To hear Gov. Josh Green tell it, the state is making considerable headway to meet the housing needs of its people. Over the past two years, much groundwork has been laid to cut regulatory red tape, sow infrastructure, improve rental laws and invest many millions into funds tappable by developers for housing projects.
Now, Green promised in his State of the State speech Tuesday, all that seeding is starting to bear fruit, with 13,000 new units to be completed this year and 10,000 more next year. It’s all part of a vision for more than 62,000 units to be built over the next decade — 46,000 of them deemed affordable housing — via more than 257 projects by state and county agencies and private developers.
Working with the Legislature, “the most significant housing regulatory and zoning reforms in over 40 years” have occurred, Green said. “Our combined efforts are now paying dividends.”
They must. Hawaii stands at a pivotal moment — where the high cost of living has pushed many kamaaina out. Since 2020, Hawaii’s resident population has dropped consistently each year, with outmigration surpassing growth. And according to the latest Aloha United Way report, housing insecurity is prevalent, with 27% of households statewide worried about being forced to move within a year; that rises to 41% among ALICE (Asset Limited, Income Constrained, Employed) residents.
Scary stuff — revealing the great urgency for stable,
affordable housing. Even before the August 2023 wildfires destroyed nearly 4,000 homes on Maui, there was an estimated shortage of 50,000 housing units statewide. Clearly, the state must remain steadfast to prioritize housing, even if federal policy changes on social-service funding force a fiscal rebalancing.
Not only are people going unhoused, the exodus spurred largely by lack of affordable housing has led to a shortage of teachers and health care workers. For the vitality and very future of Hawaii, this cannot be allowed to continue.
One debated policy change raised the income threshold for housing projects eligible to tap into state funding — up to 140% of area median income (AMI), for instance, instead of the traditional low-income demographic of below 60% of AMI. If the result is a surge in both workforce and low-income housing developments, it’s a welcome one to meet the spectrum of needs for Hawaii’s people.
Other tough obstacles to housing also must be worked on: Cracking down on short-term rentals — many of them illegal — that line property owners’ pockets while driving up housing costs and reduce rental inventory for working families. Also, it’s unfortunate to see the power of the “haves” over the “have-nots” when it comes to neighborhood opposition, in the form of NIMBYism.
The Green administration’s wish list to keep producing new and affordable housing will require consensus from legislators, now vetting the state’s proposed biennium budget. Among the $500 million in housing initiatives requested for the next two years:
>> $250 million for the Rental Housing Revolving Fund, subsidies tapped by developers to build affordable housing.
>> $62 million for University of Hawaii-West Oahu (UHWO) infrastructure development for University Village near the rail. This has much potential and is needed: Skyline is due to open its Phase 2 segment later this year, which will extend rail operations from UHWO to the Middle Street Transit Center, with crucial stops at Aloha Stadium, Pearl Harbor and the Honolulu airport.
>> $68 million to transform Mayor Wright Homes into a mixed-used area that will add more than 2,000 housing units for working families. Like UHWO, this project is well-situated along Skyline’s route — albeit in the frustratingly overdue Phase 3 to Kakaako, which won’t open until 2031. Still, Oahu must finally get going to realize the promise of transit-oriented development, a historic opportunity that cannot be squandered.
As the 60-day Legislature unfolds, big federal fiscal changes loom — but delivering desperately needed housing must remain a top priority. Nimbleness will be necessary, as well as an unwavering commitment to invest in sheltering and sustaining Hawaii’s workforce and lower-
income families.
