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Before everyone gets all excited and says, wow - only $637K for an average single family home, anything in that price range that has a reasonable commute to UH (Kailua, Pacific Heights, Hawaii Kai)isn't likely big enough for a family with 3 kids and/or is extremely rough around the edges. For that price range you'd have to head towards Ewa Beach, Kapolei, or Mililani and bumper to bumper traffic of over 60 minutes each direction. More like $800K or higher in the commutable neighborhoods and you still aren't living lavishly.
We are just starting our search in Hawaii. Haven't picked an island yet, but have gotten lots of good info on these boards.
I'm curious - with what you said is an average of $637K for a smallish, single family home that is a fixer in the areas you mentioned on Oahu, may I ask just WHO are purchasing these homes at those prices? With all the posts I've read here about how the wages in Hawaii are low in comparison to cost of living, are resale homes selling at all? I'm just not understanding the demographics of who would/could even buy those homes with Hawaiian salaries. My daughter is a banker, and she told me that although home lending applications are up, her bank's criteria for lending has tightened up so much and the down payments on conventional loans (where you get the best interest) need to be between 10 and 20%, just like the old days. So that could be a down of close to $130K if you don't qualify for a VA or FHA loan.
I'm curious - with what you said is an average of $637K for a smallish, single family home that is a fixer in the areas you mentioned on Oahu, may I ask just WHO are purchasing these homes at those prices? With all the posts I've read here about how the wages in Hawaii are low in comparison to cost of living, are resale homes selling at all? I'm just not understanding the demographics of who would/could even buy those homes with Hawaiian salaries. My daughter is a banker, and she told me that although home lending applications are up, her bank's criteria for lending has tightened up so much and the down payments on conventional loans (where you get the best interest) need to be between 10 and 20%, just like the old days. So that could be a down of close to $130K if you don't qualify for a VA or FHA loan.
Right now it is a sellers market on Oahu. There are only 18 homes for sale from downtown, to Kailua, to Hawaii Kai - that is at least 1,600 sq ft and between $550,000 and $650,000. Source, Oahu Real Estate
Who are buying the expensive homes? While many people work for low wages in Oahu - there is plenty of high wage earners (doctors, lawyers, executives, middle managers, etc) that you would find in any big city. Many people bought homes in the 1980's and the $350,000 house has increased to $800,000 and the house is paid off. People inherit money. They bought homes on the west side and can now upgrade. Some moved away, worked on the mainland, and are returning with cash in their pockets. Some move here for the first time with cash. But, I suspect - the biggest demographic buying many of the more expensive home are those who purchased their first home 20-30 years ago.
Except for the homes that are overpriced trying to take advantage of the sellers market - houses are being snapped up as quickly as possible - right now, single family homes days on market is26 days.
Right now it is a sellers market on Oahu. There are only 18 homes for sale from downtown, to Kailua, to Hawaii Kai - that is at least 1,600 sq ft and between $550,000 and $650,000. Source, Oahu Real Estate
Who are buying the expensive homes? While many people work for low wages in Oahu - there is plenty of high wage earners (doctors, lawyers, executives, middle managers, etc) that you would find in any big city. Many people bought homes in the 1980's and the $350,000 house has increased to $800,000 and the house is paid off. People inherit money. They bought homes on the west side and can now upgrade. Some moved away, worked on the mainland, and are returning with cash in their pockets. Some move here for the first time with cash. But, I suspect - the biggest demographic buying many of the more expensive home are those who purchased their first home 20-30 years ago.
Except for the homes that are overpriced trying to take advantage of the sellers market - houses are being snapped up as quickly as possible - right now, single family homes days on market is26 days.
Thanks for the info! It's becoming a seller's market here in Arizona again too. Well, in certain parts, and slowly but surely, but it IS turning. One the local news last night, they said property values of sales here have increased 32% since last October.
Having lived in Japan, Hawaii, and the mainland myself, I often wonder whether living in Japan is really
that much more expensive if one is willing to 'adjust'. If someone wants to get a place in Japan with
comparable square footage as in the US, yes, living in Japan is going to be way more expensive. But
if one is satisfied living in - say a 2LDK condo in Japan, the rent is actually pretty reasonable, and
probably cheaper than a 2 bedroom apartment in Hawaii. The condo in Hawaii would
be bigger though, as you'd be challenged to find a 400-500 sqft 2 bedroom in the US, which is the size
of a typical 2LDK/2DK is in Japan.
I'd think it would be quite hard for a family to live comfortably with $45K in Hawaii, especially after
paying taxes and rent. And that assumes one has a job that provides health insurance.
which is the size of a typical 2LDK/2DK is in Japan.
Could you explain the acronyms? I'm curious.
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I'd think it would be quite hard for a family to live comfortably with $45K in Hawaii, especially after paying taxes and rent. And that assumes one has a job that provides health insurance.
Indeed. But keep in mind that each island is different, and different areas on each island can vary a lot. On the Big Island, Puna District, you can currently buy a 2BR/1BA (2 bedroom, 1 bath) for around $150K, not a fixer, ready to move in. A neighbor's nice 3BR/2BA recently sold for $172K after 2 YEARS on the market.
Three kids and a wife plus you makes five mouths to feed. I know how to add this up because my parents sent me to private school. Had I gone to public school in Hawaii, I'm not sure I could come up with an answer. I know I CERTAINLY WOULDN'T BE ABLE TO SPELL OR WRITE THIS POST.
You have already gotten some good answers, but thought I would provide a little more information about the private school situation. Tuition at the bigger schools is creeping up towards $20,000, although there is financial aid available. If you are willing to do parochial school, you can keep it anywhere from $5,000 to $9,000. Depending how old your children are and the schools you are applying to, the application process can be long and complicated. Think applying to college - have to take the SSAT, get letters of recommendation, interview and so on. It can be very competitive to get into some of the schools. Private schools - which your child attends, where they are trying to get in, etc., is a huge topic of conversation among parents here. Almost obsession level, really! As someone who grew up on the mainland attending public school it was surprising! Not trying to be negative about it in any way, but it is different.
Private schools - which your child attends, where they are trying to get in, etc., is a huge topic of conversation among parents here. Almost obsession level, really!
An interesting observation, and actually pretty true. And it happens from K-12, and especially when it is time for a student to be shifting in to a new school such as between elementary and middle, and between middle and high school (is it now time to "go private", or "go public"?.)
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