How Much Do Apartments in Hawaii Actually Cost?

Hawaii’s unique geography and desirability contribute to its reputation for elevated living expenses, particularly concerning housing. The island state presents a distinct financial landscape for those seeking apartment living. This article will provide a comprehensive overview of apartment costs in Hawaii, covering statewide averages, island-specific variations, influential factors, and additional expenses.

Overall Apartment Cost Landscape

Apartment costs in Hawaii are higher than the national average. As of August 2025, the average rent across Hawaii is $1,816 per month. This statewide average includes studios at $1,500, one-bedrooms at $1,816, and two-bedrooms at $2,307 monthly.

For purchases, the median price per square foot across Hawaii is $737. Purchase prices vary based on apartment size, location, and condition.

Apartment Costs by Island

Oahu, home to Honolulu, has the highest housing costs. Honolulu’s average rent is $1,708, with studios at $1,500, one-bedrooms at $1,708, and two-bedrooms at $2,210. For apartment purchases, Honolulu County records a median price of $684 per square foot.

Maui has high housing expenses. The median apartment purchase price in Maui County is $1,058. Maui County rentals average $3,063 for studios, $3,238 for one-bedrooms, and $3,534 for two-bedrooms. Kauai County’s apartments have a median purchase price of $981 per square foot.

Hawaii Island offers more affordable housing compared to Oahu and Maui. The median apartment purchase price in Hawaii County is around $801 per square foot. For rentals, Hilo on Hawaii Island has lower average rents, with one-bedroom apartments around $1,300, while Kailua-Kona rates might be higher.

Key Factors Influencing Apartment Prices

Several characteristics of an apartment and its surroundings influence its price. The size of an apartment is a determinant of cost; larger units with more rooms command higher prices. Location within an island also influences price, with urban or coastal areas typically costing more than suburban or rural settings. For example, a unit in downtown Honolulu or Waikiki will generally be more expensive than a comparable apartment in a less densely populated area like Kapolei or Waianae.

Features like a swimming pool, fitness center, dedicated parking, security systems, in-unit laundry, or ocean views can add a premium to rental and purchase prices. The age and overall condition of the building also impact price; modern and well-maintained properties have higher values than older properties. Whether an apartment is offered furnished or unfurnished can affect its rental price, with furnished units commanding a higher monthly rate.

For apartment purchases, the distinction between leasehold and fee simple ownership is a financial factor. Fee simple ownership grants full ownership of both the land and the structure, similar to traditional homeownership. Leasehold ownership, conversely, means the buyer owns the structure but leases the land from a landowner for a specified period, typically 50 to 99 years. Leasehold properties have lower upfront purchase prices but involve ongoing lease rent payments and the potential for lease renegotiation or expiration, which can affect long-term value and resale. This distinction is relevant in Hawaii’s real estate market.

Renting Versus Buying Apartments

Renting versus purchasing an apartment in Hawaii presents distinct financial considerations. Renting typically involves a monthly rent payment and an upfront security deposit, which cannot exceed one month’s rent according to Hawaii law. This option offers flexibility and requires a lower initial cash outlay, making it accessible for many.

Purchasing an apartment requires a substantial initial investment and ongoing financial commitments. A down payment is typically required, often ranging from 5% to 20% or more of the purchase price. Beyond the down payment, buyers face closing costs, which typically range from 2% to 5% of the apartment’s purchase price.

After the initial purchase, apartment owners incur recurring expenses such as monthly mortgage payments, property taxes, and potentially homeowner’s association (HOA) fees. Hawaii has one of the lowest effective property tax rates in the nation, averaging around 0.27% of the assessed property value. This low property tax can mitigate some of the ownership costs compared to mainland states with higher rates. Given the high purchase prices, renting remains a viable option for many residents.

Additional Housing Expenses

Beyond the primary rent or mortgage payment, apartment living in Hawaii involves several additional recurring expenses. Utilities are a consideration, with electricity rates in Hawaii are high in the United States. Average monthly utility costs for a Hawaiian apartment can range from $264 to $563, with electricity bills alone reaching $190 to $393 per month. Water and sewer costs range from $110 to $150 per month, with internet and cable adding to monthly expenditures.

For apartment owners, and sometimes renters, Homeowners Association (HOA) fees are an expense. These monthly fees cover the maintenance, repair, and insurance of common areas and shared amenities within the apartment complex. The average statewide HOA fee in Hawaii was $762 per month, higher than the national average due to maintenance and insurance costs in a tropical climate. In Honolulu, HOA fees can range from $350 to over $2,000 per month, depending on the unit size and complex.

Parking fees can also be an additional expense. Renter’s insurance averages around $21 to $23 per month. For apartment owners, homeowner’s insurance is required and averages about $413 per year. Property taxes, while low in percentage, are an annual cost for owners based on the assessed value of the apartment.