Forward-Thinking Offers Unique Approach To Housing Shortage

By Lisa Scontras

Addressing Hawaii’s affordable housing crisis requires creative solutions and one of Hawaii’s most recognized residential developers is offering an innovative approach to the island’s affordable housing shortage.

At D.R. Horton Hawaii’s master-planned community of Hoopili — an 11,750- home development under construction between Ewa Beach and Kapolei — a novel upgrade is being offered with some of the single-family homes in the subdivisions of Aulu and Iliahi: the option of an accessory dwelling unit (ADU).

An ADU is a second home permitted on a single-family lot where zoning normally only allows for one. This innovation is in contrast to a traditional “ohana unit,” which is restricted to including only a wet bar and must be attached to the roof of an existing home. ADUs are complete living spaces with a kitchen, bathroom and sleeping area, and either attached or completely detached. The advantage of an ADU to the single-family homebuyer is they have the flexibility to house family or can elect to offset their mortgage costs by renting out the unit.

“Accessory Dwelling Units create opportunities for homeowners to be a part of the solution to affordable housing,” said Jenny L. Brady, 2019 president of the Honolulu Board of Realtors®. “On one hand, ADUs can help fulfill the great demand for available rental housing or shelter for multigenerational living arrangements while providing additional income or savings to homeowners. There are multiple approaches to solving our shortage of housing in Hawaii. ADUs are an excellent option island-wide.”

At D.R. Horton’s Hoopili, ADUs were part of nearly 13 percent of recent new-home purchases. And that number is expected to grow. “D.R. Horton is committed to providing a variety of home styles to help the working families of Hawaii achieve a comfortable sustainable lifestyle and to share that lifestyle with others,” said Mary Flood, senior vice president of sales at D.R. Horton Hawaii. “ADUs are a perfect example of this concept. To date at Hoopili, D.R. Horton has built approximately 320 single-family homes with about 40 ADUs. Overall, D.R. Horton expects that at least 10 percent of the single-family homes at Hoopili will have ADUs.

“One plan style offers a three-bedroom, two-and-a-half-bath home plus a 341-square-foot ADU,” Flood said. “The ADU adds about $65,000 to the price of the home and has a fullsize kitchen and bath in addition to the living area. “In essence, the ADU functions as a studio. One buyer is a mom who lives in the ADU and has her daughter and family living in the main house. Another buyer has a college-age son who occupies the ADU. It can also be rented out for supplemental income.”

Giving homebuyers the option of creating affordable housing in their own backyards has great potential in helping to relieving Oahu’s shortage of affordable housing. Whether the owner opts to use their ADU to downsize, to house family, or rent for additional income, buyers are noticing the trend.

“Buyers have been interested in properties that have separate units on the property allowing them to rent it out to offset their mortgage cost,” said Kalama Kim, principal broker at Coldwell Banker Pacific Properties. “Some homes have already completed the ADU permitting process, which becomes very attractive to buyers Construction and sales continue at Hoopili, with the next phase at Olena scheduled for release this month, featuring multigenerational, contemporary- styled homes. Hoopili is ultimately expected to include five schools, community gardens, as well as shopping and dining options, with convenient access to rail lines.