861-Unit Kahuina Tower Set to Break Ground in Kakaako — With 60% of Units Affordable

A massive affordable housing project is set to transform Kakaako’s skyline as Stanford Carr Development prepares to break ground on the 861-unit Kahuina Tower in 2026. The mixed-use development represents one of the most significant affordable housing commitments in the neighborhood’s recent history, with 60% of its units designated as workforce and affordable housing.

Located on Block C in the heart of Kakaako, the Kahuina project will rise as a towering addition to Honolulu’s fastest-growing urban district. The development plans call for 516 affordable and workforce housing units alongside 345 market-rate condominiums, creating a rare mix that addresses the city’s housing crisis while maintaining market viability.

The project also includes 42,000 square feet of commercial space at ground level, designed to activate the streetscape and provide essential services for residents. This retail component aligns with the Hawaii Community Development Authority’s vision for creating a walkable, mixed-use neighborhood that reduces dependence on cars.

Addressing Honolulu’s Housing Shortage

The Kahuina Tower’s affordable housing commitment stands out in a neighborhood where luxury condominiums have dominated new construction for the past decade. With median home prices in Honolulu exceeding $800,000, workforce housing units priced for local families earning 80-140% of area median income could provide crucial relief.

“Projects like Kahuina demonstrate that developers can create financially viable developments while addressing our community’s most pressing need — housing that working families can actually afford,” said Maria Santos, executive director of the Affordable Housing Alliance of Hawaii.

The development’s workforce housing component targets teachers, firefighters, nurses and other essential workers who have been increasingly priced out of urban Honolulu. These units will be deed-restricted to ensure long-term affordability, preventing speculation that has plagued other affordable housing initiatives.

Kakaako’s Continued Evolution

The Kahuina project represents the latest chapter in Kakaako’s dramatic transformation from an industrial district to Honolulu’s premier urban neighborhood. Over the past 15 years, the area has seen more than $4 billion in private investment, creating thousands of housing units and transforming the landscape between downtown Honolulu and Ala Moana.

Block C sits strategically between the established Kakaako Makai area near the waterfront and the newer developments rising mauka toward King Street. The location provides easy access to downtown employment centers while maintaining proximity to Kakaako’s growing network of parks, including the popular Keeaumoku and Kakaako Waterfront parks.

The tower will rise within walking distance of the future Civic Center rail station, positioning residents to take advantage of Honolulu’s expanding transit system. This transit-oriented development approach aligns with the city’s efforts to create denser, more sustainable urban communities.

Market Impact and Timeline

Stanford Carr Development has built a reputation for delivering mixed-income projects throughout Hawaii, including several developments that blend market-rate and affordable units. The company’s track record includes successful projects on neighbor islands and previous Kakaako developments.

Pre-construction activities are expected to begin in late 2025, with groundbreaking scheduled for early 2026. The development timeline anticipates completion by 2029, adding substantial inventory to both the affordable and market-rate housing stock during a critical period for Honolulu’s growth.

The project’s financing structure combines private investment with public incentives designed to make affordable housing development economically feasible. This public-private partnership model has become essential for delivering affordable housing in Hawaii’s challenging development environment.

Infrastructure and Community Benefits

Beyond housing, the Kahuina Tower will contribute to Kakaako’s infrastructure improvements through development impact fees and community benefit contributions. These funds support neighborhood-wide improvements including parks, transportation infrastructure, and affordable housing preservation.

The project’s commercial space is designed to accommodate local businesses, potentially including grocery stores, restaurants, and service providers that serve both residents and the broader Kakaako community. This ground-floor activation creates the street-level vibrancy that urban planners say is essential for successful dense developments.

For Honolulu residents, the Kahuina Tower represents both promise and precedent. If successful, it could demonstrate a replicable model for future developments that balance market realities with community needs. The project’s 2026 groundbreaking will mark a significant milestone in Kakaako’s evolution and Honolulu’s broader efforts to address its housing shortage through innovative public-private partnerships.