Kakaako’s Kahuina Project Eyes 2026 Groundbreaking — 861 Units, 60% Affordable
A massive mixed-use development in Kakaako is poised to deliver one of Oahu’s largest affordable housing projects in recent years, with Stanford Carr Development targeting a 2026 groundbreaking for the 861-unit Kahuina tower.
The project, slated for construction at the intersection of Cooke and South streets, will dedicate 60% of its residential units — roughly 517 apartments — to workforce and affordable housing categories. The remaining 344 units will be market-rate condominiums, creating a mixed-income community within walking distance of downtown Honolulu.
“This project represents exactly the kind of development Honolulu needs right now,” said Marcus Akimseu, executive director of the Oahu Island Housing Authority. “We’re seeing a developer step up with a significant commitment to working families who’ve been priced out of so many neighborhoods.”
The affordable units will target households earning between 80% and 140% of the Area Median Income (AMI), translating to annual incomes of roughly $79,000 to $138,000 for a family of four, based on current HUD guidelines for Honolulu County. These income brackets typically include teachers, nurses, firefighters, and other essential workers who often struggle to find housing near their workplaces.
Commercial Space Anchors Mixed-Use Vision
Beyond residential units, Kahuina will feature approximately 42,000 square feet of ground-level commercial space designed to serve both residents and the broader Kakaako community. The retail component aligns with the Hawaii Community Development Authority’s vision for creating a live-work-play environment in the rapidly transforming neighborhood.
The development sits within Kakaako’s master-planned community, which has seen dramatic growth over the past decade with projects like Ward Village reshaping the area’s skyline. However, Kahuina stands out for its substantial affordable housing commitment at a time when many new developments cater primarily to luxury buyers.
Stanford Carr Development has not yet released detailed floor plans or pricing structures for either the affordable or market-rate units. The company is currently working through the final permitting process with the city, with construction documents expected to be finalized by late 2025.
Addressing Honolulu’s Housing Shortage
The project comes as Honolulu grapples with one of the nation’s most severe housing affordability crises. The median home price in urban Honolulu recently topped $1.1 million, while rental costs continue climbing beyond the reach of many working families.
Recent data from the Hawaii Housing Finance and Development Corporation shows the island needs approximately 22,000 additional affordable rental units to meet current demand. Projects like Kahuina represent progress toward that goal, though advocates note much more development will be needed.
The Kakaako location offers particular advantages for affordable housing residents, with proximity to downtown employment centers, the planned rail transit system, and existing amenities like Keeaumoku Street’s commercial corridor and Kalihi-Palama’s cultural institutions.
Transportation access will be enhanced once the Honolulu rail system reaches the area, with the nearest planned station at Kalihi-Palama approximately one mile away. This connectivity could reduce transportation costs for residents, effectively increasing their housing affordability.
Development Timeline and Next Steps
Stanford Carr Development expects to receive final building permits by mid-2025, setting up the 2026 groundbreaking timeline. Construction is projected to take approximately three years, potentially delivering the first units by late 2028 or early 2029.
The developer will need to navigate the city’s affordable housing monitoring requirements, which typically include restrictions on resales and rental rates to ensure long-term affordability. These oversight mechanisms help prevent affordable units from converting to market-rate housing over time.
For Honolulu residents watching housing costs spiral upward, Kahuina represents both opportunity and a reminder of the scale of the challenge ahead. While 517 affordable units won’t solve the housing crisis, the project demonstrates how large-scale developments can contribute meaningfully to the solution when developers commit to substantial affordable housing components.
Applications for the affordable units won’t open until closer to completion, but interested families can monitor updates through the Hawaii Housing Finance and Development Corporation’s website. Income qualification and lottery processes typically begin 12-18 months before units become available.
