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I hate to say this but the only people we can blame for the overcrowding population is us, especially in Oahu. I know i mentioned this before, but one great population control measure we had in the past on Hawai'i was its unique culture and living there was like living in a foreign country. Alot of people moved because they couldn't adapt and couldn't get used to not living on the mainland.
That all changed when a majority of people from the mainland wantted there starbucks and big box stores. So what has happened now is we have made it more comfortable to stay by eliminating the culture shock, thus driving up the population, the demand for housing, the cost of living and changes in lifestyles. Now the only population control measure is cost of living or prices. Which means eventually the only people who will have the privilege of living in Hawai'i will be the rich, unless we run out of water.
Now if we had left things alone? We would prob wouldn't have the issues today with population etc. jmo
I hate to say this but the only people we can blame for the overcrowding population is us, especially in Oahu. I know i mentioned this before, but one great population control measure we had in the past on Hawai'i was its unique culture and living there was like living in a foreign country. Alot of people moved because they couldn't adapt and couldn't get used to not living on the mainland.
That all changed when a majority of people from the mainland wantted there starbucks and big box stores. So what has happened now is we have made it more comfortable to stay by eliminating the culture shock, thus driving up the population, the demand for housing, the cost of living and changes in lifestyles. Now the only population control measure is cost of living or prices. Which means eventually the only people who will have the privilege of living in Hawai'i will be the rich, unless we run out of water.
Now if we had left things alone? We would prob wouldn't have the issues today with population etc. jmo
Honestly I don't think it would have made a difference. I think the only thing that could have changed things over history would have been a nuclear fallout from testing similar to what happened in Micronesia or something like it that would have had long-lasting negative impacts on inhabitants' health. The relative safety (compared to foreign countries), warm climate, beautiful weather, picturesque scenery (which we haven't completely screwed up YET), beaches and attractive/health-conscious people will ALWAYS draw people here. Unless us locals were literally HOSTILE toward visitors and foreigners, nothing would have changed. Now this is just my personal opinion; I'm not here to argue. I think we all have valid points.
I don't know anything about the rental market but thought I would remind you of the "Rule of 72" for calculating interest rates and doubling.
Simply, if you want to know how long it takes rent to double at 6% annual increase you divide 72 by 6, and the result is 12 years.
Conversely, if you feel your real estate investment has doubled in value in 9 years and want to know what percentage annual rate that represents then you divide 72 by 9, and the answer is that it takes an appreciation rate of 8% annually to achieve that result.
You real estate investors surely knew this so its just a reminder for others.
Since no one took my suggestion to take current rents and regress them to actual prior rents I'll offer up some math that supports 6% annual increases in rent all the way back to 1978 in Waikiki and Diamond head area. I was investing and renting properties all during this time frame.
I would start with a 2014 rent of $1800 which would be an average rent for a one bedroom in the areas I mentioned. Regressing them by 6% would mean a 1978 rent of $195. That was pretty much market at the time. If you were to believe that rents only increased 3% then that same rent in 1978 would be $600. That is ridiculous to anyone that was in the market at that time.
Since no one took my suggestion to take current rents and regress them to actual prior rents I'll offer up some math that supports 6% annual increases in rent all the way back to 1978 in Waikiki and Diamond head area. I was investing and renting properties all during this time frame.
I would start with a 2014 rent of $1800 which would be an average rent for a one bedroom in the areas I mentioned. Regressing them by 6% would mean a 1978 rent of $195. That was pretty much market at the time. If you were to believe that rents only increased 3% then that same rent in 1978 would be $600. That is ridiculous to anyone that was in the market at that time.
You still arguing your 6% long-term annual rental increases? Anyone that is paying 6% increases every year over several decades needs to move out and find a new place. Their landlord is (politely put) a greedy douche (moderators - this is NOT directed at anyone specific). If you've been personally raising your rents on your own tenants at that rate, I bet you have an insanely high tenant turnover and vacancy rate.
BTW, I am arguing a 3.2% inflation rate on another forum. Apparently to one person it should be about 2%. Go pick a fight with him
You still arguing your 6% long-term annual rental increases? Anyone that is paying 6% increases every year over several decades needs to move out and find a new place. Their landlord is (politely put) a greedy douche (moderators - this is NOT directed at anyone specific). If you've been personally raising your rents on your own tenants at that rate, I bet you have an insanely high tenant turnover and vacancy rate.
BTW, I am arguing a 3.2% inflation rate on another forum. Apparently to one person it should be about 2%. Go pick a fight with him
Not arguing, just stating FACTS. Can you provide a $600 1978 one bedroom rental in Honolulu? I'm waiting for that. And yes, the point is that if you are going to be in Honolulu long term you will be priced out of the market if your income cannot keep up with market rents. Greedy for collecting market rents? No wonder you've done so poorly as a landlord. But hey I'm a smart landlord and know that I can keep my rents slightly under market and keep my long term tenants or replace them at market when they've become priced out (by the market).
Please DON"T confuse inflation rate with rent growth.
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