Hawaii FEP - Western Pacific Fishery Council

Cost of Living Analysis: Ratio of Honolulu living costs compared to U.S. Averageat four income levelsIncomelevel 1Incomelevel 2Incomelevel 3Incomelevel 4Honolulu cost of livingindexed to U.S. average 192.9 171.6 161.9 155.1Rent, utilities 241.4 235.4 230.3 229.0Source: DBEDT 2005. Table 14.11Indeed, per capita Gross State Product is the same today as it was in 1990. Hawaii per capitaincome has fallen from 122.5% of the U.S. average in 1970 to 99% in 2005 (Figure 12). Much ofthis is attributable to housing costs, with the average single family house selling for $744,174 in2005, with the median being $590,000, the latter discrepancy also indicating the uneven natureof the housing industry in Hawaii over the past several years.Hawaii median household incomeRatio HI/USHawaii aspercent of U.S.Hawaii(dollars)125.0$80,000120.0$70,000$60,000115.0$50,000110.0$40,000105.0$30,000$20,000100.0$10,00095.0$0197519771979198119831985198719891991199319951997199920012003Figure 12: Hawaii Median Household Income, 1975-2005Tourism is a service industry, and as such, tends to have lower wage levels than manufacturing,for example. So the dominance of tourism means that many workers in Hawaii hold more thanone job, with 16% of the workforce reporting they work 49 or more hours per week (DBEDT2005. Table 12.38). Similarly, the benefits of the commercial economy are not spread evenlyacross either islands or ethnic groups in Hawaii. In 2004, 8.4% of Hawaii’s population wasbelow the poverty line (DBEDT 2005. Table 13.23). The effect of these conditions is that thevalue of common use resources, such as shorelines, forests, and the ocean, is important for bothsubsistence and recreational reasons.86