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

The Hawaii Appleseed Center is urging the Honolulu City Council to adopt a 3-5% empty-homes tax (EHT) to address Oahu’s housing crisis, where over 80% of renters spend 30% or more of their income on housing. Bill 46 would impose a 3% tax on homes vacant for over six months annually.

Appleseed’s report highlights how non-resident investors are driving up prices and reducing rental availability, with 35,000 homes sitting vacant. The tax could generate $183-$305 million annually for affordable housing. Appleseed recommends using the EHT to curb speculative investments and help local families find affordable homes