According to recent data from the Census Bureau’s American Community Survey, housing costs in Hawaii were the highest in the nation if you are renting, with a median of $1,291 per month. The nation’s median rent was $855 per month.
Median housing value in Hawaii was $525,400, and also the highest in the nation. Only California, Massachusetts, New Jersey and the District of Columbia had a median home value higher than $300,000, and the national median was $179,900.
This means that if you intend to buy Maui real estate and rent it out, the upfront investment is likely to be higher than other places, but the rental amount is also likely to be higher than other places.
Hawaii’s high medians are not surprising, because there is less variability in housing quality and value than other states. Take California for example. Forbes created a list of most expensive cities in the U.S., which includes (among other factors) the cost of a two-bedroom, unfurnished, luxury apartment, which we have included here:
- New York, N.Y. $4,300
- Los Angeles, Calif. $2,400
- White Plains, N.Y. $2,200
- San Francisco, Calif. $2,500
- Honolulu, Hawaii $1,800
California has two cities among the top five most expensive cities in the nation. Although Honolulu’s cost of rent for a two-bedroom, unfurnished, luxury apartment is $600-$700 lower than Los Angeles and San Francisco, Hawaii still beats California in median rent. Why is this? Because California is an enormous state with many affordable cities and neighborhoods, some of which are undesirable places to live due to high crime rates. Hawaii’s homes are more consistent in their high desirability than most other states, and we can certainly say that with confidence if you are looking at Maui real estate. On that note, if you need any assistance finding the right West Maui real estate to meet your needs, we would love to assist you. You’ll find our contact information at the bottom of the page. Mahalo!