A new report shows slight increases in housing affordability in Hawaiʻi, but homeowners association fees, insurance costs and disaster risk continue to keep the state in its ongoing housing crisis.
The University of Hawaiʻi Economic Research Organization releases an annual housing factbook to reflect the current market and the general scope of affordability across the state, often comparing it to the rest of the country and breaking the data down by county.
Trey Gordner, a policy researcher and data scientist with UHERO, said cost of financing has come down, leading to the slight increase in overall affordability.
“The total picture of affordability is a bit more nuanced … because if your carrying costs, particularly those around insurance and HOA fees are coming up, it eats into that affordability,” Gordner said. “We still think it’s a net gain, but they could potentially counterbalance.”
Gordner said the slight affordability increase seen over the past few years is reflected in how much an average family needs to make to be able to afford a single-family home. Roughly five years ago, a family would need to make 200% of the average median income to afford said home, but the 2026 data revealed this has dropped to 180%.
But this still puts a single-family home out of reach for about four-out-of-five families, according to the study.
HOA fees are also a major player in affordability. Hawai’i continues to have one of the highest percentages of residents paying HOA fees — at about 42% compared to the national average of 25%.
The study also analyzed how floods and other natural disasters could impact insurance rates. The Federal Emergency Management Agency is set to remap flood zones within the next month, which could add over 3,000 parcels to “high-risk” zones, increasing flood insurance rates.
“Another 3,700 parcels, mostly concentrated around streams and small waterways which weren't mapped in the last round of FEMA maps, will have to pay flood insurance if they wish to qualify for a government-backed mortgage,” Gordner said. “That's something that is happening not only at FEMA with respect to flood insurance, but that's happening at private insurance companies for all sorts of insurance as well.”
