Moving to Hawaii is a dream for many, but it’s important to understand the costs before making such a big decision. Hawaii is one of the most expensive places to live in the United States, and your ability to afford it depends on several factors like where you want to live, your job, and your housing preferences. Let’s break it down into simple terms.
The Cost of Living in Hawaii
Hawaii has the highest cost of living in the United States. It scores 191.8 on the cost-of-living index, nearly twice as expensive as the national average. For comparison, the second-highest is Washington, D.C., with a score of 159. What does this mean for you? Everyday items, groceries, and services will cost much more than what you might pay elsewhere in the U.S.
Housing Costs: Buying or Renting?
Buying a House
Real estate in Hawaii is expensive. The average house price is around $850,000. The cost per square foot for homes is $694 on average, but it varies by location:
• Hilo: $440 per square foot (most affordable)
• Honolulu: $732 per square foot
• Kailua: $874 per square foot (highest)
To put it simply, buying a house in Hawaii will cost you more than most places in the U.S. For example, Hawaii’s average cost per square foot is 60% higher than California’s and 31% higher than New York City’s.
If you’re on a budget, you can find smaller homes or older houses in less desirable neighborhoods. Research is key before making such a big purchase.
Leasehold Properties
Hawaii has a unique system called “leaseholds.” In this arrangement, you buy a home, but not the land it’s on. Instead, you lease the land for a set period, often 30-99 years. Once the lease expires, the land goes back to the owner, and you may lose its value over time. Leaseholds can be more affordable initially, but they come with risks if you plan to live in the home for many years.
Renting
Rent in Hawaii is just as high as in the San Francisco Bay Area. You’ll pay a lot for less space compared to other places on the mainland.
Jobs and Income in Hawaii
One of the biggest challenges is the gap between salaries and living costs.
• Average salary in Honolulu: $61,243
• Average salary across Hawaii: $52,828
• Compare this to San Francisco, where the average salary is $96,500.
Even though rental costs in Honolulu and San Francisco are similar, salaries are 37% lower in Honolulu. This means your money won’t go as far in Hawaii.
Jobs in Hawaii also may not be as easy to find. Hawaii is a smaller state with fewer employers, which can make job hunting more challenging. You should research job opportunities and salaries in your field before moving.
Daily Expenses
Everyday costs like groceries, transportation, and utilities are much higher in Hawaii compared to most of the U.S. For example:
• Groceries are imported, which drives up prices.
• Gasoline and electricity are also costly because they rely on shipments from the mainland.
Can You Make It Work?
Here are some tips if you want to make living in Hawaii more affordable:
1. Adjust Your Expectations: Instead of a large home, consider a smaller house or condo.
2. Choose a Location Wisely: Areas like Hilo may offer more affordable options compared to Honolulu or Kailua.
3. Be Open to Job Changes: Research industries that pay well in Hawaii, like tourism, healthcare, or government jobs.
4. Consider a Roommate: Sharing rent can help lower your housing costs.
Is Hawaii Worth It?
Hawaii’s beauty, warm weather, and unique culture make it a desirable place to live. However, it’s important to weigh the higher costs and potential lifestyle adjustments before making the move. Take time to budget and plan carefully to see if you can make your dream of living in Hawaii a reality.