For condo owners, Hawaiʻi has some of the highest homeowner association fees in the United States. And those higher costs are impacting homeowners and the industry.
Homeowner association fees in Hawaiʻi have been rising in recent years and now are only topped by New York.
More than 60% of Oʻahu condominiums sold this year have maintenance fees of $800 a month or more. That’s up from just 20% in 2019.
High maintenance fees aren’t limited to new luxury buildings with heated saltwater pools and rooftop lounges with ocean views.
Honolulu Board of Realtors data shows that more than half of Oʻahu condos selling for less than $500,000 this year had monthly fees of $700 or more.
Condos built in the 1960s and 1970s are also subject to high fees. The reason? Deferred maintenance, insurance premiums, and the cost of labor.
Size matters, too. The average monthly fee for a small condo — less than 500 square feet — was $715 in April. That’s 48% higher than the average in January 2019. And for condos that are more than 1,100 square feet, the average monthly fee shot up to more than $1,500. That’s up nearly 75% from seven years ago.
All this has a direct impact on how much homebuyers can afford. There are some state programs that help condo associations struggling with high insurance bills. Honolulu Board of Realtors CEO Suzanne Young said that should eventually offset the rising fees.
Young says first-time homebuyers can still find a place to buy. She says it takes more effort and work — but it’s not impossible.
