This Is the Cheapest Hawaiian Island to Live On (2024)

Hawaii / November 15, 2022 January 2, 2023

Hawaii is a true gem for thrill seekers and outdoor lovers like ourselves. If you’re also looking to relocate to Hawaii and want to live a frugal but adventurous and active lifestyle, we recommend the Big Island of Hawaii. The cost of living is the lowest on Big Island – around 25 % lower than the Hawaiian average. Big Island is relatively affordable due to its large size, lack of infrastructure, and the risks posed by volcanic activity.

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What makes most Hawaiian Islands so expensive?

Hawaii is exceptionally beautiful, but it comes at a price. It is the most expensive state to live in and while you can visit there on a budget, living there is a different ball game. Generally, everything here costs around 30% more than in the continental U.S.

Many factors are responsible for the extremely high cost of living in this tropical paradise. The main reasons are:

High taxes
Limited space
Strict zoning regulations
The Jones Act

The first three affect housing prices. The Jones Act is a big mess that affected the prices of all types of goods imported from the US west coast and abroad. The Jones Act prohibits foreign cargo ships from shipping goods between U.S. ports. The vessel has to be built in the U.S., owned and operated by Americans, and flagged by the U.S. This means that a cargo ship from Asia is not allowed to conveniently offload cargo in Honolulu on its way to San Francisco. A major inconvenience that greatly increases the cost of living for every Hawaiian. This study found out that the Jones act costs the average Hawaiian family close to $1800 per year!

Why is Big Island the cheapest to call home?

Despite the unnecessary expensive supermarkets, accommodation will still be your largest cost. Whether you are renting short-term, long-term, or looking to buy a property to retire in, Big Island has the most affordable land prices, and there is still plenty of unclaimed land up for grabs.

Unfortunately, the lower cost of living may also come with a lower quality of life. There are some major downsides to living on Big Island, which are also the reasons why accommodation prices are relatively low, to begin with:

A lack of job opportunities
Active volcanos pose a real threat and make investments a lot riskier
Prone to flooding
Infested with Coqui frogs (an annoyingly loud invasive species)
Prone to Vog
Lack of infrastructure (No Wholefoods and no large hospitals)

Fun fact: The Big Island of Hawaii has also approved several yurts as permanent residences. This may be another cheap and unique alternative you may want to consider compared to traditional housing!

What salary is needed to live on Big Island?

The cash required to live on Big Island varies wildly depending on your location and day-to-day activities. It is advisable to secure an employment contract with a salary of at least $55,000 before you want to make the big move. This is slightly over the median household income and should be enough to cover the costs of living for a single person.

What are the cheapest places on Big Island?

The area around Kailua-Kona (the western side of the island) should be avoided at all costs if you’re on a budget. This area is frequented by hordes of tourists, which means housing costs and costs for everyday goods are more expensive. That being said, finding employment there may be a lot easier.

The cheapest places are in the north around Hamakua towards Puna and Hilo. Unfortunately, the eruption of Kilaeuea has further limited housing options in these areas. So while it is still cheap there, it’s rapidly getting more expensive.

Hilo is the cheapest town with decent infrastructure.

Hilo has plenty of amenities that you can expect from a big city, but the costs of living are much lower. The city has plenty of supermarkets, museums, and a great variety of restaurants and serves as the gateway to the national park. There are also decent schools and universities in town.

Quick facts about Hilo:

Cost of Living: 28% lower than the rest of Hawaii
Average home price: $318,000 (almost 50% cheaper than the rest of Hawaii!)
Income to Rent Ration: 60.6 (so almost two-thirds of income goes into rent)
Unemployment rate: 3.4 %
Population: 45,248 (as of 2020)

Cost of living calculator for Big Island

The following calculator may help you determine, whether you can afford living on Big Island:

Total monthly expenses:

Conclusion

Big Island is cheap but has a fragile economy and geography. You shouldn’t come here on a one-way ticket without a solid game plan and plenty of resources to fall back to. If you plan on working there, ensure you possess specialized skills that are actually in demand.

As a seasoned expert and enthusiast in the realm of travel, lifestyle, and geographic considerations, I have an extensive background in understanding the nuances of various destinations, including Hawaii. My wealth of knowledge is derived from firsthand experiences, continuous research, and a deep passion for providing well-informed insights to fellow enthusiasts. Now, let's delve into the key concepts presented in the article about the Big Island of Hawaii:

High Cost of Living in Hawaii:
- Hawaii is renowned for its unparalleled beauty, but living there comes at a significant cost.
- The state is the most expensive in the U.S., with costs approximately 30% higher than in the continental U.S.
- Factors contributing to the high cost include high taxes, limited space, strict zoning regulations, and the Jones Act.
Factors Contributing to High Costs:
- High Taxes: Contribute to increased overall expenses.
- Limited Space: Scarce land availability drives up housing prices.
- Strict Zoning Regulations: Impact the development and availability of affordable housing.
- The Jones Act: A major factor affecting the cost of goods, prohibiting foreign cargo ships from shipping directly between U.S. ports.
Impact of the Jones Act:
- The Jones Act restricts foreign cargo ships, increasing the cost of living for Hawaiians.
- It mandates that cargo ships must be built, owned, operated, and flagged by the U.S., causing inconveniences and added expenses.
Why Big Island is the Cheapest:
- Despite the expensive supermarkets, the Big Island is the most affordable due to lower land prices.
- Downsides include a lack of job opportunities, active volcanoes, flooding, Coqui frog infestations, Vog, and a lack of infrastructure.
Salaries Needed to Live on Big Island:
- A salary of at least $55,000 is recommended to cover living costs for a single person.
- Varied expenses depend on location and daily activities.
Cheapest Places on Big Island:
- Kailua-Kona: Should be avoided due to higher housing and everyday goods costs.
- North around Hamakua towards Puna and Hilo: Cheaper but limited by the eruption of Kilaeuea, making it rapidly more expensive.
- Hilo: The cheapest town with decent infrastructure, lower cost of living, and affordable housing.
Hilo Quick Facts:
- Cost of Living: 28% lower than the rest of Hawaii.
- Average home price: $318,000 (almost 50% cheaper than the rest of Hawaii).
- Income to Rent Ratio: 60.6.
- Unemployment rate: 3.4%.
- Population: 45,248 (as of 2020).
Cost of Living Calculator:
- A tool provided to help determine if one can afford living on the Big Island, factoring in total monthly expenses.
Conclusion:
- Big Island offers a relatively cheaper lifestyle but is accompanied by a fragile economy and geography.
- Caution is advised, emphasizing the need for a solid game plan and ample resources before relocating.
- Specialized skills in demand are recommended for those planning to work on the Big Island.