What Is the Median Income in Hawaii?

Understanding Median Income in Hawaii

Hawaii’s distinct economic environment, shaped by its island geography, reliance on tourism, and a notably high cost of living, requires specific attention when examining income levels. Its unique position in the Pacific influences the price of goods and job availability. Understanding median income illustrates the economic realities faced by residents. This figure provides a clearer picture of financial well-being than a simple average, accounting for the state’s unique challenges and opportunities.

Understanding Median Income in Hawaii

The most recent data from the U.S. Census Bureau’s American Community Survey (ACS) for 2023 indicates Hawaii’s median household income was approximately $96,900. For context, the national median household income for the same period was around $75,000.

Individual income also offers a different perspective on earnings within the state. The median individual income for Hawaii in 2023 was approximately $51,000. This contrasts with the national median individual income, which stood at about $40,000 for the same year. These figures highlight Hawaii’s higher nominal income levels compared to the rest of the United States.

Comparing these figures shows that while Hawaii’s incomes appear higher than the national average, this numerical advantage must be considered within the state’s unique economic framework. This is because the state’s high cost of living significantly impacts purchasing power, making direct comparisons challenging.

Factors Shaping Hawaii’s Median Income

Hawaii’s median income is significantly influenced by its high cost of living. Housing expenses are among the highest in the United States, with median home prices often exceeding $800,000. The state’s remote location necessitates importing a substantial portion of consumer goods, driving up prices for groceries, utilities, and other necessities. This means higher nominal incomes may translate into lower purchasing power for residents.

The state’s economy relies on a few dominant industries. Tourism is the largest sector, employing a significant portion of the workforce in hospitality, retail, and transportation. The military presence also contributes substantially, providing stable employment and driving demand for local services. Government jobs, at both state and federal levels, are another major employer, offering consistent wages and benefits.

Agricultural activities, particularly in specialized crops, also play a role, alongside a growing technology sector. These industries collectively shape wage structures and job availability across the islands. Labor market dynamics, including employment rates and demand for specific skills, also influence income levels. Unique island economy challenges, such as supply chain limitations and higher shipping costs, directly impact pricing and the wages needed to sustain a living.

Income Disparities Across the Islands

Median income is not uniform throughout the Hawaiian Islands, with significant variations observed from one island to another. Oahu, home to the state capital and largest population center, generally reports higher median household incomes compared to more rural islands. This is due to the concentration of diverse industries, government jobs, and a larger private sector on Oahu. Major military installations and a robust tourism infrastructure further contribute to its economic activity.

Islands like Maui and Kauai, while heavily reliant on tourism, may exhibit different income profiles due to their specific industry mixes and population densities. The Big Island (Hawaii Island), with its larger land mass and diverse economic activities including agriculture and scientific research, presents yet another distinct income landscape. These differences often reflect the primary economic drivers and employment opportunities available on each island. For example, resort-dominated areas might have different income distributions than those centered around agricultural production or local services.

These disparities can also be linked to demographic factors, such as the age distribution of residents and the proportion of households with multiple income earners. Urban centers typically attract a younger, more professional workforce, while rural areas may have a higher proportion of retirees or individuals employed in lower-wage service industries. Understanding these localized variations is essential for a complete picture of income distribution across the state.

How Median Income Data is Measured

Median income represents the middle point in an income distribution, meaning half of the households or individuals earn more and half earn less. This statistical measure is preferred over the average (mean) income because it is less susceptible to distortion by extremely high or low outliers. For example, a few very high earners would significantly inflate a mean income, but they would have a much smaller effect on the median. This provides a more representative view of a typical earner’s financial situation.

The primary source for median income data in the United States, including Hawaii, is the U.S. Census Bureau’s American Community Survey (ACS). The ACS is an ongoing survey that collects detailed demographic, social, economic, and housing information from a sample of the population every year. Data is gathered through mailed questionnaires, telephone interviews, and personal visits, ensuring a broad and representative sample. The survey’s findings are then used to produce estimates for various geographic areas.

Income data from the ACS typically refers to the calendar year prior to the survey’s release. For instance, data released in the fall of 2024 would generally reflect income earned during the 2023 calendar year, meaning there is an inherent lag in the reporting. It is also important to distinguish between “median household income” and “median individual income.” Household income includes the combined earnings of all individuals aged 15 and older within a single housing unit, while individual income refers only to the earnings of a single person.