Report backs empty-homes tax to address housing crisis on Oʻahu

The Hawaiʻi Appleseed Center for Law & Economic Justice is recommending that the Honolulu City Council impose a 3-5 percent empty-homes tax (EHT), citing a worsening housing crisis on Oʻahu where more than eight in 10 renters now spend at least 30 percent of their income on housing costs.

The Honolulu City Council is considering Bill 46, which would impose a 3 percent EHT on properties vacant for more than 6 months each year, including both non-owner ­occupied and non-renter ­occupied homes, and require that properties occupied for 6 months be occupied for at least 3 consecutive months.

Appleseed on Monday released its 2024 report exploring an EHT to address Honolulu’s housing crisis, saying Honolulu’s housing market, “is increasingly catering to non-resident investors at the expense of local families searching for affordable homes.”

To address investment-­driven purchases and support affordable housing for working families, Appleseed recommended a 3–5 percent tax, which could generate annual revenue ranging from $183 million to $305 million.