Whatʼs The Cost of Living in Hawaii

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The Cost of Living in Hawaii: A Comprehensive Overview

Living in Hawaii is a dream for many, with its stunning landscapes, tropical climate, and unique culture. However, the allure of the islands comes with a significant cost. Understanding the financial implications of residing in Hawaii is crucial for anyone considering making a move to this paradise. Let’s delve into the various aspects that contribute to the cost of living in Hawaii, backed by data, expert opinions, and insights.



Housing: The Biggest Expense

When discussing the cost of living in Hawaii, housing is often the first and most significant factor. According to the U.S. Census Bureau, the median home price in Hawaii is substantially higher than the national average. In 2023, the median home value in Honolulu was around $850,000, while the national median hovered around $350,000. This stark difference is primarily due to limited land availability and high demand.

Renting is not a much cheaper alternative. The average rent for a one-bedroom apartment in Honolulu is approximately $1,800 per month, compared to the national average of about $1,200. Experts like Lawrence Yun, Chief Economist at the National Association of Realtors, attribute this to the island’s unique geography and the influx of newcomers seeking to experience island life.

Utilities and Energy Costs

Utilities in Hawaii are another significant expense. The state’s reliance on imported oil for electricity generation leads to higher energy costs. As per the U.S. Energy Information Administration, Hawaii has the highest electricity rates in the United States, with residents paying about 30 cents per kilowatt-hour, compared to the national average of 13 cents.

Water and gas costs also exceed the national average. Conservation efforts and the adoption of renewable energy sources are underway, but changes are gradual. Residents often invest in energy-efficient appliances and solar panels to mitigate these high costs.



Groceries and Food

Due to its geographic isolation, Hawaii imports approximately 85-90% of its food, leading to inflated grocery prices. A trip to the grocery store in Hawaii can be a shock for newcomers, with staples like milk and bread costing twice as much as on the mainland. The Hawaii Department of Agriculture is working to promote local farming to reduce dependency on imports, but the impact is yet to be significantly felt.

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Dining out is also more expensive than in other states, with an average meal costing around $15-20 per person in casual establishments. However, the rich culinary scene, influenced by diverse cultures, offers a unique dining experience that many find worth the extra cost.

Transportation Costs

While Hawaii’s public transportation system, particularly TheBus in Honolulu, offers an affordable option for getting around, many residents rely on personal vehicles. Gasoline prices in Hawaii are consistently among the highest in the country, often exceeding the national average by 30-50 cents per gallon.



Vehicle shipping costs for those moving to the islands can also add up, with fees ranging from $1,000 to $2,500 depending on the origin. Insurance rates are generally higher as well, given the risk of natural disasters like hurricanes and tsunamis.

Healthcare and Education

Healthcare in Hawaii is relatively affordable, thanks to the state’s Prepaid Health Care Act, which requires employers to provide health insurance to employees working more than 20 hours per week. However, the cost of specialized care can still be high due to limited availability of certain medical professionals on the islands.

Education costs vary, with public schools generally offering a solid education. However, private school tuition can be steep, averaging around $12,000 per year. The University of Hawaii system provides affordable higher education options for residents, but out-of-state tuition is considerably higher.

Taxes and Miscellaneous Costs

Hawaii’s tax structure includes a general excise tax (GET) instead of a sales tax, which applies to most transactions. The GET rate is 4%, but effectively around 4.5% due to county surcharges. Property taxes, however, are relatively low compared to other states, providing some relief to homeowners.

Other miscellaneous expenses like clothing, entertainment, and personal care are also higher, influenced by shipping costs and the general cost of living. Despite these challenges, Hawaii consistently ranks high in quality of life metrics, with residents often emphasizing the “aloha spirit” and natural beauty as priceless benefits.

Final Thoughts: Is It Worth It?

Living in Hawaii comes with a premium price tag, but for many, the lifestyle and environment are worth the cost. Prospective residents should carefully assess their financial readiness and consider the potential for higher expenses in nearly every aspect of daily life. Exploring ways to reduce costs, such as embracing local produce, energy-efficient living, and utilizing public transportation, can help offset some of the financial burdens.

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Ultimately, the decision to move to Hawaii should be guided by a thorough understanding of the cost of living, aligned with personal priorities and financial capabilities. With careful planning and adaptation, living in this island paradise can be an achievable dream.

Dave Pennells

By Dave Pennells

Dave Pennells, MS, has contributed his expertise as a career consultant and training specialist across various fields for over 15 years. At City University of Seattle, he offers personal career counseling and conducts workshops focused on practical job search techniques, resume creation, and interview skills. With a Master of Science in Counseling, Pennells specializes in career consulting, conducting career assessments, guiding career transitions, and providing outplacement services. Her professional experience spans multiple sectors, including banking, retail, airlines, non-profit organizations, and the aerospace industry. Additionally, since 2001, he has been actively involved with the Career Development Association of Australia.