Hawai'i's condominium market is diverging sharply from the rest of the state's housing picture, and the gap has less to do with demand than with the growing cost of simply holding a unit. The University of Hawai'i Economic Research Organization (UHERO) released its 2026 Housing Factbook, documenting conditions that could matter well beyond the islands as a case study in climate-adjusted housing costs.
Statewide condo prices fell 2% in 2025 while single-family prices rose 1%. On Maui, condo prices dropped 11% compared to 2023 levels, with units on the Minatoya List, an apartment-zoned category that had been used heavily as vacation rentals, down 16%. Days on market have climbed steeply. In Maui County, condominiums now spend more than 100 days on the market on average. In Honolulu, the condo median days on market rose 17% in the first quarter of 2026 alone.
HOA Fees Are Now a Material Variable in Condo Affordability Calculations
For the first time, the U.S. Census Bureau collected data on Home Owner Association (HOA) fees in 2024, and the results confirm what Hawai'i buyers have long known. Forty-two percent of homeowners in the state pay HOA fees, compared to 25% nationally. Hawai'i ranked second in the nation for median monthly HOA fees at $470. Honolulu's median was $526. An analysis of active O'ahu listings in February 2026 found a median advertised HOA fee of $882 per month, with older buildings that have deferred maintenance running even higher due to special assessments.
The affordability picture that emerges is more complicated than sale price alone captures. A condominium that looks marginally affordable on a mortgage payment basis can carry total monthly ownership costs that put it out of reach once insurance, taxes, and HOA fees are added in.
Hawai'i Property Insurance Premiums Rose 13.4% in 2024, With Condo Developments Facing Far Higher Increases
Insurance cost growth is the most acute pressure point in the UHERO data. Aggregate property insurance premiums collected statewide grew 13.4% in 2024, the largest annual increase in at least a decade, against a national increase of 9.7%. For some condo developments specifically, UHERO cites reports of policy rate increases exceeding 1,000%. The aggregate figure likely understates the true rate increase for active policyholders because some owners are dropping coverage as costs become unaffordable, which pulls the aggregate down while rates continue rising for those who remain insured.
Kona Low storms in March and April 2026 caused more than $1 billion in estimated damage across the state, including flooding and landslides that displaced residents temporarily. UHERO notes that recent disasters are expected to put further upward pressure on insurance pricing as carriers recalibrate for climate risk. Adding to the near-term cost picture, FEMA will update its flood maps in June 2026 to include 3,700 net new parcels, a 25% increase, on O'ahu in Special Flood Hazard zones. Properties in newly designated zones will face mandatory flood insurance requirements to qualify for federally backed mortgages, with risk-based pricing that FEMA estimates could rise to $3,258 annually per typical home from a current average of $1,023.
