Report: No state has fewer young homeowners than Hawaii

Report: No state has fewer young homeowners than Hawaii

HONOLULU (HawaiiNewsNow) - Just 1 in 5 young people in the islands are homeowners, a new analysis shows.

That's the lowest percentage in the nation.

The financial website says that just 20 percent of people in Hawaii under 35 own a home, condo or apartment.

"Hawaii is home to one of the most shocking housing statistics," Bankrate said, in publishing its analysis. "Locals pay a staggering 38.3 percent of their median yearly income for their homes, the highest in the country."

Bankrate also named Hawaii the second-worst state in the country for first-time homebuyers. Only California ranked worse.

The rankings were based not only on housing affordability, but the job market, housing market tightness and credit availability.

Hawaii's job market ranked high, as did its credit availability. But it performed poorly on affordability and housing market tightness.

Bankrate's analysis said Hawaii's homeownership rate compared to more than 40 percent in Minnesota, Iowa and six other states.

Nationwide, "it is the youngest adults who are taking the biggest hit downward in ownership rate," in the wake of the Great Recession, said Lawrence Yun, chief economist at the National Association of Realtors,

The states that were best for first-time homebuyers were Utah, Minnesota, Kansas, Missouri and Iowa.

The analysis comes on the heels new data that shows rents in Honolulu are up about 6 percent over last year, a sign that Hawaii's hot housing market shows no signs of cooling off.

Copyright 2017 Hawaii News Now. All rights reserved