentally sustainable stewardship development Hawaii deserves.
