No end in sight to rising housing prices, experts say - Hawaii News Now - KGMB and KHNL

No end in sight to rising housing prices, experts say

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HONOLULU (HawaiiNewsNow) -

Hawaii housing prices are higher than they’ve ever been -- and experts say there’s likely no relief in sight.

Real estate watchers say limited supply, high demand, a national economic recovery, and plenty of money coming in from outside of the state are all driving up prices.

“I see the longer this recovery lasts, the higher the prices are going,” said Ricky Cassiday, an independent housing consultant.

Cassiday said he expects the hot housing market to stick around for the foreseeable future, barring an unforeseen disaster or a dramatic change in circumstances.

The rental market, in particular, is seeing prices skyrocket, he said.

In September, the median sales price of a single-family home hit a record $730,000, according to the Honolulu Board of Realtors. That tops the previous record -- $719,500 -- reached in Nov. 2014.

Meanwhile, the median cost of renting a home in the islands was the highest in the nation in 2014 at $1,448, Census estimates released in September show.

That median rent is 55 percent higher than the national average -- $934 a month, according to an analysis conducted by the U.S. Department of Business, Economic Development and Tourism.

The skyrocketing housing prices come as the state and advocates struggle to tackle a worsening homeless crisis.

“Hawaii is experiencing an extreme housing crisis,” Myoung Oh, director of government affairs for the Hawaii Association of Realtors, said in a news release.

The group will hold a “landlord summit” on Nov. 17 to think through how landlords, property managers, social service providers and government officials can work together to help homeless families.

For more information on the summit, go to www.hawaiirealtors.com

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