A new University of Hawaiʻi Economic Research Organization report found that though the local housing market is stable and improving, increasing supply still has its challenges.
The annual Hawaiʻi Housing Factbook about the market in 2024 showed that less than 25% of local households could afford the mortgage for a median-priced single-family home, which costs nearly $950,000 — a roughly 6% increase over 2023.
Additionally, rent is on the rise, insurance premiums have grown, and the pace of building new housing continues to be at a historic low.
“In the 1970s, the state built something like 150,000 units of housing. And in the ’80s, we built fewer than that … and every decade we’ve built less and less housing. And for the 2020s, we’re on pace to build less still,” said Justin Tyndall, a UHERO economist and UH assistant professor.
“I think this is the crux of the problem. We have some analysis looking across counties, places where we have expanded housing supply. Where we have expanded housing supply, have had less rent increases. … There is this pretty undeniable connection between housing supply and affordability and prices.”
Condominium prices actually fell between 2023 and 2024. The $600,000 median price last year was a 6% drop from 2023, partially because many sold below market price thanks to state and county affordability programs, but also because insurance market disruptions suppressed demand.
New housing projects and recent policies have tried to aid the local housing supply, but some say Hawaiʻi needs more “ambitious” moves to meet demand.
