Why is Hawaii Housing so expensive?

did you know that the average home price in Honolulu is three times higher than the national average that's right living in Paradise comes with a hefty price tag today we're diving deep into the reasons behind these Sky High housing costes and what it means for both residents and investors let's uncover the factors driving honolulu's expensive housing [Music] market first let's talk about one of the most obvious reasons limited land availability aahu and specifically Honolulu is an island with finite space the beautiful beaches and mountainous terrain that make it so desirable also restrict the amount of land available for development this limited land coupled with a growing population creates a perfect storm for high housing costs but land scarcity is just one piece of the puzzle another major factor is the high demand for housing Honolulu is not just a popular destination for tourists but also for people looking to relocate The Lure of the island lifestyle combined with excellent job opportunities particularly in tourism and Military sectors attracts many newcomers every year this influx of people drives up the demand for housing pushing prices even higher and speaking of Tourism let's dwell into its impact tourism is the backbone of honolulu's economy but it also plays a significant role in the housing market vacation rentals and short-term leases often offer more lucrative returns for property owners than longterm rentals this shift reduces the availability of affordable housing options for local residents contributing further to the High Cost of Living zoning regulations also play a critical role strict zoning laws limit the types of buildings that can be constructed in different areas these regulations are designed to preserve the natural beauty and cultural heritage of honululu but they also restrict the supply of new housing for example height restrictions on buildings in certain zones prevent the development of high-rise Apartments that could accommodate more residents foreign investment has had a noticeable impact on Hulu's housing market investors from countries like Japan China and Canada see Hawaiian real estate as a safe and profitable investment their purchases often in the luxury segment drive up property values across the board this influx of foreign Capital can outprice local buyers making it even more challenging for residents to afford homes one of the biggest drivers of housing Demand on aahu specifically is the military presence the subsidies in the form uh basic allowances for housing along with the numerous military bases is what differentiates Wahu from the other Islands in my opinion this is what keeps Wahoo prices elevated now and in the future so what happens when you can buy un limited land high demand tourism impacts zoning regulations and foreign investments you get a housing market that is increasingly difficult for the average person to navigate this combination has led to what many are calling a housing crisis in Honolulu renting in Hawai is much more expens expensive than most places on the mainland and it all depends on location for example a studio on a Wahu can range from 1,000 to more than 1600 per month and that's not including utilities which can be around $150 per month for one person a one-bedroom apartment or home can range from about $1,500 to more than 2,000 a month and a two-bedroom apartment or house will start at ,800 per month looking at a luxurious new one-bedroom condo expect to Fork out at least 3,000 a month on top of high rent Hawai residents pay the most when it comes to monthly energy bills in the nation according to Payless po report on electricity rates by state you can expect to pay an average of about $400 per month for electricity electric bills will vary depending on the type of residents you live in how many people you live with how often you're at home and if you use air conditioners if you're looking to buy the median sales price on aahu or a single family home is a million as of April 2024 Medan sales price for a condo Inu is $510 ,000 despite the high prices increase of interest rates and lack of inventory Wahu continues to see demand in home and condo sales so why the high costs the high cost of living in Hawaii has many reasons but the short answer is the fact that we're surrounded by water nearly everything we consume has to be shipped here or flown Hawaii is also a desirable place for foreign investors to buy property which continues to drive up housing costs another big factor utility bills such as electricity or Skyhigh thanks to the warm climate like with many things in life there is certain a trade out ready for some good news honol Lo's residential property tax rate is 0.35% one of the lowest rates in the nation for retirees Haw can be fairly appealing as the state exempts Social Security retirement benefits and public pension income from state taxes however it fully taxes income from private pensions and retirement savings accounts so is it worth it here are a few reasons why it is you have a family and friends here you have a remote job and can work from anywhere you're retired and like to golf you love beaches and the outdoors you want to raise as a family and a small community you have an understanding respect for Hawaii's culture you want to invest and live in a home that appreciates over time you love the weather and food you get bored easily and need to live somewhere that has a lot to offer let's compare the cost of living between Honolulu to other cities across the US you can check out spurling's best places at bestplaces.net for the raw data based on the data we can come to a few conclusions the cost of food in Hawaii is high compared to other locations some places like California and New York have higher expenses in the area of Transportation in Honolulu you do not have to pay extra for garbage or Recycling services unlike most places it is more expensive to live in some locations like Seattle Manhattan San Francisco and San Diego than in Honolulu however all these locations also have a higher average income while the cost of living in Hawaii may be daunting at first it requires a bit of soul searching and a close look at your lifestyle if you're used to a certain stand of living you may need to make a few sacrifices when moving to Hawaii but it may not seem like a sacrifice to Nyx that luxury car or to eat out less especially if living near the ocean enjoying a warm climate and a healthy Island environment are important to you it's all about balancing your values and discovering what works for you and your family I hope this video has given you a clear understanding of why housing is so expensive in hululu and the challenges that come with it I'd love to hear your thoughts on the housing situation here do you think there are solutions that haven't been explored yet let us know in the comments below don't forget to like this video if you found it helpful and subscribe to our channel for more insights into real estate and housing Trends thank you for watching and we'll see you in our next video

Channel: Living in Honolulu Hawaii

Views: 154

Keywords: hawaii real estate, real estate, oahu market update, housing market, mililani, mortgage rates, koa ridge, aina haina, oahu real estate market update, oahu condo market, mililani mauka, biggerpockets, ewa beach hi homes for, ewa beach hi real estate, real estate statistics, nanea at koa ridge, koa ridge homes, oahu real estate market, oahu housing update, mililani town, koa ridge hawaii, waipahu real estate, investing in oahu condos, ewa beach homes, ewa beach real estate

Id: rIkg4Wc5suE

Length: 6min 34sec (394 seconds)

Published: Fri Jun 07 2024