Honolulu, Hawaii Home Affordability

The data below measures home affordability for the Honolulu, Hawaii metropolitan area using price-to-income and price-to-rent metrics.¹ The maximum affordable loan amount for the median household income is also calculated. You can also compare Honolulu home affordability to other cities.

Honolulu, Hawaii Home Price-to-Income Ratios

The current price-to-income ratio for Honolulu is 9.0 as determined by March 2012 Realtor median sales prices. The second chart shows a history of the ratio as an index calculated from the Federal Housing Finance Agency's Honolulu HPI series. Median household income data for Honolulu is from the Census American Community Survey.

Price-to-Income Dollar Ratio: Realtor

Price-to-Income Index Ratio: FHFA

Note: Index set to 100 in Q1 of 2000

Honolulu, Hawaii Home Price-to-Income Ratio History

Date	Realtor (Dollar Ratio)	FHFA (Index Ratio)
March 2012	9.00	—
December 2011	8.72	156.0
September 2011	8.75	156.1
June 2011	8.89	157.4
March 2011	8.45	154.4
December 2010	8.87	155.6
September 2010	8.87	154.8
June 2010	8.87	154.4
March 2010	8.87	153.1

Honolulu, Hawaii Home Price-to-Rent Ratios

The current adjusted price-to-rent ratio for Honolulu is 35.89 as determined by March 2012 Realtor median sales prices. This ratio is calculated using household size adjusted median contract rent for Honolulu. The chart below shows an index of the rent ratio calculated from the metro FHFA HPI series and the Honolulu median contract rent data from the Census ACS.

Price-to-Rent Dollar Ratio: Realtor, Realtor Adjusted Rent

Price-to-Rent Index Ratio: FHFA

Note: Index set to 100 in Q1 of 2000

Honolulu, Hawaii Home Price-to-Rent Ratio History

Date	Realtor (Dollar Ratio)	Realtor Adjusted (Dollar Ratio)	FHFA (Index Ratio)
March 2012	41.68	35.89	—
December 2011	40.37	34.77	125.6
September 2011	40.53	34.91	125.7
June 2011	41.19	35.48	126.8
March 2011	39.15	33.72	124.3
December 2010	41.07	35.37	125.3
September 2010	41.07	35.37	124.7
June 2010	41.07	35.37	124.3
March 2010	41.07	35.37	123.2

Honolulu, Hawaii Home Rent-to-Mortgage Payment Ratio

The rent-to-mortgage payment ratio uses the adjusted rent for Honolulu against a 100% loan-to-value mortgage (30-year fixed) for the median price home using Realtor home sales statistics. It's a lot like a cap rate, but I find it more appealing in ratio form. A ratio of 1.0 means that annual rent is equivalent annual mortgage payments. Values less than 1.0 indicate rents are cheaper and values greater than 1.0 mean mortgage payments are cheaper. Beware, taxes are not considered here. The rent-to-mortgage payment ratio for Honolulu was 0.49 in March 2012.

Rent-to-Mortgage Payment Dollar Ratio: Realtor

Honolulu, Hawaii Home Rent-to-Mortgage Payment Ratio History

Date	Realtor Adjusted Rent (Dollar Ratio)
March 2012	0.49
December 2011	0.50
September 2011	0.49
June 2011	0.46
March 2011	0.47
December 2010	0.45
September 2010	0.47
June 2010	0.45
March 2010	0.44

Honolulu, Hawaii Inferred Affordable Mortgage

The inferred affordable mortgage value is determined by taking the median household income for Honolulu, Hawaii and calculating the mortgage 30% of that income could afford. Traditionally, 30% of income is the maximum amount a homeowner could use towards a home loan. Inferred affordable loan values are calculated from ACS median household income and average monthly mortgage rates.

Inferred Affordable Mortgage

Honolulu, Hawaii Inferred Affordable Mortgage History

Date	Inferred Mortgage
January 2012	$362,388
December 2011	$360,635
November 2011	$359,329
October 2011	$355,881
September 2011	$354,175
August 2011	$347,472
July 2011	$336,189
June 2011	$337,767
May 2011	$332,679
April 2011	$325,075
March 2011	$325,075
February 2011	$321,004
January 2011	$328,085