Surprise! Report
says it’s costly
to live in Hawaii

An isle household spends
12 percent more than average

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By Russ Lynch
rlynch@starbulletin.com

Hawaii residents spend more for the same goods and services than most of their counterparts on the mainland, according a new federal report that reinforces what most in the islands already know -- you pay a premium for living in Hawaii.

The average household on Oahu spent $41,972 a year in 1999-2000, about 12 percent more than the national average, according to the consumer spending patterns report from the Bureau of Labor Statistics, part of the U.S. Department of Labor.

Stanley P. Stephenson, San Francisco-based regional director of the BLS, said Oahu households spent more than the national average in most of the major categories. Housing was the leader, he said.

Oahu families spend 34 percent of their income for housing, 15.6 percent more than the national average. But Oahu housing costs were below the Western leader, Los Angeles, where 37 percent of household income went into shelter.

The average Oahu household had an income of $51,906 before taxes, not leaving a whole lot to spare after expenses.

"Spending on education was also notably higher than the national expenditure, at 43.1 percent above the norm," the report said.

Honolulu, recognized as the whole of Oahu, had some quirks compared to the national picture, the report said.

Transportation was the second biggest local cost, eating up 13.8 percent of the household budget, but below the national average cost of 19.2 percent, probably because of shorter travel distances.

One of the wrinkles was that Oahu families put aside less of their budget than others to buy new cars -- 26.9 percent of the transportation budget here versus 46.6 percent in the western states overall. But Oahu households spent more for gasoline despite shorter travel distances. Oahu residents have 1.6 vehicles per household, less than the national average of 1.9.

Food costs in Hawaii were about the same as those elsewhere, eating up 13.7 percent of household expenses, compared to a national average of 13.5 percent.

Household expenditures nationally were $37,622 in the most-recent survey period, about $4,300 lower than Oahu's.

Oahu households spent an average of $906 on education, 43.1 percent more than the national average of $633.

The survey, which was started in 1980, is done by a combination of household diaries kept by some consumers and household interviews.