Department of Numbers

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 9.39 as determined by December 2013 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)
December 2013 9.39 164.9
September 2013 9.52 160.8
June 2013 9.24 156.5
March 2013 8.76 154.4
December 2012 8.81 151.9
September 2012 8.81 150.1
June 2012 8.81 148.8
March 2012 8.81 148.7
December 2011 9.03 159.4

Honolulu, Hawaii Home Price-to-Rent Ratios

The current adjusted price-to-rent ratio for Honolulu is 36.47 as determined by December 2013 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)
December 2013 41.90 36.47 127.8
September 2013 42.47 36.96 124.7
June 2013 41.24 35.89 121.4
March 2013 39.09 34.03 119.7
December 2012 39.28 34.19 117.8
September 2012 39.28 34.19 116.4
June 2012 39.28 34.19 115.3
March 2012 39.28 34.19 115.3
December 2011 38.99 33.30 119.7

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 0.45 in December 2013.

Rent-to-Mortgage Payment Dollar Ratio: Realtor

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

Date Realtor Adjusted Rent
(Dollar Ratio)
December 2013 0.45
September 2013 0.45
June 2013 0.48
March 2013 0.54
December 2012 0.55
September 2012 0.54
June 2012 0.53
March 2012 0.51
December 2011 0.53

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
February 2014 $360,719
January 2014 $355,219
December 2013 $353,967
November 2013 $362,438
October 2013 $365,474
September 2013 $352,722
August 2013 $353,967
July 2013 $357,742
June 2013 $370,768
May 2013 $395,563
April 2013 $400,014
March 2013 $394,095
February 2013 $396,054

1. Specifically, home prices are from the non seasonally adjusted FHFA all-transactions quarterly series. Dollar ratios are calculated using NAR metro prices when available. Rent and income data are from the Census ACS and are carried forward into the following year prior to release of the new data.