Cost of Hawai‘i’s vehicle transportation system soars to $27.4 billion annually
Apr 13, 2025

New report finds each household’s burden is $33,600 annually in shared transportation costs … and that’s before personal car expenses
HONOLULU — Adding to the cost of living in the aloha state, is the cost of Hawai‘i’s vehicle transportation system. Rising by 31 percent since 2021, it now totals more than $27.4 billion annually growing above and beyond general inflation, according to a new report released today. The findings show that every household in the state already pays an average of $33,600 annually through both direct and indirect public costs such as taxes, opportunity cost of dedicated land, and societal impacts (greenhouse gas emissions, congestion, injuries and fatalities, etc.) — even before factoring in any personal vehicle costs. This collective burden exists regardless of whether a household owns a vehicle or not.
Released by Ulupono Initiative and global consulting firm ICF, the report examines the “vehicle economy” — the complete system of ground transportation including roadways, vehicles, bridges, parking, and associated societal costs such as pollution and congestion. It reveals that 61 percent ($16.6 billion) of these costs are paid by the public through state and county budgets, social and economic costs, and the real estate value of land dedicated to roads and parking. The remaining 39 percent ($10.8 billion) represents private costs paid by consumers for vehicle ownership and parking.
Ulupono Initiative commissioned the report because many of the costs of the vehicle economy are hidden, not readily apparent, or otherwise not generally acknowledged. The report equips leaders and individual residents alike with all the available data to inform their own decision making when major, expensive decisions are being made around transportation. The 2025 Hawai‘i Vehicle Economy Report analysis is not a cost-benefit analysis and does not account for benefits of the various transportation investments or vehicle ownership. Instead, this analysis aims to estimate the true annual costs of the vehicle economy in Hawaiʻi to understand the extent of Hawaiʻi transportation system investment, using a conservative approach.
“This study is important because a lot of times when we talk about transportation costs, we're talking about the cost of one project and how much it costs, or how much gas prices have gone up, but we aren't really having a holistic view of how much we’re investing,” said Kathleen Rooney, Ulupono Initiative’s director of transportation policy and programs. “The cost is a burden to everyone regardless if they drive or not and it just makes the cost of living harder and higher for a lot of people.”
The report also puts in perspective other transportation-related investments designed to offer choice, especially relatively small investments in expanding safe routes to school and other projects that impact safety, health and livability — without forcing Hawai‘i residents into expensive car ownership.
“This study shows how our transportation system is reinforcing the very problems it aims to solve,” said Abbey Seitz, director of transportation equity for Hawai‘i Appleseed. “To address these issues, we should prioritize projects that reduce vehicle travel and provide our residents safer, more affordable mobility options, such as public transportation, walking and biking.”
Key findings include:
- Every Hawai‘i household pays approximately $33,600 annually in shared public burden of transportation system costs, completely separate from any personal vehicle expenses.
- On top of this shared burden, households that own vehicles pay an additional $21,800 annually in direct private ownership costs.
- The combined impact means vehicle-owning households face a total transportation burden of over $55,400 annually.
- Lower-income households experience disproportionate impacts from increased used car costs, higher interest rates, and greater exposure to pollution and road-related injuries.
These transportation costs, whether direct or paid through taxes, compound Hawai‘i’s existing cost of living. According to a recent UHERO report, the median sales price of a single-family home on Oʻahu exceeds $1.1 million, with median rents approaching $2,000. The Hawai'i Housing Factbook reports that 58% of Oʻahu renters are rent-burdened, spending more than 30% of their income on housing, while 29% are severely rent-burdened, allocating over half of their income to rent. Investing in more expensive transportation options may not be the best choice, when walking, biking, rolling, and transit, are significantly less expensive, consume less land, and encourage more active living
The findings come at a particularly challenging time for state finances. The State of Hawai‘i Council on Revenues recently lowered its general fund tax revenue forecast to 5% for the current fiscal year and predicted a 2.25% decline in tax collections for the next fiscal year, resulting in a projected $255 million loss in state tax revenue for fiscal year 2026. Perhaps a more critical examination of transportation investment strategies would help address these issues.
The full report includes detailed methodology, comprehensive results, and an analysis of greenhouse gas emissions, legal settlements, and socioeconomic impacts related to Hawai‘i’s vehicle economy.
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About Ulupono Initiative:
A mission-driven venture of The Omidyar Group, Ulupono Initiative strives to improve the quality of life for the people of Hawai‘i by working toward sustainable solutions that support and promote locally produced food, renewable energy, clean transportation choices, and better management of freshwater. For more information about Ulupono Initiative, visit ulupono.com or connect with Ulupono on Facebook, Instagram and LinkedIn.
About ICF:
ICF, a global consulting services company, is internationally recognized for expertise and leadership in transportation assessment, benefit-cost analysis, greenhouse gas mitigation, and climate resilience planning. For more information about ICF, visit www.icf.com.
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