Hawaii’s condo fees are among the highest in the nation | Blog | Ahearn Karlovsky (2024)

FAQs

Why are Hawaii condo HOA fees so high? ›

Natural Climatic Factors Hawaii's unique climate plays a significant role in the heightened HOA fees, primarily due to the natural wear and tear sustained by buildings and the increased insurance costs.

The median sale price of a new two-bedroom condominium in Hawai'i is about $670,000, more than double the price in the average state.

Honolulu, Hawaii, claims the top spot among cities with higher HOA fees. Residents within the picturesque city limits typically pay HOA fees that average around $730.75, over $400 more than the national average of $293.26.

An oceanfront penthouse in Honolulu sold Thursday for $27.5 million in a private deal—the most expensive residential property ever sold in the city, according to agents involved in the deal.

Costs to Repair

The cost to repair buildings, amenities, and shared spaces in the community is higher on the islands than it would be in a comparable community in the middle of the mainland. This is reflected in your HOA fees, which need to be sufficient to cover the increased repair costs.

In Hawaii, condos are often built with closer proximity to the things you want to do. Dining, shopping, and beaches are likely going to be closer to the condos in your price range than the houses. This might also mean your commute to work is far more efficient, and maybe even bike able or walkable.

The year-to-date median sales prices for single-family homes as of November 30, 2023, dropped about 4.5% year over year to $1,060,000, while year-to-date median sales price for condominiums dropped only . 3% to $508,500. Prices stayed relatively flat due to a lack of inventory to sell.

Fun fact: Based on our data - last updated April 22, 2024 - the average price / ft² for a condo in Honolulu is $750 and the average maintenance fees / ft² is $1.13.

Disadvantages of HOAs

Community standards that help maintain property values. HOA fees can increase over time. Amenities like pools, common green areas, and fitness centers. Restrictions on what you can do.

What is included in HOA fees in Hawaii? ›

Now, consider all the other costs of homeownership covered by the HOA like roof repairs, pool service, landscaping, plumbing and electrical, garbage and recycling, cable, and facilities security. You will quickly start to observe how HOA fees in Hawaii make good financial sense.

HOA fees in Honolulu will run between ~$0.60 to ~$1.50 per square foot and depending on the size of the condo can cost around $350 to $1,000 per month.

Diamond Head & Waikiki - A neighbor of the buzzing tourist central Waikiki, Diamond Head includes some of the best prime properties on Oahu, such as million-dollar homes with ocean vistas and stunning views of the extinct volcano.

Of all places in Hawaii with populations between 1,000 and 25,000, Kaanapali ranks as the wealthiest. The average household income in the town stands at $223,037, about $109,700 more than the statewide average. All data in this story are five-year estimates from the U.S. Census Bureau's 2021 American Community Survey.

The real estate holdings of just 37 people—billionaires all—make up 11% of the private property in the entire state.

“Fee simple” means that you buy a property and own it indefinitely. Of course, you're responsible for any mortgage payments, property taxes, and local fees, but you can: Sell the property to someone else, rent it out, or pass it on to another owner in the case of your death.

Historical data shows that condos tend to be more volatile in value than single-family homes. They often experience sharper declines during a housing market downturn and may also appreciate more slowly in a rising market. This volatility adds to the lender's risk, which is then reflected in higher condo interest rates.