The US Census showed a large interstate migration from July 2021 until July 2022. While some states saw significant gains, such as Florida with 1.9%, Hawaii was at the opposite end of that spectrum. Hawaii lost .5% of its population during the year, although some states, like New York, lost even more. People moved to lower-cost places, which spells big trouble for Hawaii tourism that relies on these salaried and hourly workers.
Why did Hawaii lose its population last year?
In a word, it’s simple, the cost of living is too high. Hawaii has some of the highest costs of living anywhere. We see it living here; you experience it traveling here. The high cost of housing, in particular, as it has risen tremendously, helped create a severe travel labor shortage. It has become so serious in the way it is impacting travel businesses.
Some local businesses have taken to housing their employees and become unintentional landlords. If not, employees have no place they can afford and would otherwise leave Hawaii. Or their business would fold.
Hawaii travel has long used both migrant labor and those who attempt to move to Hawaii. That’s long provided a beneficial supplement to Hawaii’s workforce, especially for jobs in the tourism industry.
The trend towards unaffordability for Hawaii workers was already looming.
Even before Covid, we could see this coming. It hasn’t been unusual for a travel industry worker in Hawaii to work up to three different jobs and then be in shared housing to afford a place to stay. This has been an evolving problem for decades. Editor Rob recalls visiting a friend who was paying more than $2,000 per month to live in someone’s garage.
The new governor and legislators repeatedly say that more affordable housing for residents is a priority even as prices continue to rise. Increasing supply is a key factor, but that won’t come easily. And as new housing units are needed, the cost of building housing, including materials, is extraordinary.
Recently Maui’s Na Hale O Maui housing nonprofit also said that Hawaii has “the most regulations and hoops that you have to jump through to provide housing.” Currently, the building of affordable housing is extremely slow. Construction rates are less than 10% of what they were 50 years ago when housing was far more accessible.
Rents from $2,000 per month if you can only find them.
Even then, it is extremely hard to find accommodation. Supply is virtually nonexistent, while there is incredible demand, creating a condition where hospitality workers can’t afford to live here.
I Certainly don’t advocate what I have seen and heard. Renting or Leasing an apartment, 3 bedrooms, and 14 adults plus some children living in it. Others that are doing this to save money. Hopefully Hawaii is keeping this in check, New York California and other states don’t. The strain on the Budget is consuming every bit of money that comes in, earmarked or not. Hawaii is in terrible debt and getting deeper. Something will happen if not corrected. Housing needs will not be met. Bond issues won’t have the desired effect.
We were willing to convert our garage into a living space for my son n grandson to live in but constructing it from Hawaii greedy contractors went from $5000 to construct to now over $12 000 while still waiting on city to approve our plans for construction after almost 2Years!?! That to us is bs for locals not to be fairly dealt with to make affordable living area! Give us a reliable local fully licensed contractor who can do our remodel without having to get a loan and can build from architecte to finish n we will do it!??
Visiting Hawai’i is a privilege and a joy. The customer service workers are fabulous and deserve affordable housing. Other tourism destinations also face this conundrum and there has to be an answer – Maybe places like Santa Fe, Jackson Hole and other tourism destinations need to come together with ideas that don’t involve blame so much as collaboration.
We have been prostituting our land to outside investors who don’t even live here, while allowing the market to set prices that locals cannot compete with outside money. Sure the Govt likes all those tax dollars while there is no provision for locals to even be a first time buyer competing with investors of multiple properties buying and selling food producing potential land who care less aboyt the sustainability of local economy. This is short term thinking chasing money without long term community building.
States across the USA are instill laws restricting who can purchase land/property based off of their originating country. Maryland just instituted a law that says that Chinese citizens cannot purchase property in Maryland beginning in 2024. It is not unheard of for this to happen and Hawaii is well within their rights to do this as well.
Hmmmm… I’ve heard it said that “there is no right to have a vacation in Hawaii” If it’s to expensive, well that’s just life.
Does that apply to those trying to Live in Hawaii?
Just curious.
Workers are needed in Hawaii, thus helping them afford to live there supports the system. Without the workers, you can’t support an economy. Specifically, without workers in the service industry, you don’t have tourism, and right now that’s what’s propping up Hawaii’s economy. Thus the discussion here since it’s a catch 22. If the workers can’t afford to live there and leave, then you don’t have people to work in the restaurants, hotels, etc. that tourists need/want.
If it’s not fun, don’t do it.
Whiners complainers people who want something done…those are the ones
Who kill aloha
My comment back to the “Get rid of all the tourists” is what is Hawaii going to produce to replace it? Back pre-Cook there is decent evidence that the population, which was entirely self sustaining, was in a century-long decline from peak numbers. That should give an idea of hw many people the Islands can support with an entirely self-sustaining no imports/exports economy. There are a heck of a lot more people there now; just how are they going to live?
I fully understand that there are, in many places, too many tourists and the numbers and impact need controlling. But that comes at the cost of imported money.
Perplexed as why you think that slowly phasing out the tourist economy would plunge Hawaii back into a pre-contact economy. Nobody here is proposing to completely isolate the islands; at least I’m not. What I’m saying is phase tourism out as other economies are developed. Agriculture and Technology, for starters. It should be possible, if there is the political willpower.
Hella funny brah
Hawaii phased out ag now you want to phase it back in. Gotta choose. Serve or dig
Da cane and pineapple not only tings dat grow, brah.
Technology yes. Cow as left the barn on farming. Sugar cane and pineapple are grown somewhere else in a 3rd world countries without high wages. Same as here on the mainland. In Oregon tech firms want cheap land low taxes and abundant fresh water and electricity not Hawaii strong suit. Tourism is. I feel sorry for the locals because that means they are priced out. Answer: education for young people in computers that pays well and has possibilities of remote work.
I was pointing out what the Islands can sustain without imports. What manufacturing are you proposing. What agriculture on what land? How viable are they? Right now, you have coffee and Mac-nuts. How many people are employed for how much land and water? Hawaii has limited fresh water. Who will get it? Not saying it’s not possible, at some level, but I don’t think the needs of the current population for food, water, housing, energy, and employment have been really though through.
Good points. I don’t have all of the answers, obviously. But I know that when the current approach to a problem (in this case tourism as the overhelmingly predominant source of income) is not working, another approach must be sought. It will take time and sacrifice. But future generations are worth the effort. Either that or Hawaii must strictly limit tourism industry (Cap the number of daily arrivals, for example; cap new hotel/resort construction, etc) to stop cannibalism of the scarce resources (like you mentioned, water and livable space, among others). Unchecked growth for the benefit of the travels industry (hotel conglomerates, airlines) is slow suicide.
I don’t know where you read that gem about the decline pre-contact. There were up and down periods — three to be exact — before contact. But, the decline in population without rebound was post contact, due to the introduction of western diseases.
Bou are right about the population bust post pandemic. The mass exodus of residents from Hawaii was startling. And the largest employer of the state, the state government, makes their money from the taxes paid by the residents of the state. Without tax paying residents, the state cannot hire enough employees to continue offering certain social services. And without social services, residents will not be able to survive in Hawaii, thereby increasing the exodus. It’s a vicious cycle.
My family went to Maui this January and I thought It was expensive before Covid. I noticed that accommodation has doubled in price along with food. There are help wanted signs everywhere. We looked at housing costs and condos, one bedroom sell for 700,00 to 2 million.
We have said that it will probably be the last time we can afford to go to Maui!
what we need is more medium income housing all they think about biulding is for low income housing section people which is good but all people no matter what industry we we work in needs a chance to buy/rent a house for our future genertations.
What Hawaii needs is to petition a repeal of the Jones Act. If they can get goods less expensively, then the cost of living in Hawaii will go way down!
Hawaii needs to limit they’re short term rentals. That’s one way of improving the housing shortage for workers. Restaurants and other businesses need to offer discounts to housing providers who make their housing accessible to their employees.
with the hotels and their resort fees thats an extra $700/week plus daily hotel rate $2300 , Air bnb will only get stronger by supply and demand. It is the only thing that will save tourism while still offering housing to anyone.
Alot of the tourist using short term rentals are the same folks who go out to restaurants and food trucks for their meals.
Hawaii needs to Act..on how this is affecting everyone, everything..my friend who is a RN and makes great money said it was Truly a disaster the last two times there, increases in monetary needs and inability to Rent a car , I love Hawaii but there are other places to see..
I agree that car rental pricing have been very high. If you extend your stay they take advantage of higher rates. It’s very discouraging.
I may be exaggerating. But I think that we are becoming, if we are not already there, like a Dubai or Abu Dabi where only the rich live there and the service workers come from the cities around them.
This was our 10th time to Hawaii In January 2023, and most likely our last time, the groceries were outrageously expensive other than markets and even those were way up. Lodging was more expensive, again with CND$ exchange of 30%, nope ain’t going happen, Portugal will be just as nice and 10x cheaper, plus bike riding routes are safer and cooler to bike. You’ve priced yourself out of the tourism market, unless things get better?
Lol
Is not even affordable to do a staycation anymore
During pandemic the hotels were crying about no guests, rooms still expensive and giving rooms away covid and trying to attract our if state tele-work
They should have deep discounted rooms for kama’aina, made a little bit of money, kept their employees working. But no, only the execs made their salaries
I’m not sure why everyone thinks hawaii relies on tourism only people to see benefits from that is foreign business owners hotel owners specifically the booming industry here is actually construction but many don’t like to work hard or don’t have the drive to work in the construction industry they rather take easier jobs like working at a hotel or restaurant where the money is small then everyone so quick to blame tourism. Now cost of living is up but what drives up cost is when the alot of people start to move to hawaii you must be thinking how is that, the realtors and home owners know moving to hawaii is in very high demand so now they start jacking up the prices making huge profits. I hope this cleared the myth thank you.
Construction narrowly beats out science and technology to rank fifth in Hawaii’s industries.
My biggest competition for finding a decent place on Oahu to rent was military always won. I don’t blame landlords for wanting the military guaranteed money, but when you’re turning away someone like me with great credit and a good job, it shouldn’t make a difference. The bases need to help fix this.
Every hotel and owners of condos should be required to contribute to a pool to build housing for workers, or give them a rental subsidy.
Great , add another fee/tax to all the places owned by people that worked their entire life to one day have a place where they can enjoy their free time
Taxes /fees is already high and above the rest of the country
I am sure that there are a lot of folks on here who are opposed to “Big intrusive Government”. Do do what is suggested here in amy threads laws will need to be passed to limit rents, eliminate certain types of business, limit home/land ownership, limit what one can sell property for, and so on. All these things are “Government over-reach”. What is happening in hawaii is capitalism at its finest; make as much money as you can.
It’s not just happening in Hawaii, although Hawaii is a great example. I call it Darwinian Capitalism where it’s survival of the fittest. If you don’t happen to be white, old, and male, you are automatically a leg down. Add to that the unbelievable control that the rich and corporate interests have over our politics and well, you see the results. Finally, when you add in the fact that in that system there is an extreme focus on profits Now regardless of the consequences, well, you see the result in Hawaii where the very reason people come to Hawaii is being destroyed on a daily basis on the alter for more, more, more.