Home Values in Hawaii
The median home value in Hawaii is $830,000. Hawaii remains the most expensive state for housing, second only to California in median price. Maui and Honolulu markets are driven by limited supply and strong demand from mainland buyers and retirees.
What Drives Home Values in Hawaii?
Several Hawaii-specific factors influence home values beyond national trends:
- Property tax burden: At 0.28% (avg. $2,741/year), Hawaii's taxes are below average — a buying incentive
- Assessment methodology: Hawaii has a complex tiered assessment system with different rates by property class and island.
- Buyer exemptions: The home exemption for owner-occupants on Oahu is $100,000 off net taxable value ($140,000 for homeowners age 65+).
- Financing limits: Conforming loan limit is $1,089,300 — Hawaii qualifies for the maximum high-cost conforming limit of $1,089,300 statewide — the same as Alaska.
Closing Cost Consideration
When estimating net proceeds from a home sale, account for closing costs and transfer taxes. Sellers in Hawaii typically pay 6-8% of the sale price in total transaction costs. Hawaii charges a conveyance tax ranging from 0.1% to 1.25% of sale price based on value thresholds. Properties over $10M face the highest rates. Title insurance and escrow fees are also elevated.
Frequently Asked Questions
What is the average home value in Hawaii?
The median home value in Hawaii is $830,000. Hawaii remains the most expensive state for housing, second only to California in median price. Maui and Honolulu markets are driven by limited supply and strong demand from mainland buyers and retirees.
How do property taxes affect home values in Hawaii?
Hawaii's effective property tax rate is 0.28%, with an average annual bill of $2,741. This low tax burden is a positive for Hawaii home values — lower carrying costs increase buyer demand.
What is the conforming loan limit in Hawaii?
The conforming loan limit in Hawaii is $1,089,300. Hawaii qualifies for the maximum high-cost conforming limit of $1,089,300 statewide — the same as Alaska. Buyers needing loans above this require jumbo financing.
How much are closing costs when selling a home in Hawaii?
Sellers typically pay 6-8% of sale price in total transaction costs. Hawaii charges a conveyance tax ranging from 0.1% to 1.25% of sale price based on value thresholds. Properties over $10M face the highest rates. Title insurance and escrow fees are also elevated. Buyers pay an additional $7,400 in closing costs.