Buying Real Estate in Hawaii – What You Should Know
What to Know When Buying Real Estate in Hawaii
You already know that Hawaiian real estate is expensive. You expect to pay more when you live in paradise. While Hawaiian home prices are the highest in the nation, there are some places that are far more expensive than others. In Hawaii, that difference often depends on which island the property is located.
High End Properties
You’ll find the most expensive properties on Oahu, and many of those neighborhoods are household words elsewhere in the U.S., synonymous with tropical luxury. These include Diamond Head, Waikiki, along with Kahala, Portlock, Lanikai, Beachside and the gated communities of Black Point and Hawaii Loa Ridge. Many of these properties fetch $3 million or more. When it comes to the highest individual properties, many of them are found on the Big Island’s Kona Coast, and the prices are stratospheric, in the $20 million and up range.
Average Properties
The Big Island’s median price for single family homes in 2017 was $350,000. That sounds like an absolute bargain, but the way the median price was attained is deceptive. The median price for Puna and Ka-u was $235,000, but the median price for the seven other districts – South Kona, North Kona, South Kohala, North Kohala, South Hilo, North Hilo and Hamakua – was $711,000, which is a lot less affordable. Still, the rapidly growing Puna and Ka-u districts are still among the best places to snap up a Hawaiian property, and snap is the operative word. Such properties go quickly once they are on the market.
On Oahu, Ewa Beach offers good value at an average home price of $627,300. The median per square foot price is $448, lower by $101 than the Honolulu metro average of $547 per square foot. Nearby cities with lower home prices include Waianae, at $425,400 and Wahiawa, at $612,500. Nearby cities with slightly higher home prices include Kapolei, at $649,900; Waipahu, at $663,800 and Aiea, at $712,600. The median price for Honolulu is $675,000, a bargain considering its proximity to work areas for many residents.
Affordable Properties
In Hawaii, affordability is relative. However, some places with relatively high real estate prices also have average median incomes. These include Kahului on Maui, a city that is home to one-third of the island’s population. The median home price as of 2018 is $485,000, but the median household income is just $62,038. Hilo, on the Big Island, has a median home value of just over $300,000, and a median household income of $52,563. The lava issue has affected parts of the market on the Big Island, but prices are nevertheless trending upward.
Other Considerations
When buying real estate in Hawaii, you must keep other factors in mind, such as the higher costs of fuel, electricity, food and staples than you’ll find on the mainland. On the plus side, Hawaiian property taxes are relatively low, especially compared with the average cost of housing.
Contact Us
If you’re looking to buy or sell a home or find a rental property, you need a knowledgeable, experienced realtor familiar with all aspects of the Hawaiian real estate market. Contact Island Realty Group LLC at 808-689-7407 or IslandRealtyGroup@irghi.com.
