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 bill indicates that findings from the proposed study could lead to recommended legislative actions which may involve implementing a tax structure targeting vacant and surplus housing owned predominantly by non-residents and institutional investors. Such measures are suggested to alleviate the current market strains by encouraging the turnover of underutilized properties and creating mechanisms that would facilitate the development of affordable housing. Additionally, the resolution advocates for the use of the state's eminent domain power as a tool for acquiring surplus housing to repurpose it as affordable housing for local residents.
SCR156, introduced in 2025, requests the University of Hawaii Economic Research Organization to conduct a study on the potential impacts of taxation and eminent domain on the price and availability of housing in the state of Hawaii. The background of the bill highlights a severe housing crisis, characterized by extraordinarily high prices and a limited supply, particularly affecting local residents. An alarming percentage of homes and condos are owned by out-of-state buyers and institutional investors, contributing to increasing rents and exacerbating the housing shortage. The resolution urges an in-depth investigation into these topics to inform legislative strategies aimed at addressing housing affordability.
There are potential points of contention relating to the bill, especially concerning the freedom of property ownership and the potential pushback from institutional investors and property owners who might oppose new taxation or the exercise of eminent domain. Moreover, issues about how these measures would affect local communities, particularly in terms of property rights, are likely to arise. Balancing the need for affordable housing against the rights of property owners and the potential economic implications of taxation policies will be central to the discourse surrounding SCR156.