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The Growing Cost of Place Why Workforce Housing Matters in Hawai`i Presented by Kevin Carney, President of Housing Hawai`i 2010 Regional Forum on Workforce Housing Hosted by the National Association of Realtors and the National Housing Conference 10/12/2010

Kevin Carney

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Bring Workers Home Regional Forum on Workforce Housing--Honolulu, HI--October 12, 2010

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The Growing Cost of Place Why Workforce Housing Matters in Hawai`i

Presented by Kevin Carney, President of Housing Hawai`i

2010 Regional Forum on Workforce HousingHosted by the National Association of Realtors and the

National Housing Conference

10/12/2010

Housing Hawai`i 501(C)3 nonprofit

Formed in 2006

10/12/2010

GoalsPreserve & Increase the number of:

1. Affordable Homes (Single Family/Condo) 2. Affordable Rental Homes

10/12/2010

10/12/2010

“Affordable Housing”A Definition:

Housing is affordable when you pay no more than 30% of your income for

housing, including utilities!

10/12/2010

Area Median Income: Honolulu – Family of Four

$81,700

140%30% 60% 80% 120%

Affordable Housing vs Workforce Housing – Is There a Difference?

Rental Ownership

100%

10/12/2010

Affordable Homeownership2010 AMI Family of Four -- $81,700

“Affordable Housing” for this Family: $2,042 a month

Median Home Sales Price: $600,000

Income Requirement: $145,000

AMI Requirement: 180% AMI

100% AMI Family – Can Qualify for $310,500 Loan

2010 Honolulu Incomes and Ability to Buy $600,000 Median Priced Home

Annual Inco

me Needed

Dental Assi

stant

Secre

tary

Customer S

ervice

Rep

Nurse (L

PN)

Fire Fi

ghte

r

Auto M

echan

ic

Carpente

r

Electr

ician

Police O

fficer

Sec. S

chool T

eacher

$-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000 $145,000

36213 40105 40224 43391 44301 46887 47972 52159 54540 57551

Source: National Housing Conference – Paycheck to Paycheck

10/12/2010

Affordable Rental Homes2010 Fair Market Rent - 2 Bedroom: $1,610

Income Requirement: $64,396 or $31/hr

Hawai’i Renters Average Wage: $12.89/hr

To “Afford” This Apartment: 96 hours a week!

Minimum Wage: $7.25/hr

To “Afford” This Apartment: 171 hours a week!

Affordable Rent for Minimum Wage Earner: $377

2010 Honolulu Hourly Wages vs. Wage to Afford 2 Bedroom Apartment

Needed to afford

2BR

Dental Assi

stant

Secretary

Customer S

ervice Rep

Nurse (L

PN)

Fire Fig

hter

Auto M

echanic

Carpenter

Electricia

n

Police Office

r

Sec. Sch

ool Teach

er $-

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$30.96 $27.67

$17.41

Source: National Housing Conference – Paycheck to Paycheck

10/12/2010

Hawaii’s Housing Cost Challenges:

World Marketplace

Lack of Infrastructure

Limited entitled land

High cost of land

High cost of construction and materials

Limited funding

Political will

State Legislature Acknowledges Housing Crisis

Shortfall: 22,000 Affordable Units for Families Earning Less than 80% AMI

Reach: Housing Crisis Extends to Moderate-Income Families -- 95% of AMI

Barriers: High Cost of Land and the Lack of Infrastructure

10/12/2010

10/12/2010

Housing Hawai`i Efforts:

Advocacy: Development of New Affordable Homes for Purchase and Rent Preservation of Existing Affordable Rental Homes Track Proposed Legislation

Keep the Conversation Alive!

Please join with us in promoting the need for affordable housing in Hawai`i!

www.housinghawaii.org