Hawaii Housing Market Forecast 2023

 by HomeAbroad Editorial Team

·

Updated on May 30, 2023·
10 min read

Looking for the latest trends in the Hawaii Housing Market? Whether you’re a potential buyer, seller, or just interested in the real estate market, this blog will provide you with valuable insights and information.

Be it current dynamics or the Hawaii housing market forecast, we have covered it all! Let’s dive in!

Overview of Hawaii

Hawaii is a US state located in the central Pacific Ocean, consisting of eight main islands and numerous Hawaiian islands. The state has a population of approximately 1.4 million people and covers an area of 10,931 square miles.

Hawaii is known for its stunning natural beauty, with beaches, waterfalls, and volcanoes attracting tourists from around the world. The state’s economy heavily depends on tourism, with many visitors coming to enjoy the warm climate and outdoor activities such as surfing, hiking, and snorkeling.

Hawaii Real Estate Market 2023: Trends and Statistics

1. The average Hawaii home value is $834,583 as of March 2023. [5]
2. The average Hawaii home price has gone up 2.3% over the past year. [13]
3. Median days it takes for a home to go pending is 34. [13]
4. The median home price in Hawaii is $730,200 as of March 2023. [13]
5. According to the World Population Review, Hawaii has the highest cost of living; it ranks 193.3 in the cost of living index. [3]
6. In the housing index, Hawaii ranks 315.
7. Hawaii has one of the lowest foreclosure rates in the United States, with a foreclosure rate of 0.05% in 2022. [6]
8. Hawaii has 64.4% of homes with a mortgage.
9. Hawaii is the second most expensive place for renters in the US. [3]
10. Honolulu is the most popular and expensive neighborhood to live in. [10]

Hawaii Housing Market Forecast 2023: What Is Next?

The real estate and housing market of Hawaii is expected to stay strong for the next financial year as well. Here are some reasons why:

• Median home prices are through the roof, with the current price being $730,000; a steady increase in prices is expected: The median home sale price in Hawaii has been steadily increasing over the past few years, reaching around $730,000 as of March 2023. This trend is likely to continue in the near future as demand for housing in Hawaii remains strong. [13]

• Hawaii homes might be selling slowly, but the demand and supply cycle looks promising: Although the homes in Hawaii are selling slowly, with an average of 79 days on the market, there would still be a steady demand and supply chain of houses in Hawaii. [13]

• With only 1,108 homes listed for March 2023, a shortage of housing inventory is driving the prices to touch the ceiling: One can anticipate a high level of demand for homes in Hawaii and a shortage of available inventory, which could drive up prices even further. The supply of homes for sale in Hawaii is limited, with only 1,108 homes listed for sale in March 2023. This suggests that there is a low level of inventory in the Hawaii real estate market, which could contribute to continued price growth. [7]

• Investing in properties in Honolulu could be rewarding; investors can expect a return of +3.12% in one year: The Walletinvestor predicts that the potential long-term ROI in properties in Honolulu is around +3.12% in one year. [8] [12]

• Median home prices in Hawaii could skyrocket and go up to a whopping amount of $9,32,733: The median home prices in Hawaii could go up to $9,32,733 5 years down the line. [8]

Best Real Estate Investments: What Does The Hawaii Housing Market Forecast Say?

Are you planning to invest in the real estate market of Hawaii? Here are our top picks for the places you can buy properties in Hawaii:

1. Waikiki

1. Waikiki properties lost an average of 2.8% of their value last year, but predictions for the coming year show a reduced loss of 0.6%.  [12]
2. Currently, Hawaii’s median home prices are low at just $414,200 on average.
3. As a result, Waikiki real estate is around $200,000 less expensive than the state average. Both first-time buyers and those with low incomes are looking for affordable housing. [12]

2. Pearl City

1. At $733,300, Pearl City’s median home price is higher than the state average. However, property values increased by 3.2% last year, and 0.2% growth is expected over the following 12 months.
2. Although these numbers are not particularly encouraging, it’s important to keep in mind that many areas of Hawaii are not anticipated to grow at all. 
3. One of the highest median household incomes in the state is found in Pearl City. This is $91,122, which reflects the higher-than-average cost of real estate. [12]
4. We should also point out that only 2.9% of Pearl City’s properties currently have negative equity. 
5. This is an additional advantage when compared to the national average of 8.2% and the state average of 4.7%, respectively. [12]

3. Hilo

1. The Hilo region of Hawaii is possibly one of the best places to invest in real estate. One of the least expensive places to purchase real estate in Hawaii is Hilo, where the typical property value is under $332,000. [12]
2. For those with low incomes and first-time purchasers seeking for a more economical purchase, this makes it suitable.
3. More significantly, the Hilo region grew by 4.9% in 2017. 3.9% growth is anticipated during the upcoming 12 months. 
4. This indicates that Hilo is anticipated to fare better than the rest of Hawaii. 
5. The median household income in Hilo increased by 4.56% over the previous year. If you’re trying to rent out the house, this can work to your advantage. [12]

4. Kahului

1. Kahului beat the national average last year, while Hilo outperformed growth rates on a statewide basis. 
2. One of the finest areas in Hawaii for appreciation growth is Kahului, where the median home price has increased by 7.2%. [12]
3. Properties are predicted to expand by 4.3% in the upcoming year, which is almost higher than the national average.
4. With $642,500 as the median home price, prices are a little higher than the state average. 
5. However, median household incomes increased by 7.38 % in the past year, roughly in line with the rate of appreciation during that time. [12]

5. Urban Honolulu Metro

1. Although Urban Honolulu Metro’s median property values only increased by 1.4% last year and are projected to decline by 0.3% over the following 12 months, the region may offer the highest rental yields.
2. Urban Honolulu Metro’s current median rent is $2,300. The job market in urban Honolulu is also showing signs of strength. [12]
3. The employment rate increased by 2.43%, and the median family income increased by 6.2%; all of these factors are quite favorable for the rental market.
4. Urban Honolulu has a median listing price per square foot of $570, which is somewhat higher than the state average of $526. [12]

Hawaii Housing Market Analysis

Here is everything you need to know about the Hawaii housing market. From median home price to number of houses sold, we have covered everything:

1. Hawaii’s median home price in March 2023 was $730,200, a 2.1% increase over the same month the previous year. [13]
2. There were 1,132 properties sold in March of this year compared to 1,672 homes sold in March of last year, a 32.3% decrease in sales on average.
3. The median number of days on the market was 79, up 26 from the previous year. [13]

Hawaii Housing Supply

• Hawaii had 5,044 properties for sale in March 2023, a 10.6% decrease from the previous month.
• There were 1,108 new listings, which is a 36.0% decrease from the previous year.
• The average month of supply is 4 months, up 1 year over year. [13]

Hawaii Housing Demand

• Homes in Hawaii sold for 22.2% more than the asking price in March 2023, a 23.1-point decline from the previous month.
• Only 17.2% of homes experienced price drops, up from 10.0% of homes in March of the previous year. [13]
• The sale-to-list price was 97.9%, which is 3.3 points lower than last year.

Average Hawaii Home Prices: 2022-2023

Here are the types of houses and their average home prices in Hawaii: [13]

Rental Market in Hawaii: Average Rent, Rental Yield, and More!

• The median rent in Hawaii has increased 11.4% in the last year and now sits around $2,146. [2]
• The latest increase in rent prices has lagged behind home value appreciation over the last year.
• As a result, there’s a good chance rent will increase at a faster pace in the near future.

For now, renters can expect to pay the following in rent (on average):

Top 5 Places With Highest Monthly Rental Yield In Hawaii

While doing Hawaii’s real estate market analysis, it is crucial to determine the rental yield. This information is vital for real estate investors in Hawaii to make sound decisions.

Here is a quick overview of the rental yield in Hawaii’s real estate market: [2] [1] [11]

Housing Inventory In Hawaii

Here is an estimate of housing inventory in Hawaii (active listing count): [9]

Hottest Neighborhoods In Hawaii: Average Home Prices, Cost Per SqFt, etc.!

These are the most popular neighborhoods that have got everyone’s attention in recent years, and rightly so! From lush nature to modern amenities, residents in these localities have it all! [10]

Let us have a look at these popular places to live in Hawaii:

Economic And Demographic Trends Affecting The Hawaii Housing Market

• The economy of Hawaii is heavily dependent on tourism, with many visitors coming to appreciate the tropical climate and outdoor activities such as surfing, hiking, and snorkeling.
• Despite the COVID-19 pandemic, the number of visitors to Hawaii has been increasing in recent months. This trend could boost real estate prices in the near future.
• Hawaii’s population has been growing steadily over the past few years, with the population estimated to reach 1.53 million in 2023. [1]
• This increase in population could drive up demand for housing in Hawaii, thus leading to an appreciation of home prices.
• Additionally, low-interest rates on mortgages and loans have made it easier for buyers to purchase homes, thus driving up the demand for housing in Hawaii. This could result in an increase in home prices over time.

O’ahu’s Real Estate Market: A Short Boost In Hawaii Real Estate Market

1. Condo median sales price in March 2023 set a new record of $536,000, a 4% rise Year-over-Year (YoY). [4]
2. In March 2023, 58.5% of single-family home sales closed at $1,000,000 or more, pushing the median sales price above $1 million.
3. The $600,000 to $799,999 price range saw a 70.6% YoY increase in sales volume for single-family homes. [4]
4. Median days on the market for single-family homes and condos were 36 days and 24 days, respectively, compared to a 9-day median in both markets one year ago.
5. Single-family home listings priced at $899,999 and below saw active inventory more than double YoY.
6. New listing volume in the first quarter of 2023 was down approximately 28% YoY in both the single-family home and condo markets. [4]
7. Pending sales volume fell short by more than 30% YoY in both the single-family home and condo markets.

Honolulu Housing Market Status: Know About The Most Competitive Neighborhood In Hawaii

1. The average home price in Honolulu is $807,739. [8]
2. In March 2023, Honolulu home prices were up 9.0% compared to last year, selling for a median price of $594K. [8]
3. On average, homes in Honolulu sell after 78 days on the market compared to 56 days last year. There were 316 homes sold in March this year, down from 467 last year.
4. The average homes sell for about 2% below the list price and go pending in around 72 days. [8]
5. Hot homes can sell for around the list price and go pending in around 40 days. [8]

Types Of Houses In Honolulu: A To Z About Median Price, Homes Sold, Etc.

Homes’ Sales Statistics In Honolulu

Hawaii’s Island Wise Data In A Glance

Data On Single-Family Houses

Data on Condos/Co-ops

Year-To-Date Through March’23 Data On Single-Family Houses

Year-To-Date Through March’23 Data On Condos/Co-ops

Conclusion

The real estate market in Hawaii is dynamic and complex, with different trends and predictions for each location and type of property. We hope this post achieved our goal of keeping you informed about Hawaii’s current real estate market.

Making wise financial and investment decisions requires thoroughly reviewing the aforementioned information. 

Sources

1. Bankrate
2. Khon2
3. World Population Review
4. HawaiiBusiness
5. Zillow
6. 24/7 Wallst
7. Norada Real Investments
8. Wallet investor
9. Fred Economic Data
10. Realtor.com
11. Mashvisor
12. Clever
13. Redfin
14. HiCentral
15. Hawaii Realtors

FAQs

About the authors:

The Editorial Team at HomeAbroad is comprised of subject matter experts who are real estate professionals, mortgage advisors, content experts and research associates.

Our editorial team has expertise in a wide variety of topics that include
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