DBEDT Releases Report on Consumer Debt in Hawaii

Posted on May 22, 2017 in News

For Immediate Release: May 22, 2017

HONOLULU—The Department of Business, Economic Development and Tourism (DBEDT) released a report today, “An Analysis of Consumer Debt: How does Hawaii Compare with the Nation?” The report examined various consumer debt categories.

The report highlights why our per capita debt is high, which is due to high housing prices in Hawaii, with 77 percent of our debt from mortgage debt.

Hawaii’s home ownership increased 10 percentage points from 46.9 percent in 1970 to 56.9 percent in 2015 while the U.S. home ownership increased less than one percentage point from 62.9 percent to 63.8 percent during the same time period.

Chief State Economist Dr. Eugene Tian noted that the high mortgage debt may also have negative impacts, including less consumers spending on other goods and services by home owners, increasing rental payment for renters, and the leakage of mortgage payment to out-of-state financial institutions.

Following are some of the highlights of the report:

  • Hawaii’s total consumer debt per capita increased from $51,810 in 2005 to $67,010 in 2015, ranking it second highest in the nation.
  • For mortgage debt per capita, Hawaii has been steadily increasing in the state rankings, from the sixth highest state in 2005 to the highest state in 2015.
  • Hawaii ranks low among states for auto loans per capita, while defaults for those with auto loans are close to U.S. average.
  • Hawaii residents have relatively high credit card debt. Hawaii ranked fourth in the nation in 2010 and 2015 for credit card debt per capita.
  • Hawaii ranks the lowest in the nation for per capita student debt.
  • For the other debt category (home equity lines of credit, consumer cards, and consumer-financed debt), Hawaii leads the nation for the average amount per capita at $5,300. This partially reflects Hawaii’s high residential real estate values and the home equity loan balances supported by these high values.

The report can be downloaded here. Adobe Acrobat file

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Media Contact:

Christine Hirasa
Department of Business, Economic Development and Tourism
Phone: (808) 587-9006
Mobile: (808) 286-9017
Website: dbedt.hawaii.gov