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The Big Island has the highest percentage of residents living below the poverty line, at 15.8%. Oahu’s poverty rate is dramatically lower, at 9.3%, while Maui and Kauai have 9.2% and 10% of residents living in poverty, respectively.
On the other end of the income spectrum, 29.9% of residents in Hawai`i earn over $100,000 per year. At the top of Hawaii’s income bracket, approximately 5.5% of residents reportedly earn in excess of $200,000 yearly.
Then take a look at prices for homes, you could buy two or three homes in some areas of the country for the price of one home in Hawaii. Hawaii is also on the bottom of the list for home ownership in the country at aprox 56.7% of the population owns a home.
To come to the conclusion that oahu is turning more and more into a rich mans paradise isn't to far to grasp. Think about it, every third person you see in public is making six figures.
While I am not disagreeing with you that Oahu is becoming more attractive to the rich and less attractive to those who aren't, homeownership rates here are greater than they've ever been. As I stated in another post, real estate is cheaper (i.e. more affordable) today than it has been in 40 of the last 50 years. While that's hard to believe, the statistics don't lie. And that's precisely why the homeownership rate has been increasing steadily over time. Hawaii has always been an expensive place to live but housing is, historically speaking, inexpensive today.
If you have two MA degrees and only make $25-$40K you are either in the social services industry or you aren't very ambitious. Only 28% of residents (over 8 in 10 of these residents don't have 4-year degrees) make less than $40K in Hawaii. 8% make between $40 and $50K. 34% make between $50 and $100K. The remaining 30% make $100K or more. One person in 8 makes more than $150K in Hawaii. One in 18 make over $200K.
We rank #2 in the nation for highest percentage of residents (15%) making $75-$100K. And #3 in the nation for those making $100-$150K (18% or nearly 1 in 5).
That's not my salary, that's the impression I've always had of what I'd have to accept for a salary, if I were to make a move there.
Your additional stats are quite encouraging to make me rethink that though.
That's not my salary, that's the impression I've always had of what I'd have to accept for a salary, if I were to make a move there.
Your additional stats are quite encouraging to make me rethink that though.
I know very few people that make less than $40K and I have a lot of friends without college degrees. Well over half don't have 4-year degrees. While you can live here for less than that, you definitely can't own a home or many material things for that matter. You'll have to be content with enjoying the outdoors, scenery, weather, beaches, etc... which apparently to a lot of people is worth it.
While I am not disagreeing with you that Oahu is becoming more attractive to the rich and less attractive to those who aren't, homeownership rates here are greater than they've ever been. As I stated in another post, real estate is cheaper (i.e. more affordable) today than it has been in 40 of the last 50 years. While that's hard to believe, the statistics don't lie. And that's precisely why the homeownership rate has been increasing steadily over time. Hawaii has always been an expensive place to live but housing is, historically speaking, inexpensive today.
I humbly have to not agree, unless you mean access to loans etc to buy homes to be more affordable? Im not the most educated guy but rents and cost of homes in Hawaii were cheaper back then. Its predicted that in the next 10 to 20 years homes in oahu could reach 1 million asking price on average. Im here to learn but for the sake of conversation purposes we use 40 years ago 1970s.
the cost of a home in hawaii was around 100k, but the big thing was the value of a dollar was about 8x more valueble then today. In 1970s the population was 1/2 it was today. So what am i missing?
I humbly have to not agree, unless you mean access to loans etc to buy homes to be more affordable? Im not the most educated guy but rents and cost of homes in Hawaii were cheaper back then. Its predicted that in the next 10 to 20 years homes in oahu could reach 1 million asking price on average. Im here to learn but for the sake of conversation purposes we use 40 years ago 1970s.
Pg 1 / 2
There are three metrics that determine affordability - income, interest rates (which determine your mortgage payment) and RE selling prices. The standard way banks determine affordability is using the debt to income ratio. Today, you can generally qualify for a mortgage as long as no more than 43% of your pre-tax income goes to paying for your home (including interest, principal, real property tax and insurance).
Back in the day when you were in Hawaii, interest rates were much higher and incomes much lower and this impacted how much home someone could afford.
However, that only tells a part of the story. Homes are not only more affordable today but they are much larger, much stronger, better insulated, built magnitudes better to withstand hurricanes, floods, etc. They have more bathrooms, enclosed garages, better outfitted kitchens and features/amenities that older homes never had.
But most importantly (and this is what most people entirely ignore) is the COST TO BUILD a home in Hawaii is absolutely obscene. Design/engineering/permit/state and city fees cost much more today than in the past. In fact, the dreaded "park dedication" fee did not take effect until the 90's... this added $15-$20K PER UNIT to the cost of a home in Hawaii OVERNIGHT. Sewer/water fee connections have increased 14X (1400%) in 30 years. Road widening costs used to be the responsibility of the city/state. Now if the owner wants to get a permit to rebuild a home, he/she has to pay for ALL improvements to the road/sidewalk/ALL utility infrastructure/drainage/sewer/water/etc even if it's NOT ON THEIR PROPERTY. Live next to a hill? You'll need a certified engineer and geotech to tell you you don't have to build a $300K rockfall fence. If they tell you you do, you are out $30K in engineering costs or cough up the $300K. Home is more than 50 years old? You'll have to certify to the state that it doesn't qualify as "historic". This creates long delays and costs... all of which impacts the cost of a home in Hawaii.
If you bought a piece of land today at a great price, hired an architect and competent contractor to build your home, when you are done with it you could not sell it for more than you spent. What does that tell you? Construction/design/permitting costs have skyrocketed immensely since you last lived here.
Finally, people can say that construction prices need to drop in order for homes to become more affordable. Most contractors only work on 10-15% margins which is absolutely insane when you consider the liability they are exposed to and the risk they take... in Hawaii the contractor is responsible for 10 YEARS for defects known to be caused by negligent construction. You'd have to reduce material, fuel and shipping costs dramatically. Labor rates for carpenters, electricians, plumbers, etc will have to plummet. Insurance rates for said contractors and bond requirements would have to come down tremendously. Unemployment insurance costs would also have to drop a ton. And reduce city and state regulations and fees. Overhaul the ultra-conservative lending policies to developers by local banks. All of those things will never happen... Ever.
Construction costs, BY FAR, have the largest impact on home prices in Hawaii.
Those are some old video's. Doesn't look anything like that anymore. Most of the new Bloomingdale's has outer wall covering, and the base pillars for the new condo's are up.
Read in the paper Foodland is returning to Ala Moana with their largest store. Will be in the new Ewa Wing.
It's going to be a "Foodland Farms," which is a slightly more "upscale" version that's supposed to compete with the Whole Foods Market scheduled to open in Kakaʻako.
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