Kakaako’s Kahuina Project Breaks Ground in 2026 with 861 Units — 60% Designated Affordable
Three major residential projects are breaking ground in Kakaako this year, marking 2026 as the most transformative construction period in the urban neighborhood’s ongoing evolution. Leading the charge is Stanford Carr Development’s Kahuina project, which will add 861 units to the area with 60% designated as affordable workforce housing.
The $420 million Kahuina development, slated to rise on a 4.2-acre site near the intersection of Ala Moana Boulevard and Ward Avenue, represents the largest single addition of workforce housing in Kakaako’s master-planned transformation. The project will deliver 517 affordable units alongside 344 market-rate condominiums across two towers.
“Kahuina addresses one of Honolulu’s most pressing challenges — providing quality housing options for our working families who are the backbone of our community,” said Stanford Carr, president of Stanford Carr Development. “This project demonstrates that we can build responsibly while meeting the diverse housing needs of island residents.”
Part of Broader Construction Boom
Kahuina joins two other major developments beginning construction in 2026: the 650-unit Waiakoa project by Alexander & Baldwin and the 445-unit Kali’u development by Kamehameha Schools. Combined, these three projects will add over 1,900 residential units to the neighborhood over the next four years.
The timing coincides with the Hawaii Community Development Authority’s upcoming May 6 board meeting, where commissioners will review infrastructure improvements and zoning adjustments needed to support the construction surge. The HCDA has been coordinating with city planners to ensure adequate utilities, transportation access, and community amenities keep pace with residential growth.
Kakaako’s master plan, originally approved in 2011, envisioned the former industrial district as a mixed-use urban community housing 25,000 to 30,000 residents. The neighborhood has already seen significant development with projects like Ward Village, but 2026 marks the first year when multiple large-scale residential developments will launch simultaneously.
Workforce Housing Focus
What sets Kahuina apart is its emphasis on workforce housing, targeting households earning 80% to 140% of area median income. This income range covers teachers, nurses, police officers, and other essential workers who often find themselves priced out of new developments despite steady employment.
The affordable units will be permanently deed-restricted, ensuring long-term availability rather than temporary affordability that expires after a set period. One-bedroom affordable units are expected to start around $485,000, while two-bedroom affordable units will begin near $625,000.
Stanford Carr Development has incorporated local cultural elements into the project design, including a community gathering space inspired by traditional Hawaiian meeting areas and landscaping featuring native plants. The development will also include 15,000 square feet of ground-floor retail space intended for local businesses.
Infrastructure Challenges
The simultaneous launch of three major projects has prompted concerns about infrastructure capacity in an area still transitioning from industrial to residential use. Ward Avenue and Ala Moana Boulevard already experience heavy traffic during peak hours, and the addition of nearly 2,000 new housing units will significantly increase vehicle trips.
The HCDA has allocated $45 million for road improvements and utility upgrades in the immediate Kakaako area, including traffic signal optimization and water line expansions. The authority is also coordinating with Honolulu’s planned Bus Rapid Transit system, which will include stations near all three new developments.
Construction of Kahuina is expected to take 42 months, with the first residents moving in by early 2030. The project will be built in phases, with the affordable housing tower completed first to minimize displacement pressure on existing residents.
Long-term Neighborhood Impact
Real estate analysts project that the three new developments will help stabilize Kakaako’s housing market by increasing supply while maintaining a significant affordable component. The neighborhood’s proximity to downtown Honolulu, Ala Moana Center, and planned transit connections makes it attractive to both residents and employers.
For Honolulu residents, these developments represent a rare opportunity to live in a centrally located, walkable neighborhood without the premium prices typically associated with urban living in Hawaii. The success of Kahuina and its neighboring projects could serve as a model for similar workforce housing initiatives in other parts of Oahu.
With groundbreaking ceremonies planned for late summer 2026, Kakaako residents can expect significant construction activity over the next four years as the neighborhood transitions into one of Oahu’s most densely populated residential areas.
