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The cost of living in Hawaii can really only be compared to living in the major desirable cities in the US. San Diego beach towns, Orange county, San Fran, NY, etc...Not only that, but property price is only part of the equation. Food, electricity, gas, and everything else cost more. It takes some sacrafice or careful planning to make it in Hawaii.
My parent's house in Kailua is valued at about the same price for a comparable home in Newport Beach or Del Mar CA. Their home is a 3 bed, two bath, with two living rooms, on a 10,000 sqft lot. Appraised at 1.1 mil. Built in 1955. Haha.
I know you like to say that because you are in Houston, but the CPI surveys say that Houston is not in the same league costwise as the other cities mentioned, not in any regard. The overall CPI for Houston is 80 (with 100 being average across the country) while Honolulu is 188, or 135% more expensive. If you have a $50, 000 income in Houston, you'd have to make $117, 562 to enjoy the same standard of living in Honolulu. But then there is the "double whammy" that the $50,000 job in Houston typically pays only $35-40,000 in Honolulu.
Actually, they mean quite a lot. They allow comparing the cost of living in various cities on a rational, rather than an emotional or impressionistic basis. Apples to apples, so to speak. And being average values, they're closest to what most people actually spend. And being standardized, they allow you to make whatever adjustments you need to make to accommodate whatever is different about your lifestyle from the average.
But it isn't just that housing is cheaper and apartment rents are cheaper (and the places are bigger), it's that every other single spending category on the CPI survey is cheaper in Houston, cheaper even than the national average. Food is much cheaper. Restaurants are cheaper. Electricity is less than a third of Honolulu's rates. Transportation is cheaper. Healthcare is cheaper. Gasoline is cheaper. Everything is cheaper in Houston, and by significant amounts, compared to Honolulu. Apples to apples.
But it's not apples to apples at all, that's my point. It's apples to pineapples. You're comparing a city without many undesireable neighborhoods to a city that is mostly undesireable with a few nice pockets.
Of course gas is cheaper in Houston, but you also have to commute much further. You also use much more electricity, and may even eat out more because you have less free time with all the commuting. Yes food is more expensive. It is what it is-- 80% of food is shipped in.
And yes the pay is much lower in Hawaii, which is what my post was about-- the problem is pay not COL.
The cost of living in Hawaii can really only be compared to living in the major desirable cities in the US. San Diego beach towns, Orange county, San Fran, NY, etc...Not only that, but property price is only part of the equation. Food, electricity, gas, and everything else cost more. It takes some sacrafice or careful planning to make it in Hawaii.
Actually, that's not entirely correct. The cost of living on the Big Island is substantially lower than the more desirable areas in California. For example, the overall CPI for Pāhoa is 109, while Manhattan Beach, California has an overall CPI of 280. Surprisingly, the cost of living in some of the "undesirable" areas of California is higher than Pāhoa. Compton, California (best known for "gangsta rap" and "drive-by shootings") has an overall CPI of 114. Thus, to state that "the cost of living in Hawaiʻi can really only be compared to living in the major desirable cities in the U.S" is somewhat misleading.
Quote:
Originally Posted by Pyramidsurf
My parent's house in Kailua is valued at about the same price for a comparable home in Newport Beach or Del Mar CA. Their home is a 3 bed, two bath, with two living rooms, on a 10,000 sqft lot. Appraised at 1.1 mil. Built in 1955. Haha.
That $1.1 million can purchase two fairly-new houses in Hilo on half-acre lots or three fairly-new houses in Puna on one-acre lots.
Actually, that's not entirely correct. The cost of living on the Big Island is substantially lower than the more desirable areas in California. For example, the overall CPI for Pāhoa is 109, while Manhattan Beach, California has an overall CPI of 280. Surprisingly, the cost of living in some of the "undesirable" areas of California is higher than Pāhoa. Compton, California (best known for "gangsta rap" and "drive-by shootings") has an overall CPI of 114. Thus, to state that "the cost of living in Hawaiʻi can really only be compared to living in the major desirable cities in the U.S" is somewhat misleading.
When I meant Hawaii, I was referring to Honolulu. But, yes, you're correct.
So we all agree the cost of living is high in Hawai'i because of low wages. So what is the solution? Is it really an issue that business are taxed to death? Or is it some are just taking advantage of the aloha and making a ton of profit by not paying there employees a liveable wage? Or is it both? Lets be honest and the hell with party lines ok?
Oh and mahalo for your thought promoting post guys.
So we all agree the cost of living is high in Hawai'i because of low wages. So what is the solution? Is it really an issue that business are taxed to death? Or is it some are just taking advantage of the aloha and making a ton of profit by not paying there employees a liveable wage? Or is it both? Lets be honest and the hell with party lines ok?
Oh and mahalo for your thought promoting post guys.
I honestly don't think there is a solution, HBH, sorry to say. Employers in Hawaii have a captive audience. The only way a profession can command a decent wage here is for there to be a shortage of skilled employees in a given area or with the help of a very strong union.
Otherwise, grab the paddle because you're up crap's creek.
And even with professions that are in demand, if the going rate is junk you have no choice but to accept junk, as those before you have. Junk wages set precedents and there is no bucking those precedents, IME. There simply is no place to go here. If you don't like your wages you know where the airport is.
So we all agree the cost of living is high in Hawai'i because of low wages. So what is the solution? Is it really an issue that business are taxed to death? Or is it some are just taking advantage of the aloha and making a ton of profit by not paying there employees a liveable wage? Or is it both? Lets be honest and the hell with party lines ok?
Oh and mahalo for your thought promoting post guys.
Wages are not low because of a business conspiracy theory.
The cost of business is very high - not just taxes. Think basic things like electricity - cost of land, etc.
I honestly don't think there is a solution, HBH, sorry to say. Employers in Hawaii have a captive audience. The only way a profession can command a decent wage here is for there to be a shortage of skilled employees in a given area or with the help of a very strong union.
Otherwise, grab the paddle because you're up crap's creek.
And even with professions that are in demand, if the going rate is junk you have no choice but to accept junk, as those before you have. Junk wages set precedents and there is no bucking those precedents, IME. There simply is no place to go here. If you don't like your wages you know where the airport is.
Mahalo PaliPatty for your post and your honest opinion.
So we all agree the cost of living is high in Hawai'i because of low wages. So what is the solution? Is it really an issue that business are taxed to death? Or is it some are just taking advantage of the aloha and making a ton of profit by not paying there employees a liveable wage? Or is it both? Lets be honest and the hell with party lines ok?
Oh and mahalo for your thought promoting post guys.
The cost of living is high because of the supply chains coming to the islands combined with a low supply and high demand for real estate. Low pay is part of the problem but it is not the what is causing the huge cost of living.
If wages went up, housing prices would also go up. More demand and purchasing power will raise the price. More people can buy into the market.
The low wages is a result of the lack of industry and professional jobs.
Plus, when you compare cities in the mainland, there are commuter suburbs. If you're willing to commute, you can significantly lower your cost of living. Lots of people build equity in the outskirts until they have enough to buy expensive homes closer to the city. Hawaii doesn't have that option. It's expensive everywhere.
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