Requesting The University Of Hawaii Economic Research Organization To Conduct A Study On The Potential Impact Of The Use Of Taxation And Eminent Domain On The Price And The Availability Of Housing In The State To Address The Concentration Of Residential Property Ownership Among Owners Of Vacant And Surplus Housing And Institutional Investor Property Owners.
The resolution highlights the alarming statistics regarding property ownership, noting that a considerable percentage of homes and condominiums are not occupied as primary residences or are held by individuals who do not significantly contribute to the state. As out-of-state buyers represent a substantial market presence, the resulting implications on rent and housing prices are critical. The current state of the housing market has led to increased homelessness and out-migration among local families, intensifying the urgency for intervention.
Senate Resolution 126 (SR126) calls for a study by the University of Hawaii Economic Research Organization regarding the impacts of taxation and eminent domain on housing availability and pricing in Hawaii. The resolution comes in response to the state's escalating housing crisis, characterized by soaring prices and a severe lack of affordable options. Significant factors identified include the prevalence of vacant properties and the ownership concentration among institutional investors and out-of-state buyers, further compounding the housing shortage and driving local residents out of the market.
By advocating for the study of taxation and eminent domain, the resolution reflects a growing consensus that more aggressive measures are necessary to mitigate the housing crisis. This could involve significant legislative changes aimed at addressing high vacancy rates and the limited supply of accessible housing for residents. The use of eminent domain to reclaim vacant and surplus properties, especially those owned by absentee landlords, may raise legal and ethical questions, marking a distinct move towards a more interventionist approach in housing policy.
Overall, SR126 aims to devise a path forward that not only addresses the immediate challenges posed by the housing crisis but also promotes sustainable housing solutions for future generations. The findings from this proposed study could shape forthcoming legislative actions, potentially establishing new frameworks for property taxation and the use of eminent domain to ensure that housing remains accessible to Hawaii's residents.