Hawaii is often seen as a paradise, with its breathtaking beaches, year-round warm weather, and a relaxed island lifestyle. But what is it really like to own a home in Hawaii? As a homeowner and real estate professional who has lived in Hawaii for over 15 years, I can share the real picture—beyond the postcards and social media highlights.
The Cost of Homeownership in Hawaii
1. Home Prices & Mortgage Considerations
Hawaii consistently ranks among the most expensive housing markets in the U.S. The median home price varies by island, but on Oahu, the median price for a single-family home as of February 2025 is $1,185,000, while the median price for a condo is at $494,000..
For buyers, this means higher down payments and with the rates for a conventional loan hovering at around 7% for the past couple years a significant monthly mortgage payment. VA loans (for eligible military service members) and Hawaii’s first-time homebuyer programs can help offset costs, but with most VA buyers opting for a zero down payment option, affordability may remain a major challenge.
2. Property Taxes & Insurance
●Hawaii’s property taxes are among the lowest in the nation with the rate at 0.27%, but that does not translate into affordable homeownership. There are other costs that can add significant costs.
●Natural disasters such as hurricanes, floods, tsunami’s and volcanic eruptions have caused homeowner insurance in Hawaii to rise.
●Since 2023 have seen a significant increase with homeowner insurance rates seeing a 9% increase, while condo insurance rates have seen a rise of 19%.
3. Utilities & Maintenance
- Electricity costs in Hawaii are some of the highest in the nation, averaging $300-$600 per month. To combat the high costs many homeowners have installed a photovoltaic (PV) system or solar water heater to help reduce costs.
- Water and sewer utility bills vary, but for a single-family home you can expect $150-$300 depending on usage.
- Due to Hawaii’s climate such as the humidity and salty air, home maintenance is an ongoing concern. Factor costs for shipping materials and supplies and home maintenance can create a significant financial burden.
The Hawaii Lifestyle: Is It Worth the Cost?
1. Outdoor Living & Natural Beauty
Hawaii’s ideal year-round weather leads many to live an active outdoor lifestyle. Surfing, golf, hiking, and snorkeling are year-round activities that many enjoy.
2. Local Culture & Community
Hawaii is a melting pot of cultures, which leads to a strong sense of community and multicultural influences. Homeownership often means becoming part of a close-knit neighborhood, where local events, farmers’ markets, and island traditions bring people together.
3. Traffic & Commuting
Traffic on Oahu—especially on the south shore—can be frustrating, with daily commutes from the growing communities of Ewa Beach or Kapolei to town often exceeding an hour. If you work remotely or have a flexible schedule, this isn’t as much of an issue.
4. Access to Goods & Services
- Due to the costs to import items such as eggs, milk, and fresh meats or produce, you can expect to pay 30-50% more than what it costs on the mainland. Shopping at Costco, local farmers’ markets, the Commissary if you have access, or growing your own food can help offset costs.
- Dining out ranges from affordable plate lunches ($15-$20) to high-end restaurants. Supporting locally owned businesses helps keep the island economy thriving.
Final Thoughts: Is Homeownership in Hawaii Right for You?
Owning a home in Hawaii is a dream for many, but it comes with high costs, unique challenges, and an adjustment to island living. The trade-off? Unmatched beauty, an outdoor lifestyle, and a deep sense of community that’s hard to find anywhere else.
If you’re considering buying in Hawaii, I’d love to help you navigate the market—whether you’re moving here, returning home, or looking for a better understanding of your options. Let’s talk!