#Honolulu | #Honolulu, #Kauai, #Maui, #Molokai, #Niʻihau | #Niihau, #Oahu | #Oaxy, #Real Estate Rentals, #Security, #Businesses, #Hawaii, #Hawaii | #IslandofHawaii, #Laws, #Investor, #Taxes, #Real Estate, #News, #Advice, www.Hawaii.Bio, Businesses in Hawaii recommendations, Future of real estate in Hawaii, Land in Hawaii, How to build a house, Property Tax , How much does it cost to build a house?, Cost of living in Hawaii, What you need to know about Hawaii

The endless blue ocean, towering green mountains, endless colorful rainbows, the aloha spirit: living in Hawaii is truly paradise. While beautiful scenery, outdoor activities, and an attractive culture may entice you to buy real estate in Hawaii, not everything in paradise is perfect. 

Homeowners in Hawaii often face a number of disadvantages when purchasing real estate in Hawaii.   

Before you buy a home in Hawaii, here are some of the top pitfalls of home ownership, according to our homeowner surveys.

Homes are smaller than those on the US mainland and tend to be much more expensive per square foot.

Can you imagine living in a 2,000 square foot single family home with large rooms and closets on an average sized lot of say 7,500 square feet? Although this is a typical home in many suburban areas of the mainland US, in Hawaii such a home would be expensive.   

The median price of a single-family home on Oahu reached $950,000 in March 2021, and the median sales price was $1,226,827, according to the Honolulu Board of Real Estate. Prices per square foot are over $600 for single-family homes in most areas of Oahu, including Mililani, Kapolei, Ewa Beach, Kaneohe and Kailua. In areas like Kailua and Hawaii Kai, prices can be even higher.  

Also, keep in mind that even in Hawaii there aren’t many huge homes for sale. Land in Hawaii is limited, so there aren’t many options for building or purchasing larger homes. Most single-family homes have two to four bedrooms, with modest room and lot sizes. However, Hawaii also has many beautiful mansions that are reasonably priced (over $1 million).

The real estate market is tough and there are few options. 

The Hawaii real estate market is hot! From January to March 2021, 50% of single-family homes sold were over asking price. For condominiums, 29% are selling above list price. In March 2021, single-family homes spent an average of just nine days on the market.   

The demand for housing in Hawaii is enormous. Shannon Haven, president of the Honolulu Real Estate Council, said, “Despite new listings, demand continues to outpace our limited housing inventory. The lack of inventory creates a very active and competitive market for potential Oahu home buyers.”  

If you are even thinking about purchasing real estate in Hawaii, keep in mind that you will likely need to make a competitive offer, and delays in making a decision may cause you to miss out on the opportunity to purchase real estate in Hawaii. If you see your home in Hawaii, talk to your real estate agent so they can get you the best deal right away. Then cross your fingers, as the seller will likely have several offers to choose from.

The cost of living in Hawaii is high compared to most other places in the US. 

Once you move into your Hawaii home, you can live in paradise—for a price. According to Expatistan for 2021, Honolulu is the 7th most expensive city in the United States and the 8th most expensive city in North America. Honolulu is also the 21st most expensive city in the world! Some studies show that you’ll need a whopping salary of over $122,000 to live comfortably in Hawaii.  

Generally, everything is more expensive in Hawaii than on the US mainland. Gasoline costs over $3 a gallon. A gallon of milk costs about $9 at Safeway, one of the main grocery stores on Oahu. A loaf of sandwich bread will cost you about $5 on Oahu, and avocados, which are found in abundance on some trees in Hawaii, will cost you about $2 per avocado at Costco.  

The cost of living in Hawaii in 2021 often comes as a shock to newcomers to the Hawaiian Islands. Learn more about the cost of living in Hawaii, including ways to cut costs and how the cost of living compares in Honolulu and other places like California and New York.

Construction is often expensive, and homeowners in Hawaii should expect construction delays. 

Labor and building materials shipped across the ocean also cost more in Hawaii. Looking to update your kitchen? Expect to pay much more than on the US mainland. How much does it cost to build a house in Hawaii? Learn more from our Oahu construction experts here.   

Once you’ve saved up to renovate, renovate, or even build your dream home, understand that construction delays are common in Hawaii. The number of contractors and builders is limited, and when you find the contractor you want in Hawaii, know that unexpected delays may occur. Delays may be caused by uncontrollable shipping difficulties as building materials are often shipped in shipping containers to the Hawaiian Islands; only a certain number of shipping containers are delivered to Hawaii on large barges each day, and when they reach the docks, only a certain number of containers are unloaded each day.  

Other construction delays include Hawaii’s lengthy building permitting process. The City and County of Honolulu’s Department of Planning and Permitting (DPP) is notorious for taking some time to approve building permits. Other delays may be due to inclement weather such as heavy rain or hurricanes. Another delay could be due to unavailability of workers or even due to workers being stuck in terrible traffic. In short, construction in Hawaii is not always efficient or cost-effective, so it can become a nasty pitfall for Hawaii homeowners.

Utilities are expensive and not always reliable. 

How much does electricity cost in Hawaii? Electricity costs on Oahu range from $0.49 per kilowatt-hour (kWh) to $0.62 per kWh, depending on the time of day. This rate has been increasing regularly and is higher than many places on the US mainland. The benefit of homeownership in Hawaii is that solar energy can be an option for many homeowners, offering much lower energy bills.   

Additionally, Hawaii’s electricity is operated by only a few companies. Hawaiian Electric Company (HECO) is the electricity provider on the island of Oahu. Since there is only one company, homeowners have only one company to rely on during emergencies. Power lines on Oahu are above ground in many areas, and the rich soils cause foliage to grow quickly, making it easy for wind and tall trees to knock down power lines. When will the power come back on? This depends on how quickly HECO can respond. Due to weather conditions and electrical infrastructure in some areas, Hawaii homeowners should expect to live without power for several hours each year.  

While the Hawaiian Islands have Internet access in most places (except very rural areas on the Big Island, Maui, or Kauai), Hawaii has a limited number of Internet providers. On Oahu, most homeowners will choose Hawaiian Telcom or Spectrum, but which is better? Both offer fiber optic options, but both are known to stop working from time to time—another pitfall of buying real estate in Hawaii.

Salt water damage or mold from moisture creates the need for seemingly constant maintenance. 

While Hawaii’s blue seas are beautiful, the salty and humid air can cause some damage to property.   

Any metal will rust quickly, like the galvanized nails holding your siding together or the beautiful metal door leading into your home. Stainless steel materials are recommended for a more durable design, but they will also rust over time.  

Humid air can cause wood to swell or rot. While painting or staining the wood can help keep the wood looking longer, it always seems that no matter how hard Hawaii property owners try, air leaks into the wood. This can cause difficulty opening wooden gates or even damage walls and exterior awnings.  

Some contractors specialize in building homes that can withstand Hawaiian air. However, most homes in Hawaii were not originally built with these measures in mind. Learn more about Lex Allen’s recommendations for building Hawaii homes that can withstand Hawaii’s humid and salty air; Lex is the owner of Solid Build Construction, Inc. , based in Kapolei.

Weeds can easily take over garden beds, and creepy bugs can invade homes. 

Hawaii has rich soil that makes it easy to grow a variety of foods, from herbs like basil and mint to fruit trees like avocado and papaya, from vegetables like lettuce and cucumbers to Hawaiian staples like taro. However, this rich soil also allows weeds and invasive species to grow easily.  

Here are some of the major weeds and invasive species  that can easily take over Hawaiian gardens within months if the right precautions (such as mulching and constant maintenance) are not taken:

• Knapweep 
• Wild garlic 
• West Indian foxtail 
• Barbed wire grass 
• Canada thistle 
• pepper 
• Lyon grass Witch 
• Much more

In addition to weeds that can easily take over manicured lawns or well-educated flower beds, there are also several insects in Hawaii that can wreak havoc on property. Termites are a top predator for Hawaii homeowners. 

Terrestrial termites have been known to eat away at support beams and walls and cause entire homes to collapse. The good news is that Hawaii homes are inspected for termites at escrow, and almost all wood used for construction is termite treated.   

Some other scary insects that homeowners in Hawaii will have to deal with include centipedes, flying cockroaches, ants, flies and cane spiders. Not to mention, Hawaii also has mice and rats that are known to visit homeowners. Regular termite fumigation and insect and pest control are preventive measures recommended for homeowners in Hawaii.

Natural disasters such as floods, hurricanes, or even volcanic eruptions pose a real threat to life in Hawaii. 

Are there active volcanoes in Hawaii? Yes, on the Big Island. In 2018, the Kīlauea eruption destroyed more than 700 homes. Mount Kilauea is one of the most active volcanoes in the world, and residents of the Big Island experience its effects firsthand. Kauai, Oahu and Maui have no active volcanoes; however, sometimes volcanic air, or vog, reaches all of the islands, depending on the air flow and activity of Kilauea.  

Are there floods in Hawaii? Yes, properties flood almost every year on all of the Hawaiian Islands, including Oahu. 

In 2021, about 100 properties in Haleiwa and Hau’ula on Oahu’s North Shore suffered major damage due to river flooding due to excessive rainfall. 

Ocean tides and large waves will also cause flooding of Hawaiian homes on all islands. 

When purchasing property in Hawaii, it is important to ask about the previous flood history and flood zone designation for the property. 

Related news:

May 2022 Why did the Hawaii Legislature amend the Real Estate Seller Disclosure Act?

The agent representing you in the transaction should be able to help you complete this section (if you are a seller) or direct you to resources for interpreting the disclosure (if you are a buyer).

You may be interested in this topic: #Real Estate in Hawaii