A market of musical chairs
Remember musical chairs? When the music stopped, you either had a seat or you didn’t. Tension built as the music got quicker and the chairs fewer. Finally, it came down to one chair and two butts. Would it be the fast, agile kid or the brute with meaty elbows who claimed the prize?
We had a friend who long ago described housing on Maui as a game of musical chairs. Whether it was trying to find a decent place to rent, or to save enough for a down payment on a home, it was all too common for island folks to be caught on the outside looking in.
Decades have passed and the game keeps on spinning. January’s median sales price for a singlefamily home on Maui was reportedly $1.16 million. That’s a new record for the island and an 18.1 percent jump from the median price of $980,000 in January 2021. The median price for a singlefamily home in Wailuku this January was $845,650, while in Kahului it was $857,000.
Such high prices exclude many of the island’s working class from homeownership. Lately, even those who have enough for a down payment often make offers only to be outbid. We know a young professional keen on buying a home Upcountry who was outgunned time after time by buyers willing to pay far over asking price, and usually with cash. She now sits on the sidelines as prices have exceeded her reach.
Mainland and international buyers have certainly helped drive up real estate prices. Converting rentals from long term to short term has done the same for rents. But this musical chairs game is not confined to the island or the state. Would-be homebuyers and tenants around the country face the same issues of skyrocketing prices and inventory sorely trailing demand.
Obviously, the island needs an infusion of housing that is not only affordable, but also presented in such a way that people who live and work here get a fair crack. These homes should be in great neighborhoods that fit within the community plan. Nuts and bolts issues such as water, sewage, traffic, schools, services and cultural preservation must play key roles in determining what gets built and where.
Projects that meet those criteria do not happen overnight — just ask developer Mike Atherton. He has been dotting the i’s and crossing the t’s of his proposed Waikapu Country Town for years. On Wednesday, a Maui County Council committee unanimously recommended approval of a proposed public-private partnership with Atherton that would jumpstart the development of nearly 1,500 homes, including up to 500 workforce housing units in Waikapu.
While a project of this size is sure to have impacts that reshape Central Maui, it also has potential to slow the musical chairs that prevent this island’s working class from finding seats at the housing table.