Ross Isokane is an accountant in the financial reporting field and is also a member of the Downtown-Chinatown Neighborhood Board on O‘ahu.
We need to keep the housing we have and the housing we build available to local families.
The Honolulu Charter Commission could put a widely popular idea on the November ballot for O‘ahu voters. Nearly every candidate for public office addresses the affordable housing crisis as one of our most pressing issues.
And many of those candidates agree that while building more housing must be part of the solution, it can’t be the only focus. Gov. Josh Green stated in 2026, “But we know that building alone won’t solve this challenge. We also have to return more homes to local families…”
Ideas showcases stories, opinion and analysis about Hawaiʻi, from the state’s sharpest thinkers, to stretch our collective thinking about a problem or an issue. Email news@civilbeat.org to submit an idea or an essay.
We need to keep the housing we have and the housing we build available to local families. But periodic reporting from our state economists shows that out-of-state buyers account for a significant share of housing transactions. And many of these units are widely assumed to sit vacant most of the year — neither the owner’s primary residence nor a long-term rental for local families.
In a housing crisis, homes and condominiums built as residences should house local families, not be held by investors as speculative investments or illegal vacation rentals.
Empty Homes Tax Discourages Investor Activity
An empty homes tax has been proposed multiple times by the Honolulu City Council to discourage this behavior, which prevents our limited housing stock from being put to its intended use.
The most recent attempt was Bill 46, introduced on Aug. 1, 2024. However, at the July City Council hearing, it was not taken up for a final vote and is expected to die at the end of the month.
For those of us who view excessive, investor-driven demand as a serious issue (and see the empty homes tax as one solution to go along with building more), once again, the City Council has failed us.
We are not in the minority; the empty homes tax has wide support. A 2024 survey by Ward Research Incorporated found 74% of O‘ahu residents support taxing residential properties that sit vacant at a higher rate than occupied homes (to encourage renting them to local families).
The Honolulu Charter Commission could ask voters about an empty home tax come November. Pictured is Honolulu Hale. (Cory Lum/Civil Beat/2021)
To date, nine O‘ahu neighborhood boards (Downtown-Chinatown, Makakilo/Kapolei, Ala Moana/Kaka‘ako, Pearl City, McCully-Mō‘ili‘ili, Makiki/Punchbowl, Mililani Mauka/Launani Valley, Kailua, and Kahalu‘u) have adopted similar resolutions in support.
But despite the City Council failing to do the right thing, we the people may still decide the matter ourselves in the upcoming November election.
Charter Commission Could Let Voters Decide
Currently, the Honolulu Charter Commission is in the final stages of determining which of the nearly 300 submissions will appear on the November ballot.
Proposal 170 (“P170”) has advanced to the final round and would direct the City Council to establish an Empty Homes Tax (with various details such as reasonable exemptions determined at their discretion). The substantial revenues generated — potentially $290 million over 10 years by some estimates — would be dedicated to building affordable housing for local families.
However, P170’s place on the ballot is far from assured. The decision rests with the 13 appointed commission members. Final approval requires a supermajority — nine of the 13 commissioners must vote yes at the final reading. As of the July 13 meeting, it has eight: all six council-appointed commissioners and two of the seven appointed by the mayor.
It stands just one vote short.
Mayor Opposes It, But Appointees Can Vote Conscience
As an additional challenge, Mayor Rick Blangiardi has signaled he now opposes an Empty Homes Tax — a reversal from his 2020 campaign statements in support. Recent coverage of the upcoming Council district races reported he isn’t in favor and wouldn’t sign a bill if it reached his desk.
Accordingly, leaders in his administration have filed multiple opposition letters through the public testimony portal to urge commissioners to keep P170 off the ballot.
But the administration cannot control how its seven appointees actually vote. The commission members are free to decide for themselves what best serves the people of Honolulu. And on an issue so critical to our housing crisis, my belief is simple: let the people decide.
To be clear, the proposal is still very much alive — it cleared a preliminary vote on July 13 and now awaits the final supermajority vote.
One more commissioner voting “yes” puts the Empty Homes Tax where it belongs: on your ballot, for you to decide in November.
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There is absolutely no good reason for a government to tax its people in effort to change our freedom of choice. Where is the line drawn?
Kilika·
6 hours ago
While I don't per se oppose a vacant homes tax, I would appreciate proponents providing some actual statistics beyond dark windows in high rises. Tax policy should be driven by facts, not emotions.
GeeTee·
7 hours ago
"investor-driven demand as a serious issue"Of course the Mayor and the Honolulu City Council are against any threats that may bring down the outrageously high real estate valuations, because then tax receipt revenue would decline, which a growing and burgeoning bureaucracy will not allow if they can.
Ideas is the place you'll find essays, analysis and opinion on public affairs in Hawaiʻi. We want to showcase smart ideas about the future of Hawaiʻi, from the state's sharpest thinkers, to stretch our collective thinking about a problem or an issue. Email news@civilbeat.org to submit an idea.