Hawaii Rentals Highest in the Nation

In a report released recently, Out of Reach 2011, ranked Hawaii #1 in the highest prices of rent in the nation!

“Today more than 38 million households rent their homes, 1.9 million more than in 2007. The current rate of homeownership (66.5%) is now at the lowest level since 1998. And with the foreclosure crisis and recession on the one hand and the aging of the baby boom and the coming of age of the echo boom on the other, the demand for rental housing is only projected to grow. Out of Reach is a side-by-side comparison of wages and rents in every county, Metropolitan Area (MSAs/HMFAs), combined nonmetropolitan area and state in the United States. For each jurisdiction, the report calculates the amount of money a household must earn in order to afford a rental unit in a range of sizes (0, 1, 2, 3, and 4 bedrooms) at the area’s Fair Market Rent (FMR), based on the generally accepted affordability standard of paying no more than 30% of income for housing costs. From these calculations the hourly wage a worker must earn to afford the FMR for a two-bedroom home is derived. This figure is the Housing Wage.

Rental Map

In Hawaii, the Fair Market Rent (FMR) for a two-bedroom apartment is $1,616. In order to afford this level of rent and utilities, without paying more than 30% of income on housing, a household must earn $5,388 monthly or $64,651 annually. Assuming a 40-hour work week, 52 weeks per year, this level of income translates into a Housing Wage of $31.08.

In Hawaii, a minimum wage worker earns an hourly wage of $7.25. In order to afford the FMR for a two-bedroom apartment, a minimum wage earner must work 171 hours per week, 52 weeks per year. Or, a household must include 4.3 minimum wage earner(s) working 40 hours per week year-round in order to make the two bedroom FMR affordable.

In Hawaii, the estimated mean (average) wage for a renter is $13.65 an hour. In order to afford the FMR for a two-bedroom apartment at this wage, a renter must work 91 hours per week, 52 weeks per year. Or, working 40 hours per week year-round, a household must include 2.3 worker(s) earning the mean renter wage in order to make the two-bedroom FMR affordable.

Monthly Supplemental Security Income (SSI) payments for an individual are $674 in Hawaii. If SSI represents an individual’s sole source of income, $202 in monthly rent is affordable, while the FMR for a one-bedroom is $1,339.

A unit is considered affordable if it costs no more than 30% of the renter’s income.

You can view Hawaii’s data here: National Low Income Housing Coalition: Hawaii

Here is what it said about Hawaii County:

In Hawaii County, the Fair Market Rent (FMR) for a two-bedroom apartment is $1,145. In order to afford this level of rent and utilities, without paying more than 30% of income on housing, a household must earn $3,817 monthly or $45,800 annually. Assuming a 40-hour work week, 52 weeks per year, this level of income translates into a Housing Wage of $22.02.

In Hawaii County, a minimum wage worker earns an hourly wage of $7.25. In order to afford the FMR for a two-bedroom apartment, a minimum wage earner must work 121 hours per week, 52 weeks per year. Or, a household must include 3.0 minimum wage earner(s) working 40 hours per week year-round in order to make the two bedroom FMR affordable.

In Hawaii County, the estimated mean (average) wage for a renter is $12.08 an hour. In order to afford the FMR for a two-bedroom apartment at this wage, a renter must work 73 hours per week, 52 weeks per year. Or, working 40 hours per week year-round, a household must include 1.8 worker(s) earning the mean renter wage in order to make the two-bedroom FMR affordable.

Monthly Supplemental Security Income (SSI) payments for an individual are $674 in Hawaii County. If SSI represents an individual’s sole source of income, $202 in monthly rent is affordable, while the FMR for a one-bedroom is $1,020.

A unit is considered affordable if it costs no more than 30% of the renter’s income.

One Response

  1. Thanks for finding this study. It’s always interesting when experts and statistics verify what we on the ground are already painfully aware of, isn’t it?

    But then, we get no sympathy for our housing plight. after all, lucky we live Hawaii!

    :)
    N

Leave a Reply

Your email address will not be published. Required fields are marked *

I do this to keep the spammers away * Time limit is exhausted. Please reload CAPTCHA.