Hawaiʻi Housing Factbook 2026: Affordability improves modestly, but risks mount
from UH News, May 7, 2026
The University of Hawaiʻi Economic Research Organization (UHERO) has released the Hawaiʻi Housing Factbook 2026, the fourth edition of its annual report offering detailed analysis of the state’s housing market. The report finds that Hawaiʻi’s housing crisis remains severe, despite modest improvements in affordability driven by flat home prices, rising incomes and lower mortgage rates in 2025. The Factbook also highlights growing risks from insurance costs, homeowners association fees, slow permitting, natural disasters and policy uncertainty.
“The data reflects our state’s deep housing crisis. Restoring affordability will require the production of more housing, and confronting the barriers that prevent homes from being built,” said lead author and UHERO Associate Professor Justin Tyndall.
Key findings from this year’s Factbook include:
--Home prices have leveled off, but remain extremely high: The statewide median price of a single-family home was $950,000 in 2025. Median single-family prices rose 1% statewide, while condominium prices declined 2%. Existing-home values, measured by UHERO’s Repeat Sales Index, were flat.
--Affordability improved for a second year, but homeownership remains out of reach for most households: Affording the median single-family home still requires more than 180% of the state median income, putting it within reach for only about one-in-five Hawaiʻi households. Condominium affordability improved more sharply, although rising HOA fees and insurance costs may offset some of those gains.
--Housing costs now include rising insurance and association-fee burdens: New Census data show that 42% of Hawaiʻi homeowners pay monthly HOA or AOAO fees, compared with 25% nationally. Hawaiʻi also had the second-highest median monthly HOA fee in the country at $470. In Honolulu, real estate listings from February 2026 showed a median advertised HOA/AOAO fee of $882. Insurance costs are also rising rapidly, with Hawaiʻi’s aggregate property insurance premiums paid in the state increasing 13% in 2024—well above the national average and the largest annual increase in over a decade.
--Permitting delays continue to constrain new housing supply: County permitting reforms have produced mixed results. Hawaiʻi County and Maui County recorded faster single-family permit processing times in 2025, while Kauaʻi’s delays worsened. In Honolulu, UHERO was unable to obtain records after the launch of the city’s new permitting system, but permits issued in the first half of 2025 continued to show long processing times.
--Lahaina rebuilding is moving unevenly: Two and a half years after the 2023 Maui wildfires, Maui County reported 991 permits to rebuild permanent structures, with 634 issued. UHERO’s analysis finds that single-family homeowners, including vacation-home owners, are receiving permits faster than owners of long-term rentals, apartments and businesses. About 57% of fire-damaged lots showed no permit activity to date.
--Policy changes are reshaping Maui’s condo market: Maui County’s Bill 9, which phases out roughly 7,000 short-term vacation rentals in apartment-zoned buildings, has already cooled the condo market. Maui condo prices in 2025 were down 11% from 2023, while prices for condos on the Minatoya list were down 16%.
--Extreme weather and flood-insurance changes add new housing-market risks: Severe Kona Low storms in March and April 2026 caused catastrophic flooding, landslides, evacuations and more than $1 billion in estimated damage. In June 2026, updated FEMA flood maps will add 3,700 net new parcels on Oʻahu to Special Flood Hazard Areas, raising costs and financing hurdles for 25% more property owners.
--Vacation rentals remain a major share of neighbor-island housing: Hawaiʻi had about 34,500 active advertised vacation rental properties in 2025, up from 33,600 in 2024. Vacation rentals account for 20% of all housing units on Kauaʻi and 15% in Maui County, compared with 2.5% in Honolulu.
The Factbook is based on a wide range of data sources and offers housing indicators at the state, county and zip code levels.
The full Hawaiʻi Housing Factbook 2026 is available at UHERO’s website.
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