Kakaako’s Waiakoa Development to Break Ground in 2026, Bringing 1,032 Units — 60% Affordable
A new residential tower project in Kakaako is poised to deliver one of Honolulu’s most significant affordable housing commitments in recent years, with developers planning to break ground on the 1,032-unit Waiakoa development in 2026.
The dual-tower project, part of the Our Kakaako master-planned community near the popular SALT shopping and dining district, will reserve 60% of its units for workforce and affordable housing — a substantially higher percentage than most new developments in the rapidly gentrifying neighborhood.
Located on a 4.3-acre site bounded by Keawe Street and Cooke Street, Waiakoa will rise as two towers of 38 and 40 stories, housing a mix of studios, one-, two-, and three-bedroom units. The development also includes 68,000 square feet of ground-floor retail space and promises significant green space and community amenities.
“This represents exactly the kind of housing our community needs — market-rate and affordable units side by side, creating true economic diversity,” said Kakaako resident Maria Santos, who serves on the neighborhood board. “The question is whether working families will actually be able to qualify and afford these so-called affordable units.”
Breaking Down the Affordability Promise
The 60% affordable housing commitment translates to approximately 619 units reserved for households earning between 80% and 140% of Honolulu’s Area Median Income (AMI). For a family of four, that means annual household incomes ranging from roughly $76,000 to $133,000.
Under Hawaii’s workforce housing requirements, units designated for 80% AMI households would rent for around $1,900 for a one-bedroom, while those at 140% AMI could reach $3,300 monthly. Purchase prices for affordable units typically range from $400,000 to $700,000, depending on size and AMI targeting.
The remaining 40% of units will be sold at market rates, likely ranging from $800,000 to over $1.5 million based on comparable new construction in Kakaako. Recent sales at nearby Our Kakaako towers have averaged $1,200 per square foot.
Strategic Location in Evolving District
Waiakoa’s location positions future residents within walking distance of SALT at Our Kakaako, Whole Foods, and the growing collection of restaurants and retail along Ala Moana Boulevard. The site also provides easy access to downtown Honolulu and benefits from planned improvements to Kakaako’s transportation infrastructure.
The development sits within the Hawaii Community Development Authority’s jurisdiction, which has been pushing for higher affordable housing percentages in new projects. HCDA’s evolving master plan for Kakaako calls for 30% of all new residential units to be affordable, making Waiakoa’s 60% commitment particularly noteworthy.
Developer HiEstate Group, working with local partners, has emphasized community integration in their design approach. Plans include a public plaza, children’s play areas, and retail spaces intended to serve both residents and the broader Kakaako community.
Market Impact and Community Concerns
The project arrives as Kakaako continues its transformation from an industrial district to Honolulu’s densest residential neighborhood. Over the past decade, the area has added thousands of units, but most have catered to higher-income buyers and renters.
Housing advocates have long criticized Kakaako’s development pattern for displacing long-term residents and small businesses while failing to provide housing accessible to the teachers, nurses, and other essential workers who keep the island running.
Waiakoa’s affordable housing commitment could help address those concerns, but questions remain about long-term affordability controls and whether middle-income families can compete for units in what’s expected to be high demand.
Timeline and Next Steps
HiEstate Group expects to complete permitting and final design work through 2025, with construction beginning in early 2026. The phased development timeline suggests the first residents could move in by late 2028 or early 2029.
The project still requires final approval from HCDA and must navigate Honolulu’s complex permitting process. Community input sessions are planned for early 2024, giving Kakaako residents opportunity to weigh in on final design elements and community benefit packages.
For Honolulu’s housing market, Waiakoa represents both promise and pressure. If successful, its affordability model could influence other large-scale developments. If it falls short of its workforce housing goals, it may deepen skepticism about whether market-driven solutions can meaningfully address the island’s housing crisis.
The development’s impact will extend beyond its 1,032 units, potentially setting expectations for how Kakaako balances growth with community needs as the neighborhood approaches build-out over the next decade.
