The state government of Hawaii estimates that an additional 50,156 units need to be delivered by 2025 to meet the additional demand generated by the strong population and household growth.
Due to the increase in short-term rentals, limited land, and strict zoning laws, new developments are expected to slow from previous periods until 2030, further increasing the severity of the housing shortage.
The total housing growth rate is slowing. Between 2003 and 2007, Hawai‘i added 31,639 housing units to its total. Between 2007 and 2011, 14,895 were added. Between 2011 and 2014, 7,468 units were added to total housing units and 8,028 units were added between 2014 and 2017.
In response to Honolulu’s severe high cost of living, limited land availability, and rising housing prices, the city is working with developers and investors to create innovative solutions and new developments that meet the demand for affordable housing. Through the Bill 7 program, the government offers incentives, such as tax credits and reduced permit fees, to encourage the development of affordable housing.
Investors and developers can collaborate with the government to create innovative solutions and new developments. Despite the challenges, the crisis presents a significant opportunity for growth and development in the city's real estate market.
Lam Capital LLC has an experienced team positioned to navigate through the complex permitting process in Hawaii to deliver affordable housing to the large population that needs it in the undersupplied Honolulu market. We can also achieve reasonable investment returns for those who love Hawaii and believe in our mission of helping to address a public crisis in Honolulu that will last for many generations.
Lam Capital LLC specializes in new construction of multifamily properties on the island of Oahu. We specifically target properties compliant with Honolulu’s affordable housing legislation known as “Bill 7.” At Lam Capital LLC, we are passionate about Hawaii and its geographic and logistical importance on the world’s economic stage. We believe affordable housing on Oahu is critical to preserving the future of Hawaii.
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