According to a Census Bureau report, Hawaii’s most affluent areas have the most passive income, with Kaanapali taking the top spot in the state. As Kaanapali real estate specialists, it’s an unsurprising trend in the demographic of the area’s home buyers. For reference, passive income is defined as an income source that is generated at regular intervals requiring little to no personal effort. Sources like bank account interest, stocks and bonds, dividends, royalties, rents, etc.
According to the report, no less than 68.7 percent of Kaanapali’s households receive some type of passive income. Maunawili in Kailua came second with 61.3 percent of households earning passive income. By comparison, in other affluent places in the country, 41 percent of households earn passive income.
Of course luxury Hawaii real estate is attractive to buyers who receive passive income, both as an investment and for personal enjoyment. In short, the affluent choose Hawaii. Given all the beauty that Maui has to offer, along with the healthy lifestyle trends, this choice is a natural one.
This data came from a five-year version of the Census Bureau’s 2013 American Community Survey, which is its most recent data source. Looking at the national norm for passive income including all neighborhoods, we see 21.7 percent of households benefitting. But keep in mind that there are a lot of writers in the world, a lot of books out there, written by Americans, especially now when self-publishing is easy. Since royalties from these sources are considered passive income, it’s worth noting that this income could be very small for a lot of the households counted in the study.
If you’re in the market for Maui real estate, feel free to ask us any questions that you need answered about the process. We’ve been in business for forty years, and couldn’t have achieved our success without applying our experience and knowledge of the Maui real estate market and providing our services with integrity. Should you need to contact us, you’ll find our phone and email information at the bottom of the page. Mahalo!