The military just got a 7.3 per-cent increase in their housing allowance. This should have a significant impact on rents in Hawaii, and to a lesser extent on home sales as we have such a large number of military families living in Hawaii, particularly Oahu. These new rates go into effect on January 1. I will be interested in seeing how this will impact things in Hawaii.
For enlisted personnel, this is an increase of about $83 per month. A soldier, sailor, marine or airman in the grade E-4 with dependents living in Hawaii will receive about $1,985 per month or about $60 more than this year. Non-Commissioned Officers in the grade E-8 with a family will receive about $2,650 a month.
While this is a necessary step in assuring that our military members can find suitable homes to live in while they are stationed in Hawaii, it will tend to make it increasingly more difficult for our local population to find affordable rentals. Affordable housing in Hawaii is a real problem for our local population.