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The cost of housing is a function of supply and demand. Demand from investors and nonresidents has driven up the price of residential real estate so that most Hawaii residents cannot afford to buy a home. Rental costs have also increased.
The proposed empty homes tax addresses both supply and demand. To increase supply, the tax provides an incentive for nonresident owners to sell or rent to a Hawaii resident. The tax also serves as a disincentive for investors who are thinking about buying a home or condo unit in Hawaii and using it as a vacation rental.
Hawaii has some of the lowest property taxes in the country. If someone can afford to own a home or condominium that they don’t occupy or rent, that owner can afford to pay higher property taxes. Otherwise the exodus of local residents who can no longer afford to live here will continue.
Jeff Griswold
Kailua
