Honolulu Civil Beat · Honolulu, HI
Honolulu Affordable Housing Program Creating Far Fewer Units Than Planned
A Honolulu program meant to boost the development of affordable rental housing is falling short of its goals, according to a new report from University of Hawaiʻi economists. Bill 7, enacted in 2019, offered Honolulu developers incentives to keep units affordable to moderate-income households. The law was intended to ease housing costs in a city that is increasingly unaffordable. A report by the UH Economic Research Organization, or UHERO, found that as of September, only seven out of 85 projects have been completed since the program began — amounting to only 224 out of 2,280 units that applied for a permit since 2019. The original goal of the program was to complete 500 units per year. The UHERO report notes development has been made harder since 2019 because of persistently high interest rates and construction costs, the latter of which increased by 30% since the program began. Permitting has also been slow.
