Outer Island Real Estate Trends
Many people who move to and live in Hawaii have Honolulu or the North Shore first in mind. This is no surprise, as Oahu, nicknamed “the Gathering Place,” as it’s home to 953,207 residents and counting. However, the Outer Islands, and particularly Kauai, Maui, and the Big Island offer interesting Hawaii real estate options for your Hawaii home or property investment.
The lush green Garden Isle is not just the backdrop to Jurassic Park, home to sunny Poipu, and the pristine (and dare I write posh) beaches of Princeville. The medium housing cost in Kauai is over $900K as of January this year, a price that jumped 76%, as condo prices are up 17% from last year, raking in at just under $600K, according to locationshawaii.com. However, home sales are generally down, perhaps due to the extreme price increase, while condo sales are up for the 73k+ and growing population. It’s true that Kauai is run by luxury properties, and the median homeowner is more likely to invest in condo living, as it offers ample comfort for a more affordable price, as well as the perks of community living. Luxury properties, mostly located on the North Shore of the island, are the cause of this price disparity. Hands down, prices are climbing, and the value of Kauai property will continue to increase, so there is no bad time to invest in Kauai real estate. Demand is also increasing for this beautiful outer island that is a quick flight from Honolulu, and yet provides more secluded island living.
Ah, Maui: ample resorts, the Road to Hana, Haleakala volcano, lavender fields, and sweeping underwater life, who wouldn’t want to call Maui home? The second-largest Hawaiian island is far less populated than Oahu, with 168,000+ residents calling it home. The Maui real estate market is also climbing, with the median home selling for $1.16 million, with the average condo going for $740,000. Homes are up 27% (a lower jump than Kauai), while condo prices increase 17% (the same increase as Kauai). Unlike Kauai, home and condo sales are up, rather than down, as some residents are flocking from the more crowded Honolulu to this beautiful island that offers some stable employment and far greater median housing options than that of Kauai. While high-end sales do drive Maui real estate prices up, working with a Maui realtor can help you find options more in your price range.
Big Island (Island of Hawaii)
The island of Hawaii truly is big: over 4k square miles, it is the “Big” Island, as the largest island in the Hawaiian Island chain. Perhaps unsurprisingly enough, this volcano-made-famous paradise with black sand beaches and vast greenery is home to approximately 200,900 residents: more than Maui and Kauai, but as it is far bigger in size, you’ll certainly feel more secluded when seeking to invest in Big Island real estate. The median home price, as the other islands, has climbed, just at a lower rate. Homes are retailing for $534K, an 11% jump from last year, while condo prices are up 26% (a greater increase than Maui and Kauai), selling at $434.5K. However, like Kauai, real estate activity and investment on the Big Island is trending downward by -2%, and a -13% drop in condo sales from last year. However, the Big Island offers more affordable pricing options, and a rarity for any real estate market: home and condo prices don’t vary that much. This is because there are many condos on the west side of the market, and the east side is far more residential with many homes.
Whether you decide to invest in Kauai, Maui, or the Big Island on our outer island real estate hunt, consult with a local realtor and do your research on market trends before making the plunge. With a little local knowledge, you’re sure to find your perfect home in paradise.
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