Housing market snapshot: Hawaii
Hawaii has among the highest median prices nationally, with limited land and strong demand on Oahu. Neighbor islands can trade lower than Honolulu but still far above most Mainland markets. An indicative median near $840,000 places Hawaii in a higher-cost cohort. Down payment size and PMI (or MIP) choices often matter as much as the note rate.
Property taxes and homestead notes
Hawaii's average effective property tax rate of roughly 0.28% sits below the national midpoint, so taxes often take a smaller slice of PITI than in high-tax states — though your county can still differ. Effective property tax rates are low as a percentage of value, but absolute bills still matter because assessed values are high. County rates differ across Honolulu, Maui, Hawaii, and Kauai.
Homeowners insurance in Hawaii
Indicative average homeowners insurance around $500/year is comparatively contained, but shop quotes for your ZIP — carriers price risk locally. Hurricane and lava (on Hawaii Island) exposures are unique. Hurricane insurance is often separate; some lenders require it.
Worked payment example
Using Hawaii's indicative median of $840,000, a 20% down payment of $168,000, a 6.75% rate, and local tax/insurance defaults, principal and interest is about $4,359 with a full monthly payment near $4,596 (including roughly $196 tax and $42 insurance). With only 5% down ($42,000), the same price point jumps to about $5,779 per month because the loan is larger and PMI is typically required — roughly $366 of that total.
A common comfort check is keeping total housing cost near 28% of gross income. At $4,596/month, that implies ballpark gross income around $196,982 per year before other debts. Run your real income and debts through our home affordability calculator rather than relying on this rule of thumb alone.
Adjust the calculator above, or open the home affordability calculator with your income and debts. Methodology details are on how we calculate.
Buyer programs to research in Hawaii
- Hula Mae / HHFDC affordable homeownership programs
- County employee and first-time buyer initiatives
- VA loans used by military households
Eligibility, funding, and income limits change. Confirm details with the program administrator or a participating lender before relying on assistance in your offer.
Practical tips for Hawaii buyers
- Always separate hurricane coverage from standard homeowners quotes.
- Leasehold vs. fee-simple tenure changes both price and financing.
- Shipping and living costs should sit beside PITI in your budget.
Figures on this page are educational estimates for Hawaii, not a lender quote. County tax assessors, insurance agents, and licensed mortgage professionals can confirm the numbers for a specific address. See our methodology page for the formulas and assumptions behind every estimate.