Hawaii lawmakers are advancing a proposal that would put counties on notice: if they restrict where homes can be built, they must make up that lost capacity elsewhere. Supporters say it is a simple backstop aimed at stopping local zoning moves that nibble away at the state’s already tight housing supply.
What the bill would do
The measure, SB25 SD1, would bar any county from reducing the number of housing units allowed in one area unless it simultaneously increases capacity in another area so that there is “no net loss in residential capacity,” according to the Hawai‘i State Legislature. Backers say that language is meant to keep isolated downzonings from quietly chipping away at the total number of homes the state could theoretically build.
The bill has already cleared the Senate in amended form and has been carried over into the 2026 session, where it is slated for further consideration in the House.
Where the numbers stand
Supporters of SB25 lean heavily on the state’s own housing data. The Hawaiʻi Housing Planning Study estimates Hawaii will need about 64,490 additional housing units by 2027, while roughly 13,471 units are currently somewhere in the development pipeline. Those figures are laid out on the Hawaiʻi Housing Planning Study landing page and in its technical reports, and they highlight just how far supply is trailing projected demand.
Who’s for and who’s against
Policy organizations and housing advocates lined up in support, telling lawmakers that SB25 would act as a safeguard against local zoning changes that decrease the amount of buildable housing land statewide. In written testimony, the Grassroot Institute of Hawaii argued that SB25 “would help make sure that the state’s housing potential would not be constricted by downzoning.” That testimony was submitted to the House committee reviewing the bill.
County planners, however, raised red flags. The City and County of Honolulu’s Department of Planning and Permitting called the bill’s wording “confusing and misleading,” pointing out that it does not spell out what counts as a “portion” of a county. Officials warned that, as written, the measure could force upzoning in places where infrastructure is lacking or where safety and climate risks make denser development a bad idea. The department urged legislators to spell out how the policy should work in practice and where its limits are before locking in a statewide rule.
What’s next
SB25 has been carried into the 2026 Regular Session and is listed with House referrals for additional review on the Hawai‘i State Legislature website. As it moves through the Capitol, expect detailed sparring over definitions, exemptions and edge cases, with questions about infrastructure capacity, hazard planning and the balance between statewide rules and local control likely to dominate the debate.
