The Average Home In Hawaii Is Worth A Lot More Than You Realized

After just one trip to Hawaii, you know exactly what it feels like to dip your toes in paradise, making it difficult to leave. Even if you try to recreate those same feels by bringing a touch of Hawaii back to your lawn, it doesn't give you the same vibe. So, if you decide to trade your mainland ZIP code for a permanent lanai view and perpetual breeze, buying a home on any one of its eight main islands is next-level expensive.

According to Zillow, the average price of a home in the continental U.S. is about $370,320. The average cost of a home in Hawaii is more than $830,000, making it one of the most expensive housing markets in the U.S., with prices more than twice the national average. That average is for a typical home, not a spacious beachfront property with a private dock, infinity pool, or scenic view. But there is at least some good news. Prices are actually 0.5% lower than last year's.

So what's driving these costs only a few can afford? It all comes down to economics 101: supply and demand. Sure, Hawaii's beautiful views don't hurt the pricing market, but it's deeper than that. There's only so much available land in Hawaii, which means inventory is tighter than in most areas of the States. There are, of course, also other factors that play a part in the high home costs, depending on where you're looking.

If you're shopping for a home in Hawaii because it's one of the best states to live, the first, and maybe most important, decision you'll make is which island you want to call home. That choice will determine your price range more than almost any other factor. The islands don't just feel different. Each one has its own real estate story, which makes prices vary widely. 

The third-largest Hawaiian island, Oahu, has a median home price of $1.1 million. That's because there is limited land and a very congested population. The average price of a house on the Big Island of Hawaii is just under $550,000. While this might sound much more affordable, don't get too excited yet. The substantial price drop is due to the risks of active volcanoes and lava flows. Buyers hoping to purchase a house on the Big Island often find it harder to get a loan due to specific loan exclusions. 

If you want ocean views, resort-style living, and an unmatched lifestyle, Maui is your best bet, but you will have to pay out the wazoo. The average price for a home in Maui is a little over $996,000, although prices haven't been increasing quite as fast as they have in the past. Of course, if living on a tropical Hawaiian island isn't in the cards right now, you can always hop on the new Hawaiian design trend that's a more affordable slice of paradise.