Hawaii, known for its magnificent landscape, unique culture, and pleasant temperature, nevertheless has a notoriously expensive cost of living, notably in housing. A UHERO research emphasizes the large money necessary to purchase housing in the state. To afford the median house in 2022, purchasers would need to earn about 180% of the state’s median income, or $150,000 per year. Condo purchasers faced a similar hurdle, with a minimum income of $100,000, or 120% of the state’s median income.
However, not all Hawaiian cities are similarly expensive. Some locations are more difficult for the ordinary buyer or renter to navigate because of high home costs and lower wages. Using data from the United States Census Bureau, UHERO, and Civil Beat, we’ll look at three Hawaii communities where cost may be seen as a difficulty.
1. Laie
Laie, located on Oahu’s north coast and home to the Polynesian Cultural Center and Brigham Young University-Hawaii, is facing affordability difficulties. Despite a typical family income of $100,585 (134% of the state’s median income), the median home price in Laie is $1,500,000, with a median condo price of $400,000 in 2022. To afford a home in Laie, you needed to earn $250,000 a year, or 333% of the state median income. A condo required an annual income of $106,000, or 141% of the state’s median income.
Laie, which has a 61.4% renter percentage, suffered comparable rental issues. The typical rent in 2019 was $2,134, or 25.5% of the median family income. In 2023, the median asking rent on Craigslist was $2,200, affecting over half of renters and more than a third who were severely rent-burdened.
2. Honolulu
Honolulu, Hawaii’s capital and largest city, is a major economic and cultural powerhouse. In addition, it is the state’s most costly city. In 2022, the median house price was $1,890,000, while the typical condominium price was $319,347. Affording a home in Honolulu requires an annual income of $314,000, which is around 417% of the state median income. A condo required an annual income of $106,000, or 141% of the state’s median income.
Honolulu, with a 61.4% renter percentage, also had issues on this front. The typical rent in 2019 was $2,134, or 28.8% of the median family income. However, with the median asking rent on Craigslist expected to reach $2,200 by 2023, many tenants would face increasing hardship. Almost half of renters spent more than 30% of their income on rent, while more than one-third paid more than 50%.
3. Kailua
Kailua, located on Oahu’s windward shore, is well-known for its stunning beaches and relaxed lifestyle. Despite having a relatively high median family income of $130,000 (173% of the state’s median income), purchasing a property in Kailua remained challenging. In 2022, the median house price was $1,650,000, while the typical condominium price was $525,000. To afford a home in Kailua, an annual income of $275,000, or 366% of the state’s median income, was required. A condo needed an annual income of $139,000, or 185% of the state’s median income.
Kailua has a low renter share, at 28.6%. However, with a median rent of $2,500 in 2019, or 23.1% of the median household income, the challenges persisted. In 2023, the median asking rent on Craigslist increased to $3,000, affecting roughly one-third of renters and one-fifth of those who were severely rent-burdened.
Conclusion
Navigating Hawaii’s housing sector may be difficult due to rising costs and socioeconomic differences. Laie in Oahu’s north shore, Honolulu, and Kailua suffer affordability issues that necessitate high salaries for house purchases or rentals. Honolulu ranks as the most expensive city, with housing prices at 417% of the state’s median income. These findings highlight Hawaii’s greater challenge with housing affordability, which affects inhabitants from a variety of communities.