Rent vs buy in Hawaii
Only 1 city of 50,000+ is tracked, and there renting wins at today's numbers over 7 years.
Hawaii cities: rent or buy
| City | Verdict | 7-year result | Break-even (up to 30 yrs) | Typical home | Rent /mo |
|---|
Data comes from Zillow Home Value and Observed Rent indexes. The verdicts follow our rent vs buy method, which compares renting and buying at 20% down over 7 years.
Hawaii in short
A typical home in Hawaii is worth $833k. That steep price tag is what drives the whole math for you. In this state, we track just 1 city of 50,000+, and there renting wins by a wide margin over 7 years. A typical home in Honolulu costs $774,710, while rent there runs $2,715 a month. Over 7 years, renting wins by $95k. You don't break even on a purchase there until year 19. Pay that much upfront for a house and your monthly loan payment ends up much bigger than your rent check.
What you spend each year as an owner is actually pretty low. The property tax rate you pay is 0.27%, much lower than the 0.94% rate in the US. Homeowners insurance runs $1,289 a year, slightly under the US average of $1,308. Those mild tax and insurance bills help hold your ongoing costs down. Still, they can't cover an $833k home value unless you remain for a very long time.
In the past 10 years, home prices here rose 5.6% a year. It runs ahead of the long term pace, which is 4.3% a year. Buy and steady price growth builds wealth for you, though beating the starting cost takes years. Statewide, 37% of households rent. That share tops the 35% US share, and it covers 182,206 homes. Renters pay a median of $1,971 a month, well above the US figure of $1,413. Your rent bill here is high, though buying costs far more.
Our take: rent if you're staying in Hawaii around 7 years, and invest the money you save each month. Buying pays off only if you're sure you'll hold the home past year 19.