Hawaiʻi's children are facing increasing economic hardship, with the state ranking poorly in housing stability and parental employment, according to the 2025 KIDS COUNT Data Book. This report, developed by the Annie E. Casey Foundation, offers a critical analysis of how children are faring in the post-pandemic era. The findings have significant implications for Hawaii's business landscape, potentially impacting workforce development, consumer spending, and the overall economic health of the islands.
One of the key issues highlighted by the report is the high cost of housing, which places a heavy burden on families and contributes to child poverty. The strain on families is further exacerbated by diminishing parental employment security, creating a cycle of instability that impacts various sectors. A report by State of Reform indicates that Hawaii ranks in the bottom 10 states for children living in households with high housing cost burdens. This financial strain can affect children's well-being, education, and future opportunities, indirectly affecting Hawaii's future workforce.
The impact of housing instability is particularly pronounced in the wake of events like the Lahaina wildfires. According to Maui Now's recent report, the homeless rate in Hawaii has soared to the worst in the nation following the devastation. This situation underscores the urgency of addressing the housing crisis and its broader economic consequences. The report emphasizes that when the housing supply shrinks, prices increase, residents leave, and homelessness grows, further affecting the business environment.
Entrepreneurs and investors in Hawaii need to consider these challenges when making strategic decisions. The economic well-being of families directly influences consumer behavior and the viability of local businesses. The increased cost of living and financial instability can lead residents to take on debt or consider leaving the state. A recent article in Civil Beat highlights that many Hawaii residents are struggling to make ends meet and are relying on credit to cover basic expenses. This suggests investors need to be aware of potential changes in consumer spending patterns and business viability in the near future.
The KIDS COUNT report also shows the Hawaii Children's Action Network is dedicated to addressing the root causes of poverty and inequity to help children and their families, a non-profit with a mission to advocate for children in Hawaii. A report by Hawaii Children's Action Network (HCAN) addresses the root causes of poverty and inequity with the goal of helping children and their families.
Moreover, the economic strain and high cost of living present a challenge to attracting and retaining a skilled workforce. Hawaii needs to focus on initiatives that support families, improve housing affordability, and create better employment opportunities to ensure a sustainable economic future. This requires a collaborative effort from policymakers, businesses, and community organizations to address the underlying issues impacting keiki and the overall economic health of Hawaii. This makes affordable housing and job creation critical investment areas for entrepreneurs and investors looking to contribute to Hawaii's long-term prosperity.
