To qualify, prospective buyers would have to meet certain requirements under Act 97 that include not earning more than 140% of Honolulu’s median income. This limit equates to about $156,000 for a couple and $195,000 for a family of four.

Nakamoto said HCDA also aims to make units affordable to households earning the median income, which equates to about $111,000 for a couple and $139,000 for a family of four.

In 2024 on Oahu the median sale price for single- family homes was $1.1 mil­lion, a point at which half the homes sold for more and half for less. For condos the figure was $515,000.

Leasehold condos have been developed in Hawaii previously on private land. Most of these units produced decades ago were converted to fee-simple ownership, though some still exist today.

A 2021 study ordered by the Legislature and updated in 2022 concluded that buyer demand would likely be high for leasehold condos with two bedrooms and two bathrooms priced at $400,000. The study by the Hawaii Budget and Policy Center of the nonprofit Hawaii Appleseed Center for Law &Economic Justice said a comparable fee- simple unit built by a private developer would cost $600,000.

Part of the difference is attributable to financing costs and profit for a private developer, as well as the cost of land.