Island renters don't need to be reminded, but just for the record, Hawaii has among the lowest percentages of owner-occupied homes in the country, according to the U.S. Census Bureau. Hawaii near bottom
in rate of homeownershipBy Pat Omandam
pomandam@starbulletin.comThe bureau yesterday released its latest Census 2000 data on national housing characteristics that show just 56.5 percent of Hawaii households are in owner-occupied homes. That is up 18.1 percentage points from 1990, but still second-lowest in the country behind New York, where only 53 percent own their homes.
"That doesn't surprise me," said Wayne Richardson, a Kauai real estate broker and a principal instructor at the Hawaii Institute of Real Estate.
"We know that our marketplace has a higher barrier to entry because of the cost of living and the cost of housing," he said.
The report, part of a series that analyzes Census 2000 data, highlights changes in housing characteristics between 1990 and 2000 from regions to counties and large cities.
Nationally, two out of every three householders have fulfilled the "American dream" by becoming homeowners. The national average of owner-occupied homes last year was 66.2 percent, or about 69.8 million people, an increase of 13.3 percentage points from 1990.
West Virginia (75.2 percent) and Minnesota (74.6 percent) had the highest rate of owner-occupied homes. There were 115.9 million housing units in the United States last year.
Jeanne Woodward, co-author of the census report, said Hawaii isn't a typical state when it comes to homeownership. She said the cost of living, the high price of Hawaii homes, a tourist economy, large military housing stock and seasonal residents all contribute to the low ranking.
"I think if you look at the demographics of Hawaii, many times you don't find as many of the most typical types of homeowning-type households," Woodward said.
For example, Hawaii is among the top 10 states with the highest percentage of seasonal, recreational or occasional-use homes, such as vacation homes and time-share units. These homes were the reason Hawaii has a higher-than-average home vacancy rate at 12.4 percent compared to the national average of 9 percent.
Overall, the report said there were 403,240 occupied housing units in Hawaii last year, of which 227,830 or 56.5 percent were owner-occupied. The total number of homes in Hawaii rose to 460,542 last year from 389,810 in 1990.
Those figures tie in with a September census report that said Hawaii had the nation's highest rate of extended households. Factors in that ranking were the high housing prices and large immigrant populations that forced multigenerational families under one roof.
The federal government will use the housing data, which it has collected since 1890, to gauge federal housing programs, such as Section 8 low-income housing. Information on vacant units will help federal and local agencies evaluate housing markets.
The report also showed about four out of five married couples nationwide owned their homes last year.
Meanwhile, Richardson said that once you become a homeowner, you should hold on to your property over the long term because it will be one of the best investments you can make.
Housing Characteristics 2000 (PDF -- 471K)