Military housing allowance up 2.5%

While the average soldier is underpaid and exploited like most workers, the extra assistance they receive when stationed in a place like Hawai’i can have negative effects on the cost of housing for civilian residents by artificially inflating housing prices in Hawai’i, which tends to drive out residents who cannot compete.  This is one factor in the mass exodus of Native Hawaiians and other long time Hawai’i residents and the growing houselessness problem.

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http://www.bizjournals.com/pacific/stories/2009/12/14/daily28.html

Wednesday, December 16, 2009, 12:58pm HAST

Military housing allowance up 2.5%

Pacific Business News (Honolulu) – by Randi Petrello

The U.S. Department of Defense is increasing the housing allowance 2.5 percent for members of the military, including those stationed in Hawaii.

The new rates will take effect Jan. 1, 2010. Housing for military members will cost taxpayers $19 billion for the year, the department said Wednesday.

It is the smallest percentage increase since the off-base housing program started in 2000.

The increase averages about $37 per month for more than 900,000 servicemembers. Some areas will see a higher increase, while others will see less.

In Hawaii, some military members will see a decrease because of the decline in home prices and rental rates. A typical E-4 with dependents living in Hawaii will receive about $2,001 per month, about $16 more a month than in 2009.

An E-8 with dependents will receive about $2,670 a month, approximately $125 more than a year ago. Housing costs are calculated for six housing profiles, based on dwelling type and number of bedrooms, in each military housing area. Basic allowance rates are then calculated for each pay grade, both with and without dependents, the department said.