Cost of Living in Hawaii: A Guide for Homebuyers

Published on January 30th, 2024
10 min read

Joseph Gordon Editor
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Joseph Gordon is an Editor with HomeLight. He has several years of experience reporting on the commercial real estate and insurance industries.

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If you’re considering a move to Hawaii, knowing the state’s cost of living compared to where you live now will make your decision-making a lot easier. But what do you need to know about Hawaii’s cost of living? Don’t worry, we have your back.

In this guide, we break down the cost of living in Hawaii, from housing expenses to food and healthcare costs. We’ll provide data from state cost of living index tools and how Hawaii ranks in the nation for livability.

We’ll also share a handy set of additional online resources to measure and compare the cost of living expenses in different Hawaii communities.

What makes up the ‘cost of living’ in Hawaii?

When you’re planning to live in a new state, the cost of living there will be a combination of expenses required to maintain your desired lifestyle. Statista, a leading market data platform, defines “cost of living” as “the monetary cost of goods and services necessary to maintaining a certain standard of living.”

This overall cost will vary significantly based on location, even within the state. But the core living expenses you’ll pay for typically include the following categories:

Housing (rent/mortgage)
Energy (utilities)
Food (groceries)
Transportation (vehicles or transit systems)
Healthcare (doctors, hospitals, etc.)

However, the costs often extend beyond these basics to cover other expenses, such as:

Clothing
Education
Childcare
Entertainment

These elements, when combined, establish the core costs associated with a particular way of living. However, your income and debts largely influence your living standard and how the dollar amounts compare to the costs of basic needs in the Hawaiian city where you live — or want to live.

Let’s take a quick look at some ways you can compare your current living cost with what you might experience if you move to Hawaii.

What’s a Hawaii cost of living index (CLI)?

A cost of living index (CLI) monitors how much these basic expenses change over time in different cities or regions. They provide a way to compare the price of maintaining a certain standard of living.

The CLI is calculated by assessing the price of essential goods and services such as housing, food, healthcare, and transportation in different areas.

An index is typically standardized, with a base city or region assigned a baseline index value (often set at 100). Other cities or regions are then compared against this benchmark. For example, a Hawaii or city with a CLI of 120 would signify that living there is 20% more expensive than the base location, while an index of 80 indicates it’s 20% less expensive.

A cost of living index will typically break down and score each basic expense by category. Here are separate scores for Hawaii from the worldpopulationreview.com Cost of Living Index:

Groceries: 125.60
Housing: 309.70
Utilities: 141.10
Transportation: 140.30
Health: 118.40
Miscellaneous: 123.80

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Hawaii’s overall annual cost of living data

Using additional data from Forbes, let’s take a closer look at actual dollar amounts and how Hawaii ranks compared to the other 50 states in the U.S.

Total annual cost of living: $55,491 — ranks #1 out of 50 states (Average yearly expenses for housing, food, healthcare, transportation, and taxes)
Total annual disposable income: $5,929 — ranks #50 out of 50 states (Total cost of living subtracted from average salary shown in table below.)

Hawaii cost of living data at a glance

Cost of living factor	Dollar amount	State ranking
Annual salary (average)	$61,420	#17
Transportation costs (annual)	$7,458	#1
Home price (median)	$837,324	#1
Mortgage payments (median monthly)	$5,004	#1
Rental costs (average monthly)	$2,423	#1
Housing costs (renters and homeowners)	$2,059	#2
Food costs (annual average)	$5,886	#2
Healthcare costs (annual average)	$9,592.67	#28
Income taxes (average annual)	$7,850	#1

Source: Forbes using data from the C2ER, U.S. Census and BLS reports, MIT Living Wage Calculator, Kaiser Family Foundation, and other public sources

Hawaii tax rates

State individual income tax rate: Hawaii has a graduated individual income tax, with rates ranging from 1.40 percent to 11.00 percent
State sales tax rate: Hawaii does not have a sales tax; instead, they have the GET, which is assessed on all business activities.
Effective property tax rate (percentage of home value): 0.29%
Median annual property taxes paid: $1,893
Average annual property tax bill: $2,386

*Some jurisdictions may collect local income taxes

Of 50 states, how does Hawaii rank for livability?

If you’re planning a move to the Big Island, you may be interested in more than just the cost of living data. Here’s a summary of livability insights for Hawaii:

Hawaii livability rankings

Crime and corrections: #10 (corrections outcomes, public safety)
Economy: #48 (business environment, jobs, growth)
Education: #24 (higher education, pre-K-12)
Fiscal stability: #46 (long- and short-term stability)
Healthcare: #1 (access, quality, public health)
Infrastructure: #37 (energy, Internet access, transportation)
Natural environment: #1 (air and water quality, pollution)
Opportunity: #45 (Affordability, economic opportunity, equality)

Source: U.S. News & World Report

»See more details about these categories on this U.S. News Hawaii rankings page.

Additional cost of living indexes

Here are some cost of living index links to research additional Hawaii living expenses:

Statista: Provides free access to many basic statistics. Paid subscriptions are available for more detailed information about Hawaii communities.
ACCRA (C2ER): Maintained by the Council for Community and Economic Research. This paid service maintains one of the largest databases of cost of living metrics for most Hawaii cities.
World Population Review CLI page: This website provides a free search-by-state tool at the bottom of its Cost of Living Index page.
Numbeo: This crowd-sourced CLI promotes itself as “the world’s largest database of user-contributed data about cities and countries worldwide.” This service can show you user-provided insights such as the cost of an inexpensive restaurant or the perceived presence of crime in different parts of Hawaii. It’s free for personal use.

Property insurance

As property insurance rates continue to skyrocket in states prone to environmental catastrophes like hurricanes, such as Hawaii, it’s important to get a good handle on what you might be looking for regarding homeowner insurance rates when considering moving to one of these locations.

According to survey data from HomeLight’s 2023 Top Agent Insights report, 25% of agents nationwide have said they saw an increase in home sale cancellations due to rising or unexpected insurance costs.

As insurers continue to leave ecological disaster-prone states in droves, homeowners have fewer options for a carrier, leading to higher insurance premiums, particularly for new homeowners. In mid-2023, one of Aloha State’s major insurance carriers, Universal Property and Casualty, announced it would discontinue writing homeowners’ insurance policies in the state.

As a result, for residents in districts like Puna, insurance premiums shot up over 400%, which is also attributed to increased risk from being in one of the island’s lava zones. Residents were left to utilize the Hawaii Property Insurance Association for coverage, a last-resort, state-run option that typically only underwrites insureds that can’t obtain coverage elsewhere.

According to Marketwatch.com, based on three different insurance providers, annual premiums in the state can range between $654 to $843. However, this largely depends on where you live, your property type, and several other factors.

Budgeting for your move to Hawaii

Below is a collection of handy online tools to help estimate your moving costs and living expenses in Hawaii — from how much you’ll need to pay a mover to how much your current home might sell for and the proceeds you can expect.

1. Online move cost estimators

With today’s smart technology, you can find a wide variety of tools to help you estimate the cost of paying for a mover or how to find a trusted mover for your relocation to Hawaii. Some examples include:

2. Cost of living calculators

Cost of living calculators are different from the cost of living indexes. These tools, typically free, provide a comparison based on income and regional costs for housing, transportation, food, healthcare, and other necessities in the two locations you select.

For example, if you live in San Francisco and want to move to Honolulu. Some popular cost-of-living calculators include:

3. Living wage and budget calculators

Living Wage Calculator: Designed by the Massachusetts Institute of Technology (MIT), this calculator can help you estimate the local wage rate that you’ll need as a full-time Hawaii worker to cover the costs of your family’s basic living expenses in a selected new location.
Family Budget Calculator: This tool, provided by the Economic Policy Institute (EPI), estimates the income your family will need to attain a modest — yet adequate — standard of living in your selected new community. Choose from 10 family types in all counties and metro areas in Hawaii.

4. Homebuyer calculators

Home Affordability Calculator: Understand the costs associated with buying a home and determine how much home you can afford before looking at homes for sale or planning a move.
Down Payment Calculator: Estimate how much you might need to put down on a home and learn more about the loan options that work best for you.
Closing Costs Calculator: Find out how much cash you’ll need for closing costs on a house, including estimated lender and third-party fees.

5. Home seller calculators

Home Value Estimator: Get a preliminary estimate of your current home is worth, along with options to help you get the best price when you’re ready to sell.
Best Time to Sell Calculator: This calculator incorporates nationwide real estate transaction data to help time your move.
Agent Commissions Calculator: Learn how much you might pay in real estate agent commissions when selling a house in your current market.
Net Proceeds Calculator: Get a ballpark idea of the net proceeds you could earn from the sale of your existing home.

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Selling your current home and buying in Hawaii

To make your move smoother and less stressful, modern real estate solutions like HomeLight have created innovative programs to help you buy a house before selling your old one.

Watch the short video below to learn about HomeLight’s Buy Before You Sell program that lets you move into your new Hawaii home now and sell your current house with peace of mind and on your timeline.

Partner with a professional to find your new Hawaii home

As you plan your move, HomeLight can connect you with a top-performing, trusted real estate agent in your current city or the Hawaii community where you’d like to live. We analyze over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs.

For the best of both worlds — coming and going — ask your agent about HomeLight’s Buy Before You Sell program to help take the uncertainty out of your Hawaii home purchase.

Header Image Source: (Michelle_Raponi / Pixabay)

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