How to buy a house in Hawaii

Buying a home in Hawaii means owning a piece of paradise, but you’ll pay a premium price. While the Aloha State’s real estate market offers island weather and a relaxed lifestyle, you’ll also have to work with the state’s high cost of living and considerable median home price. It’s important to consider both when deciding if buying property there is right for you.

This guide breaks down what you need to know about Hawaii’s real estate market, including the state’s neighborhoods, real estate market trends, and home-buying process.

Hawaii housing market: At a glance

Here’s a quick overview of Hawaii’s housing market, as of November 2025. You can find current information about Hawaii’s housing market at Redfin.com here.

Key real estate market trends in Hawaii

Now let’s take a closer look at some important trends and facts about the Hawaii real estate market.

Home prices

It turns out that paradise is not cheap. As of November 2025, the median price of homes in Hawaii was approximately $739,000, while the national median home price was around $433,000. This makes homes in the Aloha State about 71% more expensive.

This higher home value reflects the limited supply of land, a shortage of new home construction, many rules and regulations that slow development, and the high cost of supplies. Of course, the cost of housing varies by island and neighborhood.

You can use the home affordability calculator from Rocket Mortgage® to compare the affordability of homes in different Hawaii zip codes. It can help you determine how much house you can afford and narrow your search.

Housing demand vs. inventory

Hawaii homes are expensive because demand is high. Especially in recent years, with the explosion of remote work, people are moving to the islands. The limited supply of homes and has also driven prices up.

Certain places have experienced a higher rate of price inflation than others. As of November 2025, Kailua’s median sale price rose by almost 48% year-over-year to $1,640,000. This is one of the most desirable parts of the island and the supply of buildable land is low.

Overall, despite housing shortages, the trend is in the right direction, with a 7.5% increase in the homes for sale from a year ago. This can help ease the competition for buyers in this limited market, pushing it ever so slightly toward a buyer’s market vs. a seller’s market.

All of this is a good reason to work with an experienced local real estate agent. They will understand the market, know the details of homes, and have connections with sellers and other agents.

Home buying seasons

Yes, the seasons are mild in Hawaii. But there are still seasons, and they affect the housing market and dictate when the best time of year is for you to find a home. Basically, you’ll likely see the greatest inventory in spring and summer. But you’ll also have the most competition with other buyers.

In fall and especially winter, you may encounter a smaller number of homes for sale. But you’ll also have fewer buyers to contend with. You also might have a better chance at finding a bargain from sellers who want to wrap up sales before the holidays or the end of the year.

Top places to buy a house in Hawaii

Hawaii’s weather might not change a lot during the year, but the state does have a variety of communities. Here, we’ll explore some popular ones, but it pays to do research on finding a spot that aligns with your idea of where you should live.

Honolulu

• Population: approximately 344,000
• Median household income: approximately $104,000
• Median home price: $734,000 (varies by neighborhood)

When discussing Honolulu, it can get confusing since the county of Honolulu encompasses the entire island of Oahu. However, Honolulu is also a thriving city within the county, with a range of neighborhoods, from the very urban to sprawling suburbs and, of course, the famous high-rise apartments and iconic beaches of Waikiki. This desirable city is also often ranked as one of the most expensive places to live.

Pearl City

• Population: approximately 45,000
• Median household income: approximately $114,682
• Median home price: $995,000

With good public and private schools, a large mall and shopping center, and proximity to the beaches and city of Honolulu, Pearl City offers suburban living with a lot to do. It’s known as a safe, friendly community.

Hilo

• Population: approximately 49,000
• Median household income: approximately $78,713
• Median home price: $550,000

If your vision of paradise is black sand beaches, thick, verdant hills, and a wild blue ocean, then Hilo might be your spot. On the east side of the island of Hawaii, aka the Big Island, Hilo has less bustle and more rain than most spots on Oahu.

Waipahu

• Population: approximately 40,000
• Median household income: $98,633
• Median home price: $798,000

Located in the center of Oahu, Waipahu has strong suburban, family vibes. But just because it has no beaches doesn’t mean it’s a nature-free zone. There are plenty of spectacular hikes in the nearby Koolau Mountains, with waterfalls, such as the hidden Lulumahu Falls, and Waipio Falls Park.

Kailua

• Population: approximately 40,000
• Median household income: $146,615
• Median home price: $1,640,000

Located on the east side of Oahu with one of the island’s most stunning bays, Kailua is an upscale community with quiet suburbs and a laidback, ocean-centric lifestyle. Kailua also boasts well-reviewed golf courses as well as a moderate year-round climate thanks to the onshore trade winds.

Steps for buying a home in Hawaii

Let’s walk through the home-buying process in Hawaii.

1. Get your finances ready

The first step in the house hunting process involves preparing your finances and assessing your creditworthiness so you can qualify for a mortgage. Here’s a quick checklist:

• Review your budget and use the simple mortgage calculator from Rocket Mortgage^® to determine the affordability of houses in Hawaii.
• Check your credit score. To buy a house, you’ll need a score around 620 for a conventional loan and 580 or more if you plan on an FHA loan¹. However, keep in mind that a higher credit score generally means a lower interest rate and lower monthly payments.
• Ensure you have a decent debt-to-income ratio (DTI). Some lenders will want your DTI at 35% or lower. And again, for the best rates, the lower the better.
• Plan and save for a down payment and closing costs. And keep in mind that due to the high price of Hawaii homes, they will also be high.

2. Research home loan options

One of the most consequential decisions you’ll make is what type of mortgage you’ll use to finance your home. Here’s an overview of the differences in your options.

• Conventional loans: These loans are open to all who can qualify. You’ll typically need a credit score of at least 620 and a down payment of 20% if you want to avoid paying private mortgage insurance (PMI). Otherwise, you may be able to put down as little as 3% with certain lenders.
• Jumbo loans: These are loans that exceed the amount guaranteed by Freddie Mac and Fannie Mae. In Hawaii that amount is $1,299,500 for 2026. A loan amount higher than this would be a jumbo loan and could come with a higher interest rate and cost.
• FHA loans: These are government-backed loans designed for first-time and lower-income borrowers. You’ll need a credit score of at least 580, and mortgage insurance (MIP) is required. You’ll also need a down payment of at least 3.5%.
• VA loans²: For eligible veterans and active-duty military, these loans can be secured with as little as no money down. They have more flexible requirements, but they do have a funding fee for most borrowers.
• USDA loans: For eligible rural areas, these government-backed loans have certain requirements for borrowers as well as the home. They must meet USDA standards of area type and low to moderate income, respectively.

Hawaii also has many assistance programs for first-time buyers and lower-income borrowers. These help with down payment and closing cost assistance, as well as guidance on how to navigate the home buying process.

3. Get preapproved

Getting mortgage preapproval, especially in a competitive housing market, can increase your success in buying the home of your dreams. It shows sellers you are both serious and qualified to buy their home. Preapproval also gives you an idea of what your mortgage rate in Hawaii and monthly payments will be.

To get preapproved, you’ll need to share things like proof of employment and income with a lender. They’ll check your credit and preapprove you for a certain loan amount.

4. Find a trusted Hawaii real estate agent

Because Hawaii is such a unique and isolated state, understanding the local market is vital. It’s also common to run into terms such as leasehold, which means you own the building but not the land where it sits, and fee simple when shopping properties in Hawaii. So you’ll want to find an experienced real estate agent. They have relationships with other local agents and have experience with the details of buying and selling in the area.

To find a real estate agent, start by asking for referrals and checking recent sales in the neighborhood you're considering. Redfin.com is also a trusted source to find a local real estate agent.

During your hunt for a real estate agent, you might see the term “dual agency.” This means an agent can represent both the seller and the buyer, but they must disclose it. If this comes up with a home you’re interested in, make sure you’re comfortable with it.

5. Start shopping for homes in Hawaii

It’s a good idea to begin your search using online sites like Redfin or combing the MLS. Your real estate agent can help you gain access. These are convenient and low-cost ways to get an initial feel for the market, especially if you live on the Mainland.

Once you learn about various neighborhoods and have some prospects that meet your family’s needs, you can visit the state and attend open houses to get an up-close look at the market offerings or take advantage of virtual tours.

When shopping consider factors such as:

• Education and job opportunities
• Local amenities like transportation, shopping, and medical services
• HOA fees and rules
• Commute times
• Property taxes, which vary by municipality
  
  

6. Make an offer and negotiate

When you find a home and are ready to make an offer, your real estate agent or real estate attorney will help you through the process. In Hawaii, sellers are obligated to disclose any material defects; this will factor into your negotiations.

If your offer is accepted, you’ll need to put up earnest money. This is a deposit showing that you’re serious about buying the property. Later, if the sale goes through, this money goes toward your down payment.

You’ll also want to get a home inspection and appraisal to make sure the condition of the property meets the lender’s requirements. It’s also advisable to have an appraisal contingency and an inspection contingency in your purchase agreement, so if there are any major problems and you need to back out of the deal, you’ll get your deposit back.

7. Close on your new Hawaii home

The final days of closing on your home are busy ones. You’ll complete a property walk-through, finalize your loan underwriting process, and attend a closing meeting. At closing, you’ll sign a lot of paperwork, pay closing costs, and get the keys to your new home.

You might want a real estate attorney present at closing, but Hawaii doesn’t require one. You’ll also want to be prepared for closing costs, which can range from 2% to 5% of the purchase price of the home. Because Hawaii real estate is expensive, this can be a big number. Closing costs typically include loan origination fees, points, title insurance, escrow fees, recording fees, possibly property taxes, insurance, and some inspections.

FAQ

Here are some common questions about buying a house in Hawaii.

Is buying a home in Hawaii a good investment?

Buying a home in Hawaii can be a good investment, depending on many factors. You may want to look at how much homes have appreciated in the area that interests you. You can use this rent vs. buy calculator from Rocket Mortgage^® to see if the cost difference makes sense for you. It really comes down to your personal financial and life goals and whether the state’s lifestyle is for you.

Can I buy a house in Hawaii if I have bad credit?

Yes, you can buy a house with a lower credit score, but remember that the lower your credit score, the higher your interest rate may be. There are also minimum credit scores you’ll need to meet for certain loans. For conventional loans, the typical minimum credit score is 620. For FHA loans, it’s 580. Other loan types, like VA loans, have more flexibility.

How long does it take to buy a house in Hawaii?

The time it takes to buy a home can vary. It typically takes between 30 and 60 days to close on a home once you’ve made an offer. But the initial search could take considerably longer, especially if you are out of state.

What salary do I need to afford a home in Hawaii?

This depends on the price of your home, as well as your personal lifestyle. But using an often cited rule that you can afford a house that’s 2.5 times your salary, it would take a household income of $307,760 to afford the median Hawaiian home value of $769,400. You may want to consult a financial advisor to determine if buying a house is a good investment.

How much are Hawaii’s property taxes?

Here is some good news. Hawaii has the lowest effective tax rate of any state in the nation at 0.27%. The exact tax rate varies from county to county. There are also exemptions from property tax for many groups, based on age, disability, and other factors.

Bottom line: The Aloha State has your new home

Buying a home in Hawaii comes with some challenges, such as its distance from the Mainland, the cost of living, and the high price of housing. But with the lowest property taxes in the nation and plenty of sun, beaches, and outdoor living, the lifestyle is appealing to many. If you plan carefully and save appropriately, a piece of paradise could be yours.

If you’re ready to buy a home in the Aloha state, you can reach out to Rocket Mortgage^® to apply for a home loan.

¹To qualify for this offer, you must meet all standard FHA eligibility requirements. In addition, your total mortgage payment, including taxes and insurance, cannot exceed 38% of your income, your debt-to-income (DTI) ratio cannot exceed 45%, and you must have 12 months of verifiable housing history immediately prior to your application, no late payments 30 days or greater in the last 12-months, and no derogatory marks on your credit report. Not available on jumbo loans. Asset statements may be needed, no more than 1 day of non-sufficient fund fees are allowed in the most recent 2 months prior to application. Additional restrictions/conditions may apply.

²Rocket Mortgage is a VA-approved lender, not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency.