THE SENATE	S.R. NO.	147
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII

SENATE RESOLUTION

 

 

REQUESTING A STUDY ON THE IMPACT OF FEDERAL HOUSING ALLOWANCES ON RENTAL MARKET CONDITIONS IN HAWAII.

 

 

     WHEREAS, the State of Hawaii is experiencing a prolonged housing affordability crisis, with rental costs that significantly exceed national averages and place substantial financial strain on local working families; and 

 

WHEREAS, Hawaii’s chronic housing undersupply, geographic isolation, and regulatory and infrastructure constraints limit the market’s ability to respond quickly to demand pressures; and 

 

WHEREAS, Hawai i hosts a significant United States military presence, including major installations such as Joint Base Pearl Harbor–Hickam, Schofield Barracks, Marine Corps Base Hawaii, and Fort Shafter which are comprised of approximately 95,466 active-duty military, family members, and adult dependents; and 

 

WHEREAS, a study published by the Hawaii Housing Finance and Development Corporation in 2024 found that approximately 60% of these active-duty military families resided in the off-base or private rental market, accounting for approximately 14,700 homes; and 

 

WHEREAS, active-duty service members receive Basic Allowance for Housing (BAH), which is administered by the United States Department of Defense and is calculated based on local private-sector rental market data; and 

 

WHEREAS, according to the US Department of Defense website, the current BAH for an active-duty military member stationed in Hawaii ranges from $2,598 to $5,040 per month depending on their rank and experience; and 

 

WHEREAS, in a supply-constrained rental market such as Hawaii’s, large-scale federally funded housing allowances may contribute to upward price anchoring, reduced affordability for non-subsidized local residents, and the potential segmentation of the rental market; and 

 

WHEREAS, prior statewide housing studies have examined military housing demand in Hawaii but have not comprehensively analyzed the specific effect of federal housing allowances on rental price trends, landlord pricing behavior, or housing availability for non-military residents; and 

 

WHEREAS, a clearer understanding of the relationship between federal housing allowances and Hawaii’s rental market would assist policymakers in evaluating housing affordability challenges and developing appropriate housing policies; now, therefore, 

 

BE IT RESOLVED that the Senate of the Thirty-third Legislature of the State of Hawaii, Regular Session of 2026, requests the Department of Business, Economic Development, and Tourism (DBEDT), in collaboration with the University of Hawaii Economic Research Organization (UHERO) and other appropriate stakeholders, conduct a study on the impact of federal housing allowances, including Basic Allowance for Housing, on rental market conditions in Hawaii; and 

 

BE IT FURTHER RESOLVED that the study examine: 

 

1. An econometric analysis of the relationship between federal housing allowance rates and rental price trends by island and county; 

 

2. An evaluation of whether rental prices cluster around housing allowance levels in communities near military installations; 

 

3. An assessment of the degree to which federal housing allowances influence landlord pricing behavior in high-demand submarkets; 

 

4. A comparison of rental price growth in areas with high concentrations of military households versus comparable areas with lower concentration; 

 

5. An examination of whether housing allowances indirectly displace local working families from certain neighborhoods; and 

 

6. Policy options, if any, that may mitigate distortion effects while respecting federal authority and maintaining cooperative state-federal relations; and 

 

BE IT FURTHER RESOLVED that the study also evaluate the potential economic benefits associated with federal housing expenditures in Hawaii, including contributions to local landlords, property tax revenues, and related economic activity; and 

 

BE IT FURTHER RESOLVED that the study also quantify the overall economic impact of federal housing expenditures in Hawai i to provide a balanced assessment of both costs and benefits; and 

 

BE IT FURTHER RESOLVED that DBEDT is requested to submit a report of its findings and any recommendations to the Legislature no later than twenty days prior to the convening of the Regular Session of 2027; and 

 

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Governor, the Director of DBEDT, the Executive Director of UHERO, and the Hawaii congressional delegation. 

 

 

 

	OFFERED BY:	_____________________________

 

 

 

Report Title: 

Active-Duty Military Base Allowance for Housing; Impact Study