Oahu’s Rental Housing Market Update

An update of Oahu’s rental housing market from the Honolulu Advertiser.

Rental housing costs on O’ahu are expected to decline more this year than they have in many years, according to a survey that has identified one silver lining in the state’s faltering economy. The average asking rent for homes on O’ahu was $1,704 in January, down $124 from last year’s monthly average of $1,828, according to a survey by local housing market researcher Ricky Cassiday.

The 6.8 percent drop follows three years of roughly flat rental rates that occurred while the local housing market remained relatively stable after a five-year boom in which average monthly rental rates soared by almost $900 from 2000 to 2005.

Rents will likely continue to fall over the next few years in reaction to the local economic contraction that has reduced the capacity of households to shoulder expenses, Cassiday said.

http://www.honoluluadvertiser.com/article/20090317/NEWS01/903170353