The emerald-blue oceans and island lifestyle beckon millions of people to Hawaii's soft, inviting sandy beaches.
Each island has its own unique culture and traditions and is full of beautiful beaches, mountains, and so much more. There's only one word to truly grasp the beauty of Hawaii — paradise. However, with the significant rise in the median sales price in condos and single-family homes, the outlook of Hawaii's property market may seem stark to many real estate investors.
Fortunately, there are still certain regions of each island that house worthwhile investment properties. In this article, you'll discover five of the best areas for investment properties, in no particular order.
1. Wailuku
Wailuku should be at the top of the list for all real estate investors wanting to get in on the Hawaiian property market.
The adage location, location, and location certainly apply to Wailuku. It's strategically positioned just ten minutes from the Kahului Airport and features numerous local businesses handed down from one generation to the next.
Wailuku also has a massive art community and some of the most affordable rent on all the islands. Similar to other regions, Wailuku has seen a massive rise in home value in the past year and a steady population growth.
It's also the area that receives an average of 30 leads per property, making it easy to find the right tenants for your new Hawaii home.
2. Waikiki
When most people think of Hawaii, they likely conjure an image of Waikiki. This small region of Hawaii is full of life and a favorite for tourists and locals alike.
Although Hawaii hasn't seen a 20 percent rise like the US average, Waikiki home values have gone up over 11 percent in the last year alone.
Being a tourist hotspot and the rapid rise in home value make Waikiki the perfect location for an investment property. Additionally, the year-over-year growth in median household income makes Waikiki an excellent option for real estate investments and investors looking for long-term rentals.
In fact, the median household income in Waikiki has grown close to 4 percent within the last year.
3. Hilo
Hilo is one of the cheapest areas of all the islands to purchase an investment property. This makes it ideal for those who make to stretch their budget. Hilo is also the go-to spot for remote workers wanting to experience paradise without blowing their entire check on rent.
4. Kihei
Another beautiful Maui region, Kihei, features a six-mile-long beach perfect for water activities and a bustling farmer's market for when your tenants get hungry.
The area has a steady population growth and is one of the most desired regions to live on Maui. Real estate investors can expect their rental properties to be snatched up within two weeks of being on the market.
5. Metro Honolulu
One of the best places to purchase an investment property is arguably metro Honolulu. The area has a modest growth but has the strongest job market of all the islands. It may be expensive here, but the location offers some of the best rental yields for investors.
Buying Investment Properties in Hawaii
Although Hawaii is growing much slower than the mainland, certain regions have qualities that make for potential attractive investment properties.
Contact our team to help you navigate the Hawaiian property market and find your next investment!