HONOLULU (AP) — Experts say Hawaii is dealing with a major housing shortage and many people could find themselves priced out if nothing is done.
The state is estimated to need 65,000 to 80,000 new units by 2025 to keep up with demand, reported HawaiiNewsNow. Experts met to discuss the issue at a housing summit in Iwilei on Tuesday.
If Hawaii’s housing stock isn’t increased, “We’ll continue to see increasing median household prices which will continue to essentially squeeze out individual — especially local residents — from being able to afford a home,” said Luis Salaveria, director of the state Department of Business, Economic Development & Tourism.
The region lacks everything from affordable rentals to high-end luxury homes, participants said.
An important part of the solution is less regulation and more infrastructure improvements, according to experts.
Economists said the housing shortage is not new but has become more acute. Home prices have increased dramatically, with single-family homes costing a median of $750,000 in September.
“If we actually built enough houses to satisfy growth in population and existing shortfall, it would add 1 percent to our total jobs, 1 percent to our total income over the whole time period, so every year we’d have 1 percent more jobs than we would otherwise,” said Carl Bonham, executive director of the University of Hawaii Economic Research Organization. “It’s by no means a small issue.”