(IMOA) Imagine Pacific Original Article
Housing... A Fantasy in Paradise
By James E. Faumuina, MBA, MPA
Editor Imagine Pacific Pulse
8/09/2023
The cost of living in Hawaii is perennially one of the highest in comparison to the national average. This high cost of living can be attributed to various factors, but the foremost cause is housing. According to the most recent income statistics from the US Census Bureau, the median household income in Hawaii is $88,005(1) based on 2021 inflation-adjusted dollars. Though it is a significant amount of money, it is not sufficient to remedy the cost of housing. Despite having a higher income compared to the national average, many residents still struggle to find affordable housing options within their budget. The relatively high housing costs in Hawaii create a significant financial burden for households, even with an income that is above the national median.
A report titled “ALICE:
A Study of Financial Hardship in Hawaii (2)”
found a family of four in Hawaii needed a household income of more than $72,000(3), to
afford basics like food, clothing, transportation, health care, and shelter. It
identified families with income below this amount as “asset limited, income
constrained, employed,” or ALICE, and an estimated 48% of people in Hawaii were
living below the threshold. This situation leads to some residents being
compelled to share their housing with other families in order to meet the financial
demands of subsistence.
Housing challenges are the largest burden for residents and
have a profound impact on the well-being and economic stability of residents in
Hawaii. Affordability and overcrowding persist, making it increasingly
difficult for individuals and families to secure adequate housing. The
disparity between high housing costs and income levels contributes to the
housing crisis faced by many residents, exacerbating the already challenging
economic landscape.
The proposed rule on Fair
Lending, Fair Housing, and Equitable Housing Finance(4) Plans by the Federal Housing Finance Agency (FHFA) exemplifies policy progress
aimed at addressing the housing challenges that affect all states including
Hawaii. This rule has garnered support from organizations such as Prosperity
Now(5),
a nonprofit economic advocacy entity, as they believe it will play a pivotal
role in narrowing the racial wealth divide and fostering equitable housing
opportunities.
The primary objective of this proposed rule is to formalize
fair lending practices and bolster the oversight functions of the FHFA. It
advocates for the Banks to adhere to a framework that promotes equitable
housing finance. The letter underscores the critical importance of creating an
equitable housing ecosystem that addresses the needs of low-income families and
marginalized communities. As the state looks at the locus of control internally
with Governor
Green's new housing initiatives(6),
in tandem new housing rules could be just in time assistance needed in order to
get his plans over the finish line.
Addressing this crisis requires comprehensive efforts to
increase affordable housing options, improve income levels, and promote
economic opportunities for residents of Hawaii. It will be crucial to implement
policies and programs that alleviate the burden of housing costs and foster a
more equitable housing ecosystem. By prioritizing affordable housing
initiatives and investing in the economic advancement of its residents, steps
can be taken to mitigate the hardships caused by the high cost of living and
create a more sustainable and inclusive community. Regardless, it goes without
saying that something needs to be done now, as prices continue to rise and the reality
of home for many in Hawaii is becoming more and more fantasy in paradise.
James is the owner of Imagine Pacific Enterprises and the Editor of Imagine Pacific Pulse (IMPULSE). He is a retired Lt Col, Hawaii Air National Guard. Former medical administrator, planner, program manager, and operations officer. Graduated from the USAF Air War College and is a graduate student at the University of Hawaii studying Disabilities Studies and Diversity. He can be contacted at jamesefa@hawaii.edu.
Keywords: #AffordableHousing, #HousingCrisis, #FHFA, #InclusiveLiving #CostOfLiving, #HawaiiHousing,#IMOA, #FantasyInParadise,
References:
- Income
By Zip Code. (n.d.). Hawaii Income by Zip Code. Retrieved from https://www.incomebyzipcode.com/hawaii
- United
Way. (2017). United Way ALICE Report - Hawaii.
- Civil
Beat. (2020, January). Report: Two-thirds of Hawaii Residents Struggle
Financially. Retrieved from https://www.civilbeat.org/2020/01/report-two-thirds-of-hawaii-residents-struggle-financially/
- Federal
Housing Finance Agency. (2023, June 26). Fair Lending, Fair Housing, and
Equitable Housing Finance Plans. 12 CFR Part 1293, RIN 2590-AB29. Notice
of proposed rulemaking.
- Prosperity
Now. (2023, June 26). Letter to Clinton Jones, General Counsel, Federal
Housing Finance Agency. Retrieved from https://prosperitynow.org/sites/default/files/PN%20FHFA%20Sign%20On%20Letter.pdf
- Hawaii
Public Radio. (2022, December 5). Governor Green Commits to Housing
Initiatives and Regressive Tax Cutting.
