Has Kakaako Lost Its Way? A Look at Hawaii's Vision for Growth and Housing

Compliments of

Alan Van Zee

President | NMLS #: 297154

Hawaii Mortgage Company, Inc.

Company NMLS #: 232582

alan@hawaiimortgage.net • www.hawaiimortgage.net

Alan Van Zee is one of the top producing Mortgage Originators in the state, originating over $2,000,000,000 to date. He has written and published this weekly newsletter for the past 18 years. It is the most widely read mortgage, real estate, and finance publication in Hawaii.

Hawaii Mortgage Company, now in our 26^th year of providing mortgages to the people of Hawaii, is proud to have a complaint-free history. We make sure our clients are happy!

News and Insight

For the Weekend of June 20^th, 2026

Hawaii’s Most Read Mortgage, Real Estate, and Finance Publication for 18 Years

Volume 18 – Issue 38

Was This the Vision of My Father?

I grew up watching the original Hawaii 5-0 with Jack Lord and was always fascinated by the scenes in the opening credits depicting how Hawaii used to look and feel like in the late 1960’s. Maybe it was the music. Maybe it was the fast edits from scene to scene. But those images own a permanent space in the storage north of my shoulders. You can still catch episodes on one of the 500 cable channels. I must admit at those rare times I need to relax and channel surf and come upon an episode, I usually get sucked in and call the surf session pau.

It was a Sunday morning in 1977 when I was driving with my dad through Kakaako. We were on Waimanu Street or Maybe Kawaihao. My dad always took the side streets. He spent a fair amount of his time in the area during the 50’s and 60’s selling cars on Kapiolani Blvd. He knew the area well. As we approached Ward Avenue from that side street, my dad casually pointed out another large parcel being redeveloped. That’s when I said to him “…I guess this area of town looks vastly different from what you remember from the 50’s?” That’s when we took a 20-minute detour from where we were going to instead drive around the Kakaako and Kapiolani areas. My dad expressed both glee and sorrow as he drove me around to point out what “landmarks” of the 50’s and 60’s had been redeveloped. His glee to relive the memories of his old stomping grounds were quickly replaced by sadness acknowledging a segment of his life that no longer existed.

As I have grown-up and now have kids of my own, and write about development in our islands, I often think back to that Sunday drive with my dad. What I focus on the most was how much he thought the area had changed from the 50’s to that Sunday in 1977. For me, now looking at what’s changed since 1977, or even 1997, I wonder what my dad would have thought of all the new development.

To me, I see Kakaako as our version of Hong Kong or Singapore. A landscape of towering condos that serve no purpose other than to block the view plane. When the plans were proposed to redevelop Kakaako we were led to believe that in exchange for booting out all the small businesses we’d get affordable housing. Good luck finding that small garage to fix your AC or replace a broken mirror anywhere in town. And you’ll also find it equally difficult to find a truly affordable condo with what’s displaced them.

I do find it a weird irony that we turned our south shore into something that resembles an Asian country, and what they’ve built can only be afforded by rich Asians. Kakaako is supposed to be open, welcoming, and promote a sense of gathering (for the people of Oahu). I find it cold, overpriced, and lacks parking. To say I rarely visit is being generous.

Other than sharing a story about my dad on Father’s Day, there is a deeper meaning and lessons to be learned about what our government leaders envision for the future of not only Oahu, but for our entire state. If you’ve read my newsletter for any length of time – I am pro-growth. By development must be done wisely and meet the needs of the citizens.

Maybe I’m just not a big fan of condos. For a large section of the population a condo is the best fit. But in my eyes, I wish to see kids grow up in neighborhoods with houses, tress, and grass – not an astroturf play area on the 6^th floor above the parking structure.

25 years ago, I was sitting with friends and the topic came up “…if you had all the money in the world, what’s the first thing you’d do with that wealth?” My response shocked my friends. I told them, “I’d buy the Sheraton Waikiki, tear it down, and build me a nice single-family home in its place.” I guess I do prefer homes over condos…

Happy Father’s Day to all the dads out there….!

And now the week’s economic news…….

Retail Sales Surge

Mortgage markets remained sensitive to movements in energy prices this week. Optimism surrounding a potential agreement to ease tensions in the Middle East helped push oil prices down to their lowest levels since March, reducing inflation concerns. The Fed meeting created volatility over two days but had little lasting impact. In addition, the reaction to a stronger than expected consumer spending report was muted. As a result, mortgage rates ended the week slightly lower.

As expected, the Fed left the federal funds rate unchanged on Wednesday, and the language favoring an easing as the next move was removed. Investors focused mainly on the latest "dot plots" which reflect individual officials' forecasts for future interest rates. In his first meeting as the new Fed Chair, Kevin Warsh declined to submit a dot plot, describing them as unhelpful for conducting monetary policy. The dot plots from the other 18 officials were split, with nine projecting at least one rate hike this year, eight no change, and one anticipating a rate cut. This was more hawkish (in favor of tighter monetary policy) than had been expected. Investors now have priced in one 25 basis point increase in the federal funds rate by the end of the year.

Consumer spending accounts for over two-thirds of U.S. economic activity, so the monthly Retail Sales report is a key measure of the health of the economy. While economists had anticipated that larger than usual tax refunds would provide an extra boost again this month, they also had to factor in that higher gas prices might drain some of that strength. The most recent report revealed that retail sales in May surged 0.9% from April, far above the consensus forecast.

Categories most responsible for strength this month included furniture stores, auto dealerships, and online retailers. Retail sales were a powerful 6.9% higher on a year-over-year basis, far outpacing both price increases and wage gains over that period. Supported by stock market gains, upper-income households continue to purchase at a rapid pace, while lower-income consumers are cutting back discretionary spending to focus on necessities. With the extra juice from tax refunds fading and the savings rate at a four-year low, investors will be keeping a close eye on spending trends in the coming months.

Next Week

Looking ahead, attention will remain fixed on the conflict in the Middle East and the proposed deal to ease tensions. Investors also will monitor comments from Fed officials about future monetary policy. For economic data, New Home Sales will come out on Wednesday. Personal Income and the PCE price index, the inflation indicator favored by the Fed, will be released on Thursday.

Until next week….

*** Please note that Freddie Mac publishes their weekly rate report on Wednesday mornings from data received Monday and Tuesday.

The graph above is intended to shown rate trends, and not “today’s current rate”. ***

Reviews From Our Past Clients

With every client, we promise to provide you with a comprehensive analysis of your mortgage needs, the best service possible, and the best rates we can find. We make it our mission to have every transaction close with our clients happy with the service we provided. Browse through the hundreds of reviews we’ve received from our clients posted on both Google and Zillow.com, and read what they thought of their experience using Hawaii Mortgage Company.

Google Link:

Hawaii Mortgage Company Review on Google.com

Zillow.com Link:

Hawaii Mortgage Company Reviews on Zillow.com

Our Rate Quote System is Available to You

Our automated rate quoting system is live. Now you can check rates and try different scenarios 24-hours a day. Remember, it’s just a computer. For non-standard rate quotes, such as construction, vacant land, and other specialty programs, you’ll still need to give a call.

Here’s the link: https://www.hawaiimortgage.net/todays-rates/