It did not come as a surprise to me when I read the Headline on Honolulu Advertiser the other day stating that “Isle Housing Cost  Is Now Highest In The US” .  As one  Hawaii resident said in the article “that’s the price of paradise”.  The article encompasses the all Hawaii islands but I want to focus on what it said about Maui.  Here’s the lowdown:

  • Maui has the highest median value of an owner occupied unit with a mortgage at $636,800, followed by Oahu ($566,800) and Big Island ($417900).
  • Monthly housing costs for owner-occupied units with a mortgage also were highest on Maui at $2,564, with Oahu next at $2,316 and Big Island t $1,848

According to Chuck Wathen, a retired developer and affordable housing advocate, home prices are high because of the scarcity of land open to development and because intense regulations prevent builders from responding quickly to sudden demands in housing. A resulting short supply of units jacks up prices.  I agree to Wathen’s observations. I work for a developer and it takes us years to get approval for a subsivision even though the intent is to build affordable homes.  On the other hand, proponents of open space and sustainability efforts would argue that restrictions that prevent a developer from converting agricultural land to urban residential are  good because it prevents sprawl and inappropriate us of ag land.  Whatever it is, the fact remains that housing is very expensive on the valley isle.

However, if you are one of those dreaming to own a house on Maui, do not fret too much.  According to Dennis Oshiro of the Hawaii Homeownership Center, high home values are still within reach for many who think they can’t afford it. “Everything is relative” he said. Buyers are being helped by low interest rates, declining home prices (at this time), foreclosure bargains, and the $8,000 federal tax credit for first-time homebuyers.

The median value for an owner-occupied piece of paradise is $560,200 on Hawaii according to 2008 American Community Survey one-year estimate released on September 21, 2009.  Almost half of the units in Hawaii are valued between $500,000 and $999,999., while 10 percent are valued at $1 million and up.

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Coming up next: A new subdivision in Kihei in which you can buy a home with an attached ohana for as low as $399,999.  Aloha!