Hawaiʻi already has the tools to create a locals-only housing market; we just need to use them
For years, the Hawaiʻi State Legislature has grappled with a pressing question: how can we prevent long-time residents, and especially Native Hawaiians, from being priced out of our housing market? Proposals to "ban non-residents" from buying homes surface periodically—but they inevitably collide with the U.S. Constitution’s Commerce Clause, which prohibits such outright exclusion.
Yet, this persistent challenge reflects a widely shared concern: housing should serve the people who live and work here. While constitutional limits exist, they do not leave us powerless. Using state and county tools—like zoning, affordability requirements, and tax policy—we can take meaningful steps to ensure housing prioritizes local families.
At Hawaiʻi Appleseed, we define a “locals-only” housing market simply: it means putting residents first. Whether buying a first home, renting, or selling within the community, local people should have the advantage. Housing should function as a home—not as a global commodity.
The good news is that Hawaiʻi already has effective tools to move in this direction. From deed restrictions and resident preference policies to tax incentives for owners and disincentives for speculators, we have proven strategies to prioritize residents—many of which have been in our toolkit for over 50 years.
In the 1970s, amid growing concern over outside buyers, the Hawaiʻi State Legislature passed Act 105, establishing the foundation for resident-first housing programs. This law promised to prioritize local people through fast-tracked projects, low-interest loans, and preferences for first-time homebuyers. Core tools written into that law—like owner-occupancy requirements, buyback restrictions, and income verification—remain just as vital today.
We must build on this foundation. To create a true locals-first housing market, we should expand proven, practical strategies:
Deed Restrictions: Already used widely, these keep homes in resident hands by limiting sales and occupancy to locals, removing units from speculative markets.
Down Payment Assistance: Programs like the Hula Mae Revolving Fund help residents overcome entry barriers. When paired with deed restrictions, they secure affordability for generations.
Community Land Trusts: These preserve long-term affordability and can be tailored to support specific communities more effectively than top-down programs.
Instead of making smart use of these existing tools, Hawaiʻi has over-relied on inclusionary zoning. To truly solve our housing crisis, we need a unified statewide approach.
Here’s how: Use the 201H-38 Alternative Pathways program to fast-track deed-restricted owner-occupant housing—ensuring units remain available only to Hawaiʻi residents. Activate down payment assistance programs to help local buyers bridge the income-housing cost gap. Apply a simple, consistent deed restriction so that every unit remains permanently off the speculative market.
We have the tools, but what we lack is cooperation between county councils and state agencies. When housing projects become political battlegrounds, constituents lose real opportunities for stable, affordable homes.
It’s time to simplify the system, prioritize housing for Hawaiʻi’s people, and stop layering on affordability requirements that make homeownership financially out of reach. A true locals-first housing market isn’t about exclusion—it’s about protection. It’s about ensuring working residents can put down roots and thrive.
