How to Buy a House in Hawaii
Updated 2026-03-02 | Data from Zillow, HUD, Tax Foundation
Avg Home Price
$973,555
Closing Costs
$18,360
1.89% of price
Property Tax Rate
0.32%
$1,971/yr median
Days on Market
55
Median
FHA Loan Limit
$1,149,825
Attorney Required
No
Foreclosure Type
Judicial
Transfer Tax
0.2%
$0.20 per $100 (up to $600K)
Hawaii has the most expensive housing market by median price outside of a handful of California coastal counties, driven by extreme land scarcity, geographic isolation, and enormous demand from both local residents and mainland investors. The state's unique leasehold property system — where you may own the building but not the land beneath it — adds complexity that is rarely encountered elsewhere in the US. Fee simple (owning both land and structure) is strongly preferred and commands a significant premium over leasehold properties. Hawaii operates under a system where closings go through escrow companies rather than attorneys or title companies, and the state's real estate conveyance tax uses a progressive rate structure based on the property's value.
By BuyAHomeIn Editorial | Updated 2026-03-02 | Sources: Zillow, HUD, Tax Foundation
Key Facts About Buying in Hawaii
- ✓Second highest home prices in the US
- ✓Lowest property tax rate in the nation at 0.28%
- ✓Both judicial and non-judicial foreclosure allowed
- ✓FHA loan limits up to $1,149,825
The Home Buying Process in Hawaii
Buying a home in Hawaii follows a 10-step process. Hawaii does not require an attorney at closing, though you may choose to hire one.
Check Your Credit Score & Finances
Get Pre-Approved for a Mortgage
Find a Real Estate Agent
Search for Homes & Make an Offer
Get a Home Inspection
Secure Your Financing
First-Time Buyer Programs in Hawaii
HHFDC Hula Mae First-Time Homebuyer
Below-market rate mortgage for first-time buyers
Cost of Buying a Home in Hawaii
| Down Payment (3.5% FHA) | $34,074 |
| Down Payment (20% Conventional) | $194,711 |
| Average Closing Costs | $18,360 |
| Transfer Tax | $1,947 |
| Annual Property Tax (est.) | $3,115/yr |
Legal & Regulatory Details in Hawaii
Homestead Exemption
Available
Up to $30,000 (head of household)
Licensing Authority
Hawaii Real Estate Commission
Hawaii Real Estate Law Overview
| Conveyance Document | Warranty, limited-warranty and quitclaim deeds; condominiums use an apartment deed |
| Security Instrument | Mortgage |
| Foreclosure Process | Judicial |
| Attorney Required at Closing | No |
| Deficiency Judgment | Yes |
| Redemption After Sale | No |
| Reinstatement Available | No |
| Seller Disclosures | A written disclosure statement covering material facts must be delivered within ten days of contract acceptance; buyers may rescind within fifteen days. Issues include plumbing, heating, appliances, ceilings and foundations. |