3 Hawaii Housing Markets That Have Plummeted in Value Over the Past Decade
Written by
Laura Beck
Edited by
Zuri Anderson
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Hawaii’s real estate market is telling a complex story. While property values have stayed stubbornly high, transaction volumes have hit a 25-year low, according to Bryan Murphy, owner of Hawaii’s Best Travel.
Here’s what’s happening in key markets across the islands. Plus, learn more about the Hawaiian zip codes even wealthy people won’t be able to afford in less than a decade.
Oahu’s Reality Check
Single-family home transactions on Oahu have dropped to their lowest level in 25 years.
Even more telling? Only one in five local households can now afford the median price of $875,000 for a home, according to a 2024 University of Hawaii Economic Research Organization (UHERO) report.
Maui’s Perfect Storm
The Maui market faces unique challenges. About 32% of housing is owned by out-of-state buyers — the highest ratio in Hawaii, per the report.
Add in the loss of 3,000 homes from recent wildfires, and you’ve got a market under unprecedented pressure.
Honolulu’s Rental Squeeze
Honolulu’s rental market tells a similar story. The report found the median rent for a one-bedroom apartment now sits at $2,100, compared to the U.S. average of $1,600. More than 80% of Honolulu renters spend over 30% of their income on housing.
The Out-of-State Impact
Across Oahu, about 13% of housing units are owned by non-residents. These properties often sit vacant, limiting supply and driving up costs for locals. Empty homes now number around 35,000 across Honolulu County alone.
The Population Shift
The housing crunch has real consequences. In 2022, Hawaii saw a net loss of 11,000 residents — about 1% of its population. The combination of high prices and limited availability is literally reshaping Hawaii’s communities.
While overall property values haven’t dropped, the market’s dramatic slowdown suggests changes ahead, particularly as new legislation aims to increase housing availability for local residents.
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