The Daily Dish - Can you afford to live here?

Posted on: March 27, 2008 at 2:00:00 am
Can you afford to live here?

Apparently, Hawai'i residents' personal income last year grew from the year before.

But -- as you'd probably guess -- not as quickly as our counterparts on the Mainland. (Read the Associated Press story here.)

Are you surprised?

A friend of ours from Los Angeles decided to fulfill his dream of living in Hawai'i, bought a plane ticket, and applied for jobs here. He's a skilled carpenter who can make, easily, $70,000 in California. Here, his wage dropped to less than $40,000. He couldn't believe it.

"I guess you have to pay to live in paradise," he said.

I beg to differ.

Hawai'i has long had one of the nation's highest cost of living -- and without the salaries to help families survive. I mean, I wouldn't mind paying $2,500 for a one-bedroom apartment -- if I was making $75,000 a year!

According to the U.S. Department of Commerce's Bureau of Economic Analysis, personal income in Hawai'i grew 6 percent in 2007, the 10th-largest increase in the nation.

Per capita personal income in Hawai'i averaged just over $39,000 last year, up from $37,000 in 2006. The largest part of the state's income growth came from the construction industry.

But Hawai'i -- which hovers in the Top 5 most expensive states to live -- ranked 18th in personal income.

No wonder so many residents -- and many of my friends -- leave the Islands and never come back.

They can't afford to live here!

I get that we're paying for the year-round warm weather, for the beaches, for this unique culture. But it's hard to enjoy all of that when you're working two jobs just to afford your rent!

It's just unacceptable to me.

What do you think?

37 comments • Permalink • Report offensive comment

Comments:

Comment from: The King [Visitor]

1st!

03/27/08 @ 03:12

Comment from: eMH [Visitor] · http://www.emarkethawaii.com

I think most people are shocked because the cost of living has risen rapidly in the past few years.

In college, I rented a 1 bdr/bath with all utilities included for $500/mo. Eight years later, that same place now charges double (and now without utilities).

Its all about living within your means. If you're not making the big bucks then live at home or with a roommate. Take the bus, eat out less, whatever you need to do to make ends meet.

And I know someone will say this piece of advice: marry a rich guy/girl.

03/27/08 @ 03:18

Comment from: anklebiters [Visitor]

Cat, you're really willing to pay $2,500/month for a 1 bdrm apt?? That's $30K a year for something you don't even own and no tax write offs to boot. You're looking at a net of around $50K after taxes, health insurance, 401, etc. are deducted. Is $20K enough to pay for your living expenses for the year? It's such a steep price to pay to live in paradise, you'll need another job :-((

03/27/08 @ 03:31

Comment from: TSK [Visitor]

It's not so much the cost of livving in Hawaii. It's the job opportunities or lack of JO and what they pay in Hawaii.

I did the mainland college thing moved back to Hawaii bright eyed bushy tailed ready to contribute to the Hawaii economy. The opportunities are so bad in Hawaii I applied for a state job as a Maintenance Worker I and they said I didn't have work experience mowing lawns and picking up trash. So I sold my CRX and bought a one way tix to Silicon Valley. I make a AVERAGE 100K/yr and that's underpaid, but I job is good cus it lets me fly back home to Hawaii twice a year.

I'm currently looking for a condo in Hawaii to buy because the cost of living in Silicon Valley is just as high as Hawaii. I can web in and work from Hawaii. Any suggestions? Maybe West Oahu, Pearl City, Aiea,....

Hawaii has done a terrible job for creating carrers for their future generations.

03/27/08 @ 04:03

Comment from: anklebiters [Visitor]

I left the isles years ago, left for the same reasons that still exists today. Back when my salary was $75K, I had a two story home in a nice community, pool, mortgage was $900 on a 30yr, lived comfortably....AND I didn't need a second or third job to survive. This certainly would not be the case in Hawaii. I fly back home often and I had planned to retire in Hawaii..that may change. I hear Arkansas is relatively an inexpensive place to retire to :-))

03/27/08 @ 04:33

Comment from: manoa [Visitor]

i don't blame people 1 bit for moving away for a better lifestyle. seeing how much farther your $$ can stretch on the mainland is no joke. every time i go back home....one of the first things we do besides hit the beach is go food shopping to stock up the fridge. the prices always floor me.........$8 for a gallon of milk? last time i checked....seattles milk prices were $2.80 per gallon. What will rent you a closet back home, can buy a 4 bed 3 bath house here.
don't get me wrong.....i miss Hawai'i every single day with all my heart. absolutely no place like our island home....but like cat said.......if you gotta work 2 jobs/7 days a week to get buy.....how can you enjoy life back home? sure the surf is colder....the weather more harsh, but the Hawaiian community bond is tight up here. Everyone knows the struggles back home...and that we all miss it. but just in my area...there must be no less than 10 local places to eat, local artist in concert, hula halaus, hawaiian craft shows...even outrigger canoe clubs. eh.......move up here.....save and invest your $$$...and maybe one day...the dream of living back home can become reality. just make sure you don't forget to play the lottery too.

03/27/08 @ 05:14

Comment from: The Chicago Cousin [Visitor]

I think the issue with hawaii, is that more and more people are retiring there thus not a need for income, and or people are buying second homes there thus driving up the real estate prices.

Last time I was in Hawaii, I got offered a nice job with the Hilton Hawaiian Village, included housing. I think it is just a matter of finding the right niche and then getting paid. If anyone out there is an insurance broker, the Cuz's company is ramping up big time in honolulu.

03/27/08 @ 05:22

Comment from: BigWave96744 [Visitor]

Happy Birthday to you
Happy Birthday to you
Happy Birthday Dear Cat
Happy Birthday to you!!!!!

Have a gread day...
SURGE!!!!

03/27/08 @ 05:44

Comment from: Ellen [Visitor]

I live in San Francisco and the cost of living is pretty high. I find that I can get by because the salaries offered here is very competitive. I worked for a major retail company and I know for a fact that store managers in San Francisco got paid about 25% more than the store managers in Hawaii.
I remember reading the company policy on travel and the per diems allowed; I was surprised that if an employee traveled to New York City on business, the per diem was higher than traveling to the rest of United States because New York is known for its high cost of living. Maybe it's time for the big corporations who have businesses in Hawaii to raise the awareness and pay their people in Hawaii the competitive wages offered in New York and San Francisco.

03/27/08 @ 06:01

Comment from: anklebiters [Visitor]

Speaking of local eats in AZ...the best I've found is Aloha Kitchen in Mesa. Many have come and gone over the years - Waikiki, Northshore, Ohana, but this one is still around. Ray's been in the same location for 22 years, the length of time I've been enjoying his menu. Hawaiian food day is Wed. and Sat....get there early or there is nothing left. Canoe racing? My friend is on the local outrigger canoe club, which travels to Hawaii for races, in fact they have a big event this weekend including dragon boat racing. Lots of free time if you aren't working a second job to simply exist.

03/27/08 @ 06:02

Comment from: Da Tin Man [Visitor] · http://dennis159.vox.com

Sure the cost of living in Paradise is high but we do not have to pay for fuel to heat up during the winter and we do not need an air conditioner to survive our "heat waves', we do not need to buy clothing for the different seasonal changes. You can live within your means. It all boils down to wants and needs. If you need to buy all kinds of hih tech thing to keep up with the jone's then go live on the mainland. I much prefer living here because moyther nature has been really good to us. We don't get hit snow storms, hurricanes fvery year, tornado when ever...
Go figure... Lucky you live Hawaii. Go to the mainland .. the less people , the better for us guys who like stay..

03/27/08 @ 06:41

Comment from: Annoddah Dave [Visitor]

CAT,

Agree, it is getting tougher to make a go here. I am retired from one job and still working full time in another. Kids will be the ones to feel it. Hopefully, they will be able to stay because eventually they will inherit the house and family home my parents bequeathed to me and my sibs. My kids are the only ones who have a blood right. My sibs have no kids. If the weather were better, I would have loved to live my life in Europe.

03/27/08 @ 06:54

Comment from: franksabunch [Visitor] · http://www.xanga.com/franksabunch

And yet the people of Hawaii Nei keep electing the same people into office...

03/27/08 @ 06:59

Comment from: turk fontaine [Visitor]

I live in Marin County, CA. I don't see anything here that is less expensive than HI. The median price of a house crossed the magic million dollar line last year and is barely under it now. Gas is 4 bucks downtown in San Francisco. It's cold here from November to April, and even in July you can get a wind chill that will send you indoors. So. I will see you all on April 8. My flight to Hon. gets in around noon. This time no return ticket will be necessary.

03/27/08 @ 07:24

Comment from: Rachel [Visitor]

The local flavor is watered down tho- It seems like everytime I come home for a visit (or attempted move back) everyone there wants everything we have up on the mainland. Where is Hawaiian flavor?
Costs rising is just the nature of the beast - it is more extreme in Hawai'i tho -
Just think what would happen if the matson boats stopped arriving?
YIKES! Who cares about money when there is nothing to survive on!
Saying all that tho makes me want the islands to be as sparse as it was when I was a kid growing up...le sigh...before there was Windward Mall? Anyone?

03/27/08 @ 07:27

Comment from: RONW [Visitor] · http://www.hotelwaikiki.net

since "rent" devours a large part of anyone's paycheck, I'm concerned about the number of out-of-state students who choose to, or have to live off campus, and in doing so, make housing scarce. The owners hike up the rent of the apartments that they rent to students. Whatever affordable apartments that are leftover, the rents there are also jacked up because prospective renters outnumber the supply, making more apartment units less affordable in the process. Even people who have lived in the same apartments for years are not immune from the gouge, you might be next. Through no fault of their own, at least for most of the out-of-state students, they exist as an invasive species to our community, financially speaking. Colleges in Honolulu, especially, the University of Hawaii, Manoa, have to start acting more responsible and build sufficient student housing before registering more students then bragging about the increase in enrollment. I dunno for sure, but perhaps, the regents themselves own rental units and could care less because they benefit from inflated rents. Between you and me, I'm starting to harbor animosity against any out-of-state student who I even suspect lives off-campus.

03/27/08 @ 07:41

Comment from: kako mochi [Visitor]

this is part of the reason why i'm seriously thinking of moving to the mainland . . .

03/27/08 @ 08:00

Comment from: guest [Visitor] · http://www.haolehubbyclub.com/Teach_Haole.htm

I agree it's unacceptable to me too.

18TH!!!

03/27/08 @ 08:16

Comment from: OMG! [Visitor]

i work for a major corporation in hawaii and i was told that my pay on the mainland for the exact same job would actually be LOWER because the company does COLA for hawaii employees. that kinda' surprised me. i haven't verified that but my salary ain't too shabby for a single guy living in hawaii.

its all about living within your means. take my car for example - i bought mine pretty cheap because it was a repo'd car. the previous owner didn't even have it for 6 months. my car is an entry-level luxury sports sedan. i can afford the payments because i have really good credit (almost 800) and i got really good financing (3.95% for 36 months). i can more than afford that. but many people want to drive luxury cars when they can only afford a civic. consquently, their entire paycheck goes to the car. that's not practical! live within your means people!!!

03/27/08 @ 08:26

Comment from: joekalihi [Visitor]

Hawaii has always been expensive. The bad news is that it's not going to get better. 50 years from now there will be no locals living here. It will turn into a billionairs' papadise.
Until then, I hope my 91 toyota keeps running.

03/27/08 @ 08:38

Comment from: Jen [Visitor]

Cat,
I strongly suggest you buy a place rather than renting!

I thought I couldn't do it. I'm single, only been in the working world for 4 years last year but I finally took the plunge and bought a tiny one bedroom last year. I just did my taxes and was amazed at the tax write off! It came out to an additional $300 a month with the tax write off from purchasing my place.

You should buy! I didn't have enough savings for a 20% downpayment, so I put less. You can buy with little down.

Jen

03/27/08 @ 08:44

Comment from: JuSaMee [Visitor] · http://jusamee.vox.com

i was born and raised here and realize with my college education and my husbands skills we could be WAY better off in the mainland somewhere...but here is home. all of my family and close friends are here, so quality of life and hopefully raising kids with family means more than money. if it means a smaller house or less trips or other possessions, than its worth the trade off. from when i was in high school i knew that i'd have to do all i could to get a good education, to get a good job, just to stay here in hawaii. theres no other place i'd rather be...we just gotta make it work...

03/27/08 @ 08:51

Comment from: Chicken Grease [Visitor]

I second franksabunch's sentiment. That's exactly right. We sort of LET these guys tax us.

Jen, too, reminds of the tax incentives of owning.

And . . . residents keep complaining about the cost of living, everyt'ing so expensive, whatever, we're always going to Vegas; heck, I know people from other states -- this is the ONLY state where folks are traveling twice, three times a year. Vegas -- "we never when win . . . but, we had fun." Sound familiar?

Island residents can REALLY overindulge. They should stop it. When you're responsible with your money, it feels really good, no, GREAT in the long run (and I speak from experience). Doesn't matter where you live.

03/27/08 @ 08:57

Comment from: MoOgooGuypAN [Visitor] · http://www.moogooguypan.vox.com

Everyone has their price. If you really want to live here, like I do, you'll pay the price no matter what. For one thing, I can't stand cold weather. Second, I need my friends and family near. Third, I'm asian, and feel like a second class citizen when ever I go there. Something about the stares I get when I just walk around their Walmart. With that in mind, Hawaii is cheap for me.

03/27/08 @ 09:04

Comment from: Dabomb [Visitor]

They should have a rule for buying property in Hawaii. If you are living in that property, then fine. But if you are not, and only buying it as an investment, vacation home, etc, then PUT SOME EXTRA TAX ON IT OR RAISE THE PRICE.

Lets say a single family home is worth 600K. Then we can sell if for 600K for the local people, or people who will live in that home 12 months year round. And for all those that use that home for other means, then we can sell it to them for double the price, aka, 1.2 Mil....

That should control affordable housing for the locals, and generate income for the state.

Who's with me?

03/27/08 @ 09:13

Comment from: mixedplate [Visitor]

If it were any cheaper to live here, everyone wanting to get out of the smog hole known as LA would move here.

The have nots will always gripe, while the ones who sweat it out will always come out on top. The story hasn't changed, my parents told me they had the same gripes when they were growing up.

03/27/08 @ 09:18

Comment from: CDaMan [Visitor]

I have been working two jobs for 25 years to live in Paradise. I agree it is not easy to live in paradise. You really have to pick your shots where you want to spend your money. I have learned to tone down my tastes and desires. I could probably make the same amount on the mainland working one job, but I wouldn't be living in Hawaii. There is no place like the islands! Not a bad idea Dabomb, I like it.

03/27/08 @ 09:38

Comment from: MadiMacMele [Visitor]

Love the islands, won't leave it for anything. If it means the hubby and I have to find three jobs, so be it. The price you pay for paradise is to true but so worth it to me.

03/27/08 @ 09:50

Comment from: zzz [Visitor]

Cat, if you really really think it's unacceptable, you wouldn't be here. The fact that you're here shows that, perhaps grudgingly, you've accepted it.

I don't think it's unacceptable, or I wouldn't be here. I think it helps make this a special place--who lives somewhere so expensive if you don't really want to?

03/27/08 @ 09:51

Comment from: papaya [Visitor]

I completely agree with Chicken Grease on Hawaii residents' tendencies to overindulge.

While putting myself through college and grad school on the mainland (much thanks to financial aid!), I seriously learned the value of a dollar. My older siblings, who have lived in the family home their entire lives, never experienced that kind of independence and responsibility -- paying rent, cooking meals because you couldn't even afford McDonalds, making sacrifices for your long-term well-being, etc.

While others around me splurge their meager incomes on designer pursues, manicures and alcohol in the clubs (no rent to pay, so lots of disposable income, right?!), I have managed to save tens of thousands for my retirement and future real estate investments. Even with a graduate degree, my income isn't much higher than the Hawaii average, yet I feel very satisfied by my economic state thanks to the habits I developed when I DIDN'T live here!

Anyone notice how much press coverage the new Nordstrom store received -- side by side with the mortgage crisis stories?! How ironic!

03/27/08 @ 09:57

Comment from: anklebiters [Visitor]

Comment from: RONW

since "rent" devours a large part of anyone's paycheck, I'm concerned about the number of out-of-state students who choose to, or have to live off campus, and in doing so, make housing scarce.

This is what is being implemented at ASU - incoming freshmen are required to dorm and subscribe to a meal plan. Dorms are popping up at an alarming rate on campus.

03/27/08 @ 10:38

Comment from: dev-null [Visitor]

re: Dabomb

It might suck if you're priced out of the market but that's capitalism. You prefer the alternative *isms?

03/27/08 @ 10:46

Comment from: Christine W [Visitor] · http://www.aloharecruiting.com

Interesting that many people from the Bay Area and other mainland sites are commenting.

Living in Hawaii is definately a challenge and I can not help but think about all the previous generations and their stuggles to maintain a good standard of living for their families.

I can only imagine what it was like for people from other countries who came to Hawaii in the Plantation era with great hopes for thier future and many of them who made pennies were able to meet those challenges and build some of the most incredible businesses that we have here today.

Having said that - I still feel "Lucky we live Hawaii"

03/27/08 @ 12:44

Comment from: dev-null [Visitor]

re: Interesting that many people from the Bay Area and other mainland sites are commenting.

I was born and educated in Honolulu then left for better career opportunities. Are you implying that I no longer have any rights to buy real estate?

03/27/08 @ 13:11

Comment from: anon [Visitor]

hopefully the high costs will eventually eliminate the riff-raff in Hawaii.

03/27/08 @ 17:22

Comment from: Pablo Wegesend [Visitor] · http://pablowegesend.blogspot.com

I work as a substitute teacher which isn't the most steady job in the world. As of now, I'm still able to pay rent, health insurance, electric, cell-phone, college loan, and YMCA membership.

I can't afford a car, I take the bus.

As long as I have a home, then I'm better off than 75% of the world's population

03/27/08 @ 17:51

Comment from: 2nfro b4 statehood [Visitor]

My hula lessons in Wisconsin 45 yrs ago,live here since 1994,alwys kamaaina. Cant wear,eat paradise;costs always high for raising families, job opps nil. Upon return from serving in Korea my parents had to leave, no decent job opportunity for my father,only 7th grade Kaimuki education b4 leaving school to slop pigs in Waimanalo at the dairy in the '40s,family had to eat and he had to help.

03/29/08 @ 21:33

Comments are closed for this post.


	MINI SITE MAP
LOCAL NEWS :	Education \| Obituaries \| Weather \| Traffic hotspots \| Military news \| Discussion boards \| Live chat \| Columnists
SPORTS :	Surf report \| UH sports \| High school sports \| Recreation \| Sports calendar \| On the Air \| Golf report \| National sports
ISLAND LIFE :	About Men/Women \| Taste/Recipes \| Faith calendar \| Comics \| TGIF calendar \| Tube Notes \| Pet Project
ENTERTAINMENT :	TGIF weekend calendar \| 4-week guide \| Movie showtimes \| Dining \| Visitors \| National arts & leisure
BUSINESS :	Hawai'i stocks \| Hawai'i mutual funds \| Hawai'i mortgage rates \| Island bank rates \| Stock quotes \| Moneywire \| Coming events \| Trade Winds \| Local resources
OPINION :	Letters to the Editor \| Dick Adair's cartoons \| Submit a letter \| Submit a commentary
TRAVEL :	Travel almanac \| Currency rates \| Destinations \| Sunday travel ads
HELP PAGE :	Contact us \| Back issues \| Newspaper subscriptions \| How to advertise \| Frequently asked questions \| About us \| Site map \| Terms of service \| Corrections
CLASSIFIEDS :	Classified ads \| Shopping \| Coupons \| Place an ad
PARTNERS :	Jobs: Careerbuilder.com \| Cars: Cars.com \| Apartments: Apartments.com