Kahuina Project to Bring 861 Units — Including 60% Affordable — to Kakaako This Year

A major affordable housing development is set to transform a key block in Kakaako, offering hope for local residents priced out of one of Honolulu’s most rapidly gentrifying neighborhoods.

Stanford Carr Development’s Kahuina project, planned for Block C of the Our Kakaako master development, is expected to break ground in 2026 with 861 mixed-income residential units. The standout feature: 60% of the units will be designated as workforce and affordable housing, bucking the luxury trend that has dominated the area’s recent development boom.

“This project represents exactly what Kakaako needs — housing that actual working families can afford,” said Tom Yamachika, a longtime Honolulu housing advocate. “When you see luxury towers selling units for $1 million and up, a project like Kahuina becomes essential for maintaining economic diversity in our urban core.”

The Kahuina development will rise on a prominent site bounded by Ala Moana Boulevard, Kamakee Street, and Auahi Street, positioning it at the heart of the rapidly evolving neighborhood. The location offers residents easy access to both downtown Honolulu and the Ala Moana Shopping Center, along with emerging retail and dining options throughout Kakaako.

Addressing Kakaako’s Affordability Crisis

The project comes as Kakaako has increasingly become synonymous with luxury high-rises catering to wealthy buyers, including significant foreign investment. Recent developments like Ward Village and Ae’o have pushed median home prices well beyond the reach of most local families, with some penthouses selling for more than $10 million.

Kahuina’s mixed-income approach stands in stark contrast to this trend. The affordable and workforce housing units will be available to families earning between 80% and 140% of the area median income, targeting essential workers like teachers, nurses, and public safety employees who have been largely shut out of new Kakaako developments.

The Hawaii Community Development Authority, which oversees development in Kakaako, has increasingly emphasized affordable housing requirements in recent years. However, many developers have chosen to pay in-lieu fees rather than include affordable units on-site, contributing to the neighborhood’s luxury reputation.

Stanford Carr’s Track Record

Stanford Carr Development brings significant experience to the project, having previously developed several mixed-income communities across Oahu. The company has built a reputation for creating housing that serves local families while maintaining quality construction and design standards.

The developer’s approach to Kahuina emphasizes community integration, with affordable and market-rate units distributed throughout the building rather than segregated into separate sections. This design philosophy aims to create a truly mixed-income community rather than simply checking regulatory boxes.

The project will also incorporate retail space on the ground floor, potentially bringing neighborhood-serving businesses like a grocery store, pharmacy, or local restaurants that have been lacking in parts of Kakaako as luxury developments have prioritized high-end retail.

Timeline and Development Process

While groundbreaking is anticipated for 2026, Stanford Carr Development is currently working through the final permitting and approval processes with the Hawaii Community Development Authority. The timeline reflects the complex regulatory environment for large-scale affordable housing projects, which must meet additional requirements for income verification and long-term affordability controls.

The development team is also coordinating with city infrastructure improvements, including potential upgrades to nearby streets and utilities to accommodate the increased density. These infrastructure considerations are particularly important given Kakaako’s ongoing transformation from an industrial area to a residential neighborhood.

Construction is expected to take approximately three years once groundbreaking occurs, with the first residents potentially moving in by 2029. The project will be built in phases, with some units becoming available before the entire development is complete.

Impact on Honolulu’s Housing Crisis

For Honolulu residents struggling with the city’s housing affordability crisis, Kahuina represents a significant opportunity. The 861 units will add substantial inventory to the market, with the majority priced for working families rather than luxury buyers.

The project also sets an important precedent for future Kakaako development, demonstrating that mixed-income housing can be financially viable in the neighborhood. This could influence other developers to pursue similar approaches rather than focusing exclusively on luxury markets.

As Kakaako continues its evolution into Honolulu’s densest residential neighborhood, projects like Kahuina will be crucial for ensuring the area serves the broader community rather than becoming an enclave for the wealthy. For local families who have watched their city become increasingly unaffordable, this development offers a rare chance to remain in the urban core where jobs and services are concentrated.