Hawaii is seen by many as a paradise, a destination to escape from it all when, in reality, some state residents appears to be ready to leave.
In the past year, 13,000 Hawaiians have chosen to leave the island for other locales. Those seeking explanations for the exodus have been quick to put it on COVID-19. However, the trend was already in place and the reasons pointed to the state’s economy and taxes.
The 20th Grassroot Institute of Hawaii reported Keli’i Akina, president of the Institute, said the University of Hawaii Economic Research Organization expects the state will lose an additional 20,000 people by 2022.
"That has nothing to do with the COVID crisis, although it will get worse with the COVID crisis," Akina said. "That has to do with the way we tax our people. That has to do with the way we regulate our businesses. That has to do with the lack of economic vitality that we have in our state. Those are the long-term problems that have to be addressed. And the same thing is true in terms of providing for Native Hawaiians."
Akina said it will boil down to the fundamental economic conditions within the state, which means the state will need good political leadership to stem the second fastest population decline in the nation.
Overall, the state is third in the residents leaving, behind New York and Illinois.
“It’s a sad thing but that many people at all ends of the economic spectrum are having to leave the state,” Akina said on the "Mike Buck Show." “It’s just too expensive.”
A particular concern with the younger generation has emerged, as those leaving for education have a tendency to not return to the islands.
“We used to talk about the brain drain and that used to refer to young people; who would leave Hawaii for opportunities in college and to start their career and get enough money to get a mortgage,” Akina said. “Now, it’s happening to all sectors. We’ve got the young people who are leaving and not coming back. We’ve got middle-aged workers who are leaving and not coming back. And we’ve got the elderly, our kupuna, who can’t survive here because it’s so expensive.”
Akina pointed out the Hawaiians are leaving for Nevada, Arizona, Idaho, Utah and Texas because resident in those states pay lower taxes and tend to be more business friendly. Problems also extend into the housing market homes in Hawaii are more expensive than most mainland states.
“I think that’s number one, it’s housing and that’s a sad thing because we don’t actually have to have the housing crisis we have,” Akina said. “Our research has shown that we have an artificial scarcity of land. We only build 5% of all the land, 95 is set aside for watershed reserve and for agriculture.
“Even if you took a tiny percentage of that 1 or 2 percentage points, you could increase the supply of land and have more housing. But our laws are such that it’s just too difficult.”