Thursday, November 14, 2019
Hawai'i Free Press

Current Articles | Archives

Friday, July 05, 2019
Harvard: High Housing Costs Caused by 'Regulatory Constraints on Development'
By News Release @ 12:53 PM :: 1577 Views :: Hawaii Statistics, Cost of Living

NEW REPORT SHOWS US HOUSING SUPPLY FALLS FAR SHORT OF WHAT IS NEEDED

News Release from Harvard JCHS, June 25, 2019 

CAMBRIDGE, MA – With the nation’s economy on sound footing and incomes on the rise, the number of people forming households in the United States has finally returned to a more normal pace. Housing production, however, has not. The 2019 State of the Nation’s Housing report from the Harvard Joint Center for Housing Studies documents how the housing shortfall is keeping pressure on house prices and rents, eroding affordability for modest-income households in many markets. The report will be released in a live webcast today at 12 pm ET from the Federal Reserve Bank of Atlanta.

Center researchers found that household growth is now back from post-recession lows, but new home construction remains depressed, with additions to supply barely keeping pace with the number of new households. Several factors may be contributing to the slow construction recovery, including excess supply following the housing boom, which took years to absorb, and persistent labor shortages.

“The most significant factors, however, are rising land prices and regulatory constraints on development,” says Chris Herbert, managing director of the Joint Center for Housing Studies. [Interactive Map] “These constraints, largely imposed at the local level, raise costs and limit the number of homes that can be built in places where demand is highest.” Meanwhile, a large percentage of new housing being built is intended primarily for the higher end of the market, Herbert states. The limited supply of smaller, more affordable homes in the face of rising demand suggests that the rising land costs and the difficult development environment make it unprofitable to build for the middle market.

The report also finds that the number of homeowners rose sharply, even as the ratio of median home price to median household income rose from a low of 3.3 in 2011 to 4.1 in 2018, a sign of deteriorating affordability. But conditions for would-be buyers vary widely across the country, with home values more than five times greater than incomes in roughly one in seven metro areas (primarily on the West Coast) compared with less than three times in about one in three metros (primarily in the Midwest and South). [Interactive Map]

On the renter side, the number of renter households fell for the second consecutive year in 2018, a stark contrast to the increases of the 12 preceding years. Nevertheless, rents are rising at twice the rate of overall inflation.

“The growing presence of higher-income renters has helped keep rental markets stable,” says Daniel McCue, a senior research associate at the Center. “This has maintained demand for new apartments, even as overall rental demand has waned.” At the lower end of the market, though, the number of units renting for under $800 fell by one million in 2017, bringing the total loss from 2011–2017 to four million. [Interactive Map]

Even as the market continues to lose lower-cost rental units, the share of US households paying more than 30 percent of their income for housing declined for the seventh straight year in 2017. [Interactive Map] Much of the progress was among homeowners, though, whose cost-burden rate declined to its lowest level this century. Cost-burden rates for modest-income renter households, however, continue to rise and with burdens affecting households higher up the income scale, the issue of rental affordability is increasingly getting attention at the state and local level.

Looking forward, the report authors predict that millennials and baby boomers will continue to push household growth, spurring demand in the remodeling market and the demand for entry-level homes. Rental growth is expected to be solid as well, with 400,000 additional renter households per year expected between 2018 and 2028. Whether these projections come to pass depends on a number of factors, including economic conditions, housing affordability, and the pace of foreign immigration.

One big question mark is whether the market can supply housing that is within reach of most household incomes.

“To ensure that the market can produce homes that meet the diverse needs of the growing US population, the public, private, and nonprofit sectors must address constraints on the development process,” says Herbert. “And for the millions of families and individuals who struggle to find housing that fits their budget, public efforts will be necessary to close the gap between what they can afford and the cost of producing decent housing.”

The State of the Nation’s Housing 2019 will be released in a live webcast from the
Federal Reserve Bank of Atlanta on Tuesday, June 25 at 12:00 pm Eastern.

Download the full report along with interactive maps and data.

Join the conversation on Twitter with #harvardhousingreport

---30---

Hawaii Statistics from the Report

RESIDENTIAL LAND PRICES IN MANY AREAS HAVE RISEN SHARPLY SINCE 2012

  • Hawaii – 30.4%
  • Kauai – 53.7%
  • Maui – 60.4%
  • Oahu – 49.4%

HOME OWNERSHIP

  • Oahu – 27.5% of housing is affordable to median income households

RENTER BURDEN

Maui

  • Change in units with rents under $800   -50.8%
  • Share of Rentals under $800 (in 2017)   11.0%
  • Change in Low Income Renters   -27.2%

Oahu

  • Change in units with rents under $800  -29.2% 
  • Share of Rentals under $800 (in 2017)   12.2%
  • Change in Low Income Renters  -10.6%  

MANY HOUSEHOLDS BURDENED BY HOUSING COSTS IN 2017

  • Hawaii Median Monthly Housing Costs – $1040
  • Kauai Median Monthly Housing Costs – $1480
  • Maui Median Monthly Housing Costs – $1480
  • Oahu Median Monthly Housing Costs – $1750

HOMELESSNESS

pg 34 -- Rates of homelessness vary dramatically across states. New York is at the top of the list with 47 people experiencing homelessness per 10,000 residents, compared with an average of 14 per 10,000 across all states. At the same time, however, New York has one of the lowest shares of unsheltered homelessness, with less than 5 percent of its total homeless population living outside of shelters. Homelessness rates are also unusually high in Hawaii (46 per 10,000), Oregon (35 per 10,000), and California (33 per 10,000), as are their unsheltered shares (53 percent in Hawaii, 62 percent in Oregon, and nearly 70 percent in California). At the other extreme, Louisiana, Mississippi, and West Virginia all had homelessness rates under 7 per 10,000 in 2018.

COVERAGE:

PBN: Honolulu price-to-income ratio for homebuying 2nd-highest in nation, Harvard study says

 

 

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

808 State Update AM940

ABCDEFG Blog

ACA Signups Hawaii

ACCE

ALEC

Alliance Defending Freedom

Aloha Life Advocates

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

American Mothers of Hawaii

AMVETS-Hawaii

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Audit The Rail

Ballotpedia Hawaii

Better Hawaii 

Blaisdell Memorial Project

Broken Trust 

Build More Hawaiian Homes Working Group

CAFR Hawaii

Castaway Conservative

Children's Alliance Hawaii

Children's Rights Institute

ChinaTownWatch.com

Christian Homeschoolers of Hawaii

Citizens for Recall

Cliff Slater's Second Opinion

Coffee Break

Conservative Forum for Hawaii

CSIS Pacific Forum

DAR Hawaii

DeedySupport.com

DVids Hawaii

E Hana Kakou Kelii Akina

E Māua Ola i Moku o Keawe

Farmers For Choice Hawaii

FIRE

Fix Oahu!

Follow the Money Hawaii

Frank in Hawaii

Front Page Magazine

Frontline: The Fixers

Genetic Literacy Project

Get Off Your Butts!

God, Freedom, America

Grassroot Institute

Habele.org

Hawaii Aganst Assisted Suicide

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crime Victims' Rights

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defending Marriage

Hawaii Defense Foundation

Hawaii Families for Educational Choice

Hawaii Family Advocates

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Firearm Community

Hawaii Fishermen's Alliance

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii March for Life

Hawaii Meth Project

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Right to Life -- Big Island

Hawaii Right to Life -- Oahu

Hawaii Shield Law Coalition

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

Heritage Foundation

HI Coalition Against Legalized Gambling

HIEC.Coop 

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Homeless Crisis

Honolulu Navy League

Honolulu Traffic

Horns of Jericho Blog

House Minority Blog

House Republican Caucus YouTube

HPACC

Hump Day Report

I Vote Hawaii

If Hawaii News

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

Iowa Meets Maui

Jackson v Abercrombie

Jihad Watch

Judgepedia Hawaii

July 4 in Hawaii

Kahle v New Hope

Kakaako Cares

Kau TEA Party

Kauai Co GOP

Keep Hawaii's Heroes

KeyWiki

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Mauna Kea Recreational Users Group

MentalIllnessPolicy.org

Middle East Forum--The Legal Project

Mililani Conservatives for Change

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

Muslim Brotherhood in America

NAMI Hawaii

NARTH

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

National Wind Watch

New Zeal

NFIB Hawaii News

No GMO Means No Aloha

Northwest Economic Policy Seminar

Not Dead Yet, Hawaii

Now What I Really Think

NRA-ILA Hawaii

Oahu Alternative Transport

ObamaCare Abortion Hawaii

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Pacific Aviation Museum

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons 

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

Republican Party -- Hawaii State

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Salvage The Rail

Save the Plastic Bag

School Choice in Hawaii

SenatorFong.com

SIFE Remington

SIFE W. Oahu 

Sink the Jones Act

Smart About Marijuana--Hawaii

St Marianne Cope

State Budget Solutions Hawaii

State Policy Network

Statehood for Guam

Tax Foundation of Hawaii

The Harriet Tubman Agenda

The Long War Journal

The Real Hanabusa

Time Out Honolulu

Truth About Trade & Technology - Hawaii

UCC Truths

Union Members Know Your Rights

US Tax Foundation Hawaii Info

Valor in the Pacific

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT