The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the House Committee on Housing on March 12, 2025.
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March 12, 2025, 9 a.m.
Hawaii State Capitol
Conference Room 430 and Videoconference
To: House Committee on Housing
Rep. Luke A. Evslin, Chair
Rep. Tyson K. Miyake, Vice Chair
From: Grassroot Institute of Hawaii
Ted Kefalas, Director of Strategic Campaigns
RE: SB25 SD1 — RELATING TO HOUSING
Aloha Chair Evslin, Vice-Chair Miyake and other members of the Committee,
The Grassroot Institute of Hawaii supports SB25 SD1, which would allow counties to decrease the number of housing units that can be built in one area of the county only if the county allows more housing units in another area of the county — so there is no net loss in residential development potential.
Basically, SB25 would prevent counties from exacerbating the housing crisis, because when a county changes a zoning ordinance to reduce the amount of housing that is allowed in a certain zone, it reduces the potential housing supply.
These sorts of “downzonings” have occurred in the past. For example, in 1973, Honolulu lowered the density of a parcel zoned for apartment use and the owner sued in response.[1] These downzonings might be infrequent, but SB25 takes the right approach by attempting to limit their occurrence. After all, Hawaii’s housing shortage is acute.
As the Hawaii Department of Business, Economic Development and Tourism pointed out in a March 2024 report, Hawaii needs an average of 3,297 new housing units per year to satisfy demand between 2025 and 2035.[2]
Further, as measured by the state’s Honolulu Construction Cost Index, the cost for building single-family homes in 2024 was 2.6 times higher than the cost in 2020. For highrises, the cost was 2.5 times higher.[3]
Hawaii needs more housing, not less, and SB25 would help make sure that the state’s housing potential would not be constricted by downzoning.
Thank you for the opportunity to testify.
Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii
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[1] David Callies, “Land Use: Herein of Vested Rights, Plans, and the Relationship of Planning and Controls,” University of Hawai’i Law Review, 1979, pp. 171-172.
[2] “Hawai‘i Housing Demand: 2025-2035,” Research and Economic Analysis Division, Hawaii Department of Business, Economic Development and Tourism, March 2024, p. 2.
[3] “Quarterly Statistical and Economic Report, 4th Quarter 2024,” Hawaii Department of Business, Economic Development & Tourism, pp. 107-108.
