The Abercrombie-Ige Agenda Isn't Working: Housing Prices Soar, Burdening Family Budgets
News Release from Hawaii Republican Party
HONOLULU (September 10, 2014) - Hawaii families are finding themselves burdened immensely by skyrocketing housing prices after four years of the Abercrombie-Ige policy agenda. Despite Governor Abercrombie and Senator Ige's best efforts, housing costs in Hawaii are squarely among the nation's worst and a prime factor in the soaring cost of living.
"After four years of the Abercrombie-Ige policy agenda, the cost of housing in Hawaii is among the worst in the entire country. As the cost of living continues to climb, it is more clear than ever that Governor Abercrombie and Senator Ige's policies are taking Hawaii in the wrong direction." --Ted Kwong, Hawaii Republican Party Communications Advisor
BACKGROUND:
The Median Price Of A Home In Honolulu Reached An All-Time High In June 2014. “The median price of a single-family home in Honolulu leapt to an all-time high of $700,000 in the month of June, according to new data from the Honolulu Board of Realtors. Meanwhile, the median price of a condo jumped by more than 9 percent compared with June last year, hitting a record $360,000.” (Anita Hofschneider, “Honolulu Median Home Price Reaches a Record $700,000,” Honolulu Civil Beat, 7/7/14)
By A Large Margin, Housing Money Buys The Least In Hawaii. “Last week, an infographic from the Tax Foundation went viral showing the relative value of $100 in each state. As I wrote then: ‘The above data doesn't tell the full story. ... A large portion of the differences in price parity is based on the cost of rent or the comparable mortgage payments.’ I calculated the relative value of housing dollars using data on regional price parities from the Bureau of Economic Analysis. The $100 level is based on the national average; each state's data is then relative to that level. When you include everything, the relative value of $100 in each state varied from $84.60 to $114.74.” (Dan Dzombak, “The Real Value of Housing Money in Each State,” The Motley Fool, 9/3/14)
- “By state, in terms of housing, your dollars go the furthest in Mississippi, where the relative value of $100 is $161.03. Your dollars get you the least in Hawaii, with a relative value of $62.89. That means the same amount of money for housing is worth 150% more in Mississippi than in Hawaii. Even in less extreme cases, the differences can be high.” (Dan Dzombak, “The Real Value of Housing Money in Each State,” The Motley Fool, 9/3/14)
The Federal Government Says Hawaii Has To Spend The Most - 71% More Than The National Average - On Rent. “We spend more on housing. Based on U.S. Department of Housing and Urban Development data, the National Low Income Housing Coalition says the median cost of renting a two-bedroom apartment in Hawaii is $1,671 a month. That’s not just the highest nationally, it is about 71 percent more than the national average of $977.” (Kery Murakami, “Living Hawaii: Why Is the Price of Paradise So High?” Honolulu Civil Beat, 9/4/13)
- “Based on the HUD standard that families shouldn’t spend more than a third of their income on housing, the coalition calculated what hourly wage people around the country would have to earn to afford such an apartment. Hawaii again earned the dubious rank of No. 1. A resident here would have to earn the most: $32.14, compared with a national average of $25.25 per hour.” (Kery Murakami, “Living Hawaii: Why Is the Price of Paradise So High?” Honolulu Civil Beat, 9/4/13)
As A Result, Comfortable Middle-Class Incomes On The Mainland Can Qualify For Public Housing Assistance In Hawaii. “A single person can earn as much as $54,850 and qualify for housing assistance on Oahu. For a family of four, the cut-off is $78,300, according to the Hawaii Public Housing Authority. In most of the country, those would be comfortably middle-class incomes.” (Kery Murakami, “Living Hawaii: Why Is the Price of Paradise So High?” Honolulu Civil Beat, 9/4/13)
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