Surprisingly, Honolulu
fares well in costs survey

Despite soaring home and gasoline prices, the Honolulu metro area ranked favorably compared with other major U.S. cities in a study on housing and transportation costs released yesterday by two Washington, D.C., nonprofits.

The study, based on federal labor data, found that Honolulu ranked 17th among major cities when measuring transportation costs as a percentage of household expenditures. That was lower than several cities typically thought to have considerably lower costs of living, including St. Louis, Atlanta and Cleveland.

The study was conducted by the Center For Neighborhood Technology and the Surface Transportation Policy Project, whose mission is "to ensure safer communities and smarter transportation choices that enhance the economy, improve public health, promote social equity and protect the environment."

The study reported that in 2003, the average Honolulu household spent $8,023 on transportation, or 18 percent of total household spending. When housing costs were factored in, Honolulu residents spent 52.1 percent of their total household allowance on transportation and housing, ranking the metro area 19th among 28 cities selected by the group.

"I would have thought you'd be higher, just based on your costs," said Kevin McCarty, senior director of the Surface Transportation Policy Project. But he said average transportation costs in Honolulu were lower because 16 percent of residents were found to travel to work by a method other than a personal car.

Also, McCarty acknowledged that the study failed to account for a recent spike in housing prices.

Paul Brewbaker, chief economist with Bank of Hawaii, said there was a "kernel of truth" in the report's transportation component, but he said the results might be distorted by Honolulu's location on an island where commuting distances are short compared with many metro areas on the mainland.

"I'm not going to denounce that or accept it at face value," Brewbaker said.