Oahu population growth outpacing housing supply

[pj737]

Originally Posted by ChezAloha

As someone whose spouse received BAH in the 70s, 80s and up to the early 90s, I can believe that BAH rates were actually that low. However, service members living in high-cost areas (Hawaii and Japan, for example) used to receive a monthly HOLA allowance on top of their BAH. I know HOLA is no longer provided any more for Japan - you can no longer even bring your family over until you have been assigned on-base housing. I'm assuming at some point they did away with HOLA in Hawaii as well and just upped the housing allowance, which might account for some of the more recent rapid increases. DOD had to play a lot of catch-up as well. Even with HOLA, housing allowances were for the most part inadequate. (Service members still get COLA in Hawaii and other places around the country, but that's supposed to cover the costs of goods and services outside of housing).

BAH during our time in the service was basically flat. The only real increases we saw were when my husband received a promotion, so looking at the last 10-12 years of increases really doesn't tell the whole story either.

I totally agree that current BAH levels are all about incentive and retention - not just to get people to stay in the service, but to get them to stay in a particular location. The military (well, at least the navy) would love for people to stay put where they are longer rather than having to move them every 2-3 years, especially overseas. I am almost flabbergasted by the current pay scales and allowances, but they're where they should be (and should have always been).

I know the bases in Japan upped their housing stock by tearing down many single family/duplex type housing units and building high-rise apartments in their place. I wonder if the same may eventually happen in Hawaii, based on current off-base housing costs?

Thanks, ChezAloha. That makes a lot of sense and explains why BAH has increased at such a significant rate between 2000 and today. Also, thank you for understanding that increases in BAH are a result of increasing retention rates by providing better housing options. Some people oddly don't understand the dynamics of it all. Very closed minded.

[pj737]

Originally Posted by kakers

"median monthly gross residential rent in Honolulu, HI (the Honolulu metro area) was $1,483 in 2012"

I find that very difficult to believe. You are telling me that 2 years ago the median rent was less than $1500? And that is GROSS rent which includes an estimate of utilities. There is just no way those numbers are accurate.

~Katy

I think you have a misunderstanding of "median" and "average/mean". The median per capita income for Honolulu is $30,219. I don't personally know anyone my age that makes less than $30k/year and that speaks for the socioeconomic class and demographic that I can personally relate to. However, 50% of all the people on this island have an income of less than $30K. The median house price is $648,000 but how many decent SFHs can you find in that price range? If you took AVERAGES instead of median figures, the house price would increase to over $840,000. Average rent will also be much higher than median rent. You have to understand that there are many, many inexpensive rentals in Hawaii. Some people pay as little as $1,000/mo for a 2bdrm unit. And they aren't as uncommon as you would think. The averages are what more people can relate with because we, as humans, will focus on the anecdotal evidence provided by the demographic and socioeconomic class we associate with. But median figures paint a more reliable picture as it includes all classes, even those you cannot relate to or associate with.

The Rentjungle depicts AVERAGE rents (as opposed to MEDIAN rents from the other website) that pencil in at $1,496 and $2,161 for 1 bdrm and 2 bdrm units respectively. That is much more accurate and will provide a more real-world figure.