Thinking about moving to Hawaii? It’s beautiful, surrounded by the vast ocean, with pristine nature and rich culture, but paradise comes at a price – in fact, the price is so high that it can put many people off. Here’s everything you need to know about the cost of living in Hawaii, plus first-hand stories and opinions from locals and families.

I GET

Some studies show that to live comfortably in Hawaii, you’ll need a whopping salary of over $122,000. (Of course, everyone’s standard of living is different, and it all depends on your “comfort” level.) The Massachusetts Institute of Technology (MIT) Living Wage Calculator says a single adult in Honolulu needs to earn $16.59 per hour. for a living wage. If they are a couple with 2 children, each adult should earn $17.70 per hour.

According to Payscale , the average salary in the island’s capital, Honolulu, is $66,000, but the state has one of the highest income tax rates in the country, with the top rate being 11 percent. According to  the Bureau of Labor Statistics , the average salary in the United States as of the 3rd quarter of 2020 is $51,688 ($994 per week). According to another analysis conducted by  Indeed.com in January 2021, average salaries in Hawaii range from approximately $33,965 per year for a customer service representative to $96,620 per year for a travel nurse.

But for many, Honolulu’s attractive qualities balance out potentially lower wages and a high cost of living.

EXPENSES

Rent in Hawaii is much more expensive than most places on the mainland, and it all depends on the location. For example, a studio on Oahu can cost anywhere from $1,000 to over $1,600 per month, not including utilities, which can be around $150 per month per person. A one-bedroom apartment or home can range from $1,500 to over $2,000 per month, while a two-bedroom apartment or home starts at $1,800 per month. Looking for a luxury, new one bedroom apartment? Expect to fork out at least $3,000 per month.

You can always choose to stay outside of downtown Honolulu or even consider other Hawaiian islands—Hilo on the Big Island is nearly 49 to 56 percent cheaper than Honolulu, plus offers a laid-back and relaxing small-town atmosphere that may be more appealing than the hustle and bustle noise. bustle of the city.

If you’re looking to buy, the median sales price for a single-family home is $870,000—a new record as of December 2020. The average condo sale price on Oahu is $455,000. However, despite high prices, Oahu continues to see an increase in home and condo sales.

Alternatively, buying a piece of land and building your own home may be more affordable, but it depends on the location and your general contractor.  You can find the average costs associated with building a custom home in Hawaii in this blog post. 

When it comes to utilities, Hawaii residents pay the most when it comes to monthly energy bills in the country. According to the U.S. Energy Information Administration , you can expect to receive an average energy bill of $168.13 per month. This is $50.48 more expensive than the national average of $117.65.

Despite the high cost of energy, Hawaii has 8% more sunshine than other states, creating an opportunity for cost-effective solar power. In fact, Hawaii was the first state to set a deadline for generating 100% renewable electricity by 2045.

Transport

Let’s say you decide to live outside of busy Honolulu or downtown – then you’ll need to consider the cost of owning and driving a car. Gas prices as of January 2021 are about $3.16 per gallon in Honolulu. Taking the bus or, on Oahu, TheBus may be a more affordable way to get around at $2.75 per ticket, although it may not be the most attractive daily choice.

If you work in downtown Honolulu or Waikiki, you’ll likely have to rent a parking space if your company doesn’t provide one. Parking typically costs between $100 and $200. Those living in a condominium may also need to rent a kiosk for about the same price, although this depends on the association’s rules.

If you live in Kapolei or the Ewa side of Oahu, you can use the Honolulu Rail Transit to get to work. However, there were many delays in its construction.

Groceries and restaurants

and locally produced coffee. But Hawaii is the most expensive place to buy groceries in the country, especially because groceries are shipped from the mainland. According to  a Q3 2020 report from the Missouri Center for Economic Research and Information , groceries are incredibly expensive in Hawaii. The study used a national index of 100 and Hawaii ranked 196.3, while California ranked 138.5, Washington 111.3 and Oregon 134.6.

For example, a gallon of whole milk on Oahu can cost $8.99—the cheapest at Costco is about $5.50 a gallon. Broccoli is $3.79 per pound, large carrots are $3.49 per pound. And yes, while buying local mangoes is encouraged, Hawaii-grown mangoes cost about $6.99 per pound. Four rolls of toilet paper cost about $6.

Eating out will add up quickly. The average cost of breakfast in Hawaii is $8 to $12, lunch is $8 to $15, and dinner is $15 to $30 (or more). However, there is a huge price range, so many people buy a dinner plate (white rice, pasta salad, and a meat dish like loco moco or teriyaki beef) and save it for lunch and dinner, or split the entire plate in half with a friend. 

Miscellaneous

Are you ready for some good news ? The average property tax rate in Hawaii is 0.35 percent, one of the lowest rates in the country. Income tax rates range from 1.4 to 11 percent.

For retirees, Hawaii can be quite attractive because the state exempts Social Security retirement benefits and state pension income from state taxes. It fully taxes income from private pensions and retirement savings accounts.

Hawaii residents who participate in employer-sponsored health insurance plans pay some of the lowest costs in the country, according to a Commonwealth Fund study . Generally, insurance in Hawaii is provided through two main companies: Kaiser Foundation Health Plan Inc. or Hawaii Medical Service Association (HMSA). According to this study, the potential cost to workers in Hawaii is about 36 percent of the national average of $4,664 (8 percent of average income), compared to the national cost of $7,240 (12 percent of average income). Hawaii had the lowest per-employee costs in the country in 2017 at $675, less than half the national average of $1,415. 

More good news: Hawaii is also the healthiest state in the country and has been named healthiest nine times since 1990. Low rates of obesity and smoking may contribute to low levels of air pollution, less mental stress, and more available primary care physicians. .

Example budget for a family of 4 living in a single-family home:

• Mortgage – $2,900 per month
• Products – from 800 to 1000 dollars per month. 
• Electricity – $190 per month 
• Transport – $380 per month 
• Eating out – $500 per month. 
• Property taxes are $2,350 per year.

The above figures are based on the following conditions:

• You have 1 wall AC unit that you use sparingly.
• You have 2 petrol cars.
• Shop at Costco, Foodland and/or Safeway.
• You dine out once or twice a week at a reasonably priced restaurant. 
• You live relatively close to your place of work.

Ways to save

• Shop at Costco. If you or your family is in the military, shop at NEX.
• Costco offers the cheapest gas in Hawaii.
• Electric vehicles (EVs) have become popular in Hawaii. Benefits include free on-street parking and HOV Lane use for electric vehicle owners.
• Solar Panels – Hawaiian Electric Company offers several programs for customers to achieve significant energy savings.

So why the high cost?

The high cost of living in Hawaii has many reasons, but the short answer is that we are surrounded by water. Almost everything we consume must be shipped here or flown in. Hawaii is also a desirable place for the wealthy to purchase real estate, which continues to increase home values. Another important factor: utility bills like electricity are sky-high thanks to the warm climate. As with many things in life, there is certainly a trade-off.

Is it worth it? Here’s what the locals say…

“Home prices on the mainland are tempting, especially when we see prices here in Hawaii increasing every year. But for me, Hawaii is home. It’s like a family. I make it work by living in an apartment instead of a house. I buy in bulk at Costco over other grocery stores because Costco has some of the lowest prices on groceries here. I also keep an eye on the sales… that’s the way things are,” says LM.

“I’ve been thinking about moving to the mainland where the cost of living is much lower, but it’s hard to imagine moving and having to start over. My roots are in Hawaii and my family is here. I do this while living with my parents, which saves a lot of money that I would normally spend on rent,” says CO.

“The cost of living in Honolulu is high. My wife and I have talked about moving to the mainland, but every time we discuss it, we both just can’t imagine moving. Even though making ends meet can be difficult, we make it work. We buy in bulk and my wife watches our two children at home, saving on daycare costs. She also works from home and every bit of income helps her. We look for sales at stores like Costco and Target and buy used toys on Facebook Marketplace or E-bay. We don’t eat out much, cook every day and stick to a pretty strict budget every month,” says KK.

“I moved to Los Angeles about six years ago to find a new job, and it wasn’t too different from Hawaii in terms of cost of living. This year I’m in Minnesota. There’s no tax on clothing or food, and a four-bedroom home sells for $200,000. It’s like the old saying – it’s just the price of living in paradise. I was simply offered a high-paying summer job, but even though it was a good salary, I would have to move back to an apartment and significantly reduce my standard of living,” says JG.

“I moved to San Francisco about five years ago. I’ve met a lot of people here from Hawaii and we all have similar stories. We came for work, school or opportunity. In addition to housing that rivals Hawaii, living expenses are cheaper. The jobs pay better and there are more of them. And although we no longer live in paradise, I can now afford to visit it whenever I want. I really miss Hawaii, but there’s no point in going back now,” says J.D.

conclusions

Although the above calculations provide a rough estimate of life in these locations and do not include health insurance costs and expenses, we can draw a few conclusions:

• Hawaii has one of the lowest property tax rates in the country.
• The cost of food in Hawaii is high compared to other places.
• Some places, such as California and New York, have higher transportation costs. Parking fees in New York City are prohibitive if you have a car, but you can overcome this by taking advantage of the excellent public transportation system.
• In Honolulu, you don’t have to pay extra for trash or recycling services, unlike most places.
• Some places, such as Seattle, Manhattan, San Francisco and San Diego, are more expensive to live than Honolulu; however, all of these places also have higher average incomes.

While the cost of living in Hawaii may seem daunting at first, it requires some introspection and careful consideration of your lifestyle. If you’re used to a certain standard of living, you may have to make some sacrifices when moving to Hawaii . But it may not seem like a sacrifice to give up a luxury car or eat out less, especially if living near the ocean and enjoying a warm climate and healthy island environment is important to you. It’s all about balancing your values ​​and figuring out what works for you and your family.