Hawaii is known for its luxurious real estate, but how to afford a home in hawaii? To answer that question, we first need to take a look at how Hawaii’s cost of living compared to other states. Surprisingly, it is still possible to purchase a home in Hawaii on a middle-class income – but you may have to compromise on location or size. Keep reading for more information!
How to Afford a Home in Hawaii vs Other States
How does Hawaii compare with other states when it comes to property prices? According to the 2018 American Community Survey, the median home value in Hawaii is $649,000. This is significantly higher than the national median home value of $228,000.
However, it’s important to remember that Hawaii is a unique state with a high cost of living. When we compare Hawaii’s median home value to other states with a similar cost of living, we see that it is actually on par with California ($651,000) and Massachusetts ($626,000).
When we look at the median household income in Hawaii, we see that it is $84,512. This is slightly higher than the national median household income of $80,778. Therefore, it’s important to draw relative comparisons with other states and not just assume that Hawaii is out of the budget of most Americans.
If you’re accustomed to a high cost of living, then you may find that purchasing a home in Hawaii is within your budget. It’s important to consult with a real estate agent to get an accurate estimate of what you can afford. They will be able to help you find properties that fit your budget and needs. Fortunately, reliable services like Weaver Hawaii exist to make your life much easier.
Purchasing a Hawaiian Property on a Middle-Class Income
Before assessing your options, what exactly is a middle-class income in the United States? The Pew Research Center defines it as an annual household income that falls between two-thirds and twice the national median. Shortly before the pandemic, the median income for a U.S. household was $61,372. Therefore, a middle-class income would fall somewhere between $40,915 and $122,745 per year.
Of course, this is quite a big window, and it doesn’t take into account the cost of living in different states, which can vary widely. So, how to afford a home in Hawaii?
The median home value in Hawaii is $605,000, according to Zillow. The median rent price is $2,850. Oahu has the most affordable housing, with a median home value of $550,000 and a median rent price of $2,650. Maui is the least affordable, with a median home value of $650,000 and a median rent price of $2,900.
For comparison, let’s look at some other states. In California, the median value of properties is $529,000 and the median rent price is $2,700. In Florida, the median home value is $209,000 and the median rent price is $1,400. So, while Hawaii is more expensive than some other states, how to afford a home in Hawaii? It’s not out of line with others in terms of cost. So how to afford a home in Hawaii
Can you afford real estate in Hawaii using a middle-class income? Yes. Depending on where you are right now, you may need to change your lifestyle to accommodate the move. However, there’s no reason why you can’t explore your options in 2022.
To finish, here are some top tips for how to afford a home in Hawaii:
- Do your research
- Consider your lifestyle and check how to afford a home in Hawaii
- Consider your children and their education
- Compare potential salaries in Hawaii to your existing salary
- Speak to a professional real estate agent