Kahuina Breaks Ground in Kakaako With 861 Units, 60% Affordable

Kakaako’s skyline is set for another dramatic transformation as Stanford Carr Development breaks ground on Kahuina, an ambitious 861-unit residential tower that will bring the neighborhood’s largest commitment to affordable housing yet.

The project, slated to rise on Block C of the Hawaii Community Development Authority’s master-planned district, will dedicate 60% of its units to workforce and affordable housing — a unprecedented ratio for new Kakaako developments. Construction is expected to begin in 2026, marking a significant milestone in the area’s evolution from industrial wasteland to urban residential hub.

Kahuina will feature 861 residential units across multiple income levels, with roughly 517 units reserved for families earning between 80% and 140% of area median income. The tower will also include 42,000 square feet of ground-floor commercial space, continuing Kakaako’s trend toward mixed-use development.

“This project represents exactly what we envisioned for Kakaako — creating housing opportunities for local families while building vibrant, walkable neighborhoods,” said James Koshiba, a spokesperson for the Hawaii Community Development Authority. “The 60% affordable component sets a new standard for large-scale development in urban Honolulu.”

The Kahuina announcement comes as Kakaako prepares for what could be its most intensive construction period to date. The 1,032-unit Waiakoa project is also expected to break ground this year, meaning nearly 2,000 new residential units will be under construction simultaneously in the 600-acre district.

Building on Kakaako’s Master Plan

The developments align with the Hawaii Community Development Authority’s long-term vision for transforming Kakaako into a dense, mixed-use urban district. Since the authority began actively developing the area in the 1980s, the former industrial zone between downtown Honolulu and Ala Moana has slowly filled with high-rise towers, parks, and commercial spaces.

Recent projects like the Ward Village development by Howard Hughes Corporation have established Kakaako as Oahu’s premier luxury residential market. However, critics have long argued that market-rate towers have pushed out working families and failed to address Honolulu’s affordable housing crisis.

Kahuina’s affordability commitment represents a shift in development patterns, driven partly by updated HCDA regulations requiring higher percentages of workforce housing in new projects. The 60% ratio far exceeds typical inclusionary housing requirements in other Honolulu neighborhoods.

Stanford Carr Development, known for projects like Modera and Kapiolani Residence, has not yet released detailed unit configurations or pricing information for Kahuina. However, workforce housing units will likely target households earning between $67,200 and $117,600 annually, based on current area median income calculations.

Infrastructure Challenges Ahead

The simultaneous construction of Kahuina and Waiakoa raises questions about infrastructure capacity in an area already straining under rapid development. Traffic congestion on Ala Moana Boulevard and Kapiolani Boulevard has worsened significantly as Kakaako’s population has grown from fewer than 1,000 residents in 2010 to an estimated 8,000 today.

The city is planning several transportation improvements, including protected bike lanes along King Street and enhanced bus service through the area. However, these upgrades may not be completed before the new residential towers bring thousands of additional residents to the district.

Water and sewer infrastructure will also face increased demand. The Board of Water Supply has identified Kakaako as a priority area for system upgrades, but major improvements to aging underground pipes could take years to complete.

Local residents have expressed mixed feelings about the continued density increases. While many support the affordable housing component, concerns persist about traffic, parking, and the loss of Kakaako’s emerging neighborhood character.

Market Impact and Timeline

Combined, Kahuina and Waiakoa will add nearly 2,000 residential units to Honolulu’s housing stock over the next five to seven years. This represents the largest single influx of new housing since the completion of several major Ward Village towers in the late 2010s.

The projects could help ease Oahu’s chronic housing shortage, particularly in the workforce housing segment that has been underserved by recent development. However, the timeline means relief won’t arrive for current renters and homebuyers struggling with today’s market conditions.

For Kakaako itself, the developments signal the district’s maturation from an experimental urban village into a major residential neighborhood. With these projects, the area’s population could approach 15,000 residents within a decade — transforming it into one of Honolulu’s largest residential communities outside of established neighborhoods like Kalihi and Kaimuki.

As ground breaks on these massive projects, the success of Kakaako’s affordable housing experiment will be closely watched by developers, policymakers, and housing advocates across Hawaii. The outcomes could influence development patterns throughout urban Honolulu for years to come.