Destroying Paradise

In the past decade or so that I have been visiting Hawaii on a regular basis two things stand out which endanger Hawaii not only for those of us who are visitors to the islands, but more importantly for the people who have made Hawaii their home for the majority of, if not their entire lives.

Vehicle traffic has become intolerable

Hawaii's infrastructure is unable to handle the demands of vehicle traffic during almost every hour of the day. On O'ahu the H1 and H2 highways are a complete bottleneck from well before sunrise until sunset. On Maui, Highway 30, the Honoapiilani Highway is frequently backed up from the tunnel to Ka'anapali.

The cost of housing has become out of the reach of most island residents as well as most potential future residents.
The median price for a family home is $550,000 on O'ahu and almost $700,000 on Maui, up over 30% in the last ten years. To better appreciate these numbers, when I was on O'ahu recently I heard a woman tell that she and her husband just finalized the purchase of a 3 bedroom, 1 1/2 bath "fixer-upper." There were 13 other bids. The final price she paid was $650,000.

While apparently separate issues, these two items are actually quite intertwined.

During my visit I scheduled a snorkel cruise from the Waianae Boat Harbor on O'ahu's leeward (west) side. I left my lodging in Waikiki at 5:00 a.m. for the 90-minute drive. As I drove west on H1 I noted that traffic coming east on H1 from the leeward side was already bumper-to-bumper. It remained that way all the way back past Pearl Harbor.

Another day, I drove to the North Shore at around 2:00 p.m. and found myself in heavy traffic on H1 west onto H2 north until we reached the Miilani exit.

What has happened over the last decade is that housing costs in and around Honolulu have soared to levels untouchable by most island residents. Statistics show that most of these properties are being purchased by wealthy individuals from the mainland, often by residents of California seeking to escape that state's economic woes. Many of these new homebuyers are independently wealthy or retired individuals who will add little to Hawaii's economy or society other than as consumers. This same pattern holds true on Maui and to a lesser degree on the other islands.

Local residents, especially first time home buyers are forced to seek what little affordable housing exists in areas distant from their workplaces in Honolulu or Waikiki. Many are compelled to buy less desirable and often poorer quality homes on the leeward side or in central O'ahu. Many simply cannot afford any housing at all and decide to move to the mainland. Others pursue even worse solutions. Drive past any beach on leeward O'ahu at sunrise and notice how many families are living in tents on the beach. You will even see school buses picking up children at these tent villages as part of the regular routes.

Possible Solutions

Solving these problems of traffic and affordable housing will not be easy. They may even be impossible at this late date. Here are some possible solutions.
O'ahu is in desperate need of a high-speed transit system, additional bus routes and highway improvements to convey residents from outlying areas into Honolulu and Waikiki. This has been discussed for many years and may finally be moving forward. The drive to build a new mass-transit system, including a rail system, on O'ahu got a boost with a bill recently passed by the State Legislature that allows counties to add up to a half of a percentage point surcharge to the state’s 4 percent general excise tax. The proceeds of the tax surcharge will go toward transit projects.
Car and vanpools need to be made financially attractive to riders. Higher taxes need to be applied to the state's relatively low car rental costs to discourage so many visitors from renting cars for the full time they are in the islands. Most resort areas have numerous car rental agencies that will rent cars on a daily basis when needed.

A minimum one-year residency requirement should be imposed on any individual(s) seeking to purchase a home in the islands. This requirement would be waived for former residents seeking to return to the islands.

A tax structure should be established to encourage the sale of homes to Hawaii residents. A high property transfer tax should be imposed on both the buyer and seller when a property is being sold to a non-resident. Tax breaks should be available to Hawaii residents and non-residents selling property to other Hawaii inhabitants.

Traffic issues can potentially be improved. It's doubtful that without a total collapse in the economy that the current housing costs can be driven down, but they must be stabilized. Unless steps are taken soon in both areas, we will likely finally see Paradise Destroyed.


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