"Honolulu is facing a housing shortage (a 2014 study found a need for 14,310 units to be built by 2020) and soaring costs..."

Reducing military personnel and families in Honolulu County could solve the shortage, and eliminating the effects from their bloated housing allowance would create downward pressure on rents and property values.

The Federal Gvt should be building adequate housing on base for all active duty personnel, and then eliminate the housing allowance. Our congressional delegation should be pushing for this. 

Alternatively, the problem could be solved by reducing the active duty US military presence in Hawaii.