Hawai‘i Has Authorized 1,527 New Housing Units in 2020October 9, 2020, 8:36 AM HST · Updated October 9, 8:36 AM 0 Comments
A new report shows that an estimated 1,527 new housing units have been authorized in Hawaiʻi in 2020–which equates to 107.5 units for every 100,000 residents.
The porch.com report notes that while home sales and new construction fell sharply during the onset of the pandemic, both have rebounded aggressively, fueled by a combination of low interest rates, increased demand and a growing preference for low-density housing.
According to the report, the lockdowns delayed peak home buying season, creating pent up demand for new homes, compounding a longer-term trend in the housing market of millennials aging and entering their prime home-buying years.
“With this confluence of factors, prospective home buyers face a difficult situation—while low interest rates are lowering the cost of a mortgage, the limited supply of existing homes is creating stiff competition for new homes and raising prices,” according to the report.
The report further states that it will take home builders “years to bridge the gap” between the existing supply of homes for sale and the large number of interested buyers. However, investment in new housing varies significantly across the United States.
Many US states, particularly those in the South and Mountain regions, have been investing heavily in new housing this year despite the pandemic. Overall, Idaho, Utah, South Carolina, and Arizona have permitted the most new housing units per capita, while Texas and Florida have permitted the most units total. Northeastern states like Rhode Island, Connecticut, Pennsylvania, and New York are hardly investing in new homes at all.
Porch analyzed data from the US Census Bureau’s Building Permits Survey. To rank locations, Porch calculated the number of new housing units authorized during the first six months of 2020 per 100,000 residents. Their researchers also included the absolute number of new housing units authorized, the median home price of existing homes, and the estimated value of newly authorized homes.
A summary of data for Hawaiʻi includes the following:
- New housing units authorized (per 100k residents): 107.5
- Total new housing units authorized: 1,527
- Total value of new housing units authorized: $577,332,000
- Median home price (all existing homes): $646,931
In comparison, United States data includes the following:
- New housing units authorized (per 100k residents): 201.2
- Total new housing units authorized: 658,402
- Total value of new housing units authorized: $138,000,000,000
- Median home price (all existing homes): $253,527
For more information, a detailed methodology, and complete results, you can find the original report on Porch’s website: https://porch.com/advice/