Honolulu Growth Projected Slow!
June 9th, 2009 categories: For Buyers, For Sellers, The Market
Pacific Business News is reporting the following.
“The Honolulu metro area is expected to grow 3.6 percent from its 2005 population of 899,673 to a 2025 population of 932,587, an increase of 32,914 residents, according to the report.”
CLICK HERE TO READ THE PBN
At first this does not seem like a great deal of growth, in fact, per the article it places Honolulu 201st out of the top 250 metro areas for growth. This rate of growth is good for number of reasons.
1. Core Honolulu has no significant land area in which to add houses. The significant growth in housing will come from new condominiums. This means that some of the congestion brought on by higher growth rates should be avoided.
2. Since the growth in housing inventory is limited, newcomers will add to the demand for existing houses and, therefore, I believe Honolulu will see above average appreciation in our existing housing stock. In other words, if you now own you will be happy in 2025 that you do. If you don’t own, then the sooner you buy the better.
3. Pressure on demand and prices in core Honolulu will drive demand for the more affordable housing located in west-Oahu. Even with prices down now, I expect to see these values firm and move up over time.
4. If these statistics are correct, then I would expect the quality of life we now enjoy on Oahu to remain very similar. When 3.6% is divided by 20, this equates to a .18% annual growth rate, a very small increase indeed. This is good because our infrastructure has been maxed out and probably could not take much more pressure.
In summary, some growth is good. New people, ideas, customs and blood have always helped Hawaii become stronger. As for real estate, I believe it means that an investment in a Honolulu home or condo will be a good place to be.
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If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.
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