Research into Hawaii Real Estate Appreciation

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shortsegments9.6 K4 months ago4 min read

Identifying the "highest performing" real estate neighborhoods in Hawaii depends on the specific metrics you prioritize, such as property appreciation, rental income, or luxury market growth.

Based on recent data and trends, here are some of the top-performing areas across different segments:

For Strong Overall Performance and Appreciation:

Keaau (Big Island, Zip Code 96749): This area shows the highest InvestScore in Hawaii, with significant five-year property value appreciation (56.68%) and relatively affordable property values.

Waikoloa (Big Island, Zip Code 96738): Ranked second for investment potential, Waikoloa boasts the highest five-year property value appreciation in the state (78.44%) and strong population growth.

Ewa Beach (Oahu, Zip Code 96706): This area on Oahu is a rising star with high Airbnb occupancy rates and a considerable five-year property value appreciation (33.58%).

Hilo (Big Island, Zip Code 96720): Hilo offers a more affordable entry point with significant five-year appreciation (48.30%) and diverse attractions boosting its appeal.

Wailuku (Maui, Zip Code 96793): This area on Maui has seen substantial property value appreciation (59.97%) over the past five years.

For Luxury Real Estate:

Oahu:

Kahala: A long-established prestigious neighborhood known for its multi-million dollar estates and beachfront properties.
Diamond Head: Offers luxury homes on the slopes of the iconic crater, with beachfront and hillside estates.
Lanikai/Kailua: A highly sought-after beachfront neighborhood with a serene atmosphere and luxury homes, attracting celebrities.
Portlock: An exclusive oceanfront community in Hawaii Kai with some of the most desirable luxury real estate in Honolulu.
Hawaii Loa Ridge & Waialae Iki: Gated communities with custom-built luxury homes and panoramic views.

Maui:

Wailea/Makena: Known for stunning beaches, luxurious estates, and high-end resorts, attracting affluent buyers.
Kapalua: Before the recent fires, this area was known for its luxury homes and resort lifestyle. The current market may be uncertain.

Big Island:

Kukio: An exclusive, private oceanfront community known for its luxury homes and world-class amenities.
Hualalai: A premier luxury resort community with stunning oceanfront homes and a Four Seasons Resort.
Mauna Kea Resort: An iconic luxury resort community offering breathtaking ocean views and world-class golf.
Kohala Coast: A premier destination with luxury resorts, pristine beaches, and excellent golf courses.

Kauai:

North Shore (Hanalei, Princeville, Anini, Kilauea): Known for its lush environment and high-dollar luxury transactions, often featuring stunning scenery.
Koloa: Frequently sees the most luxury real estate sales on Kauai.

For Rental Income Potential:

Waikiki (Oahu): Commands high tourist traffic, making it ideal for short-term rental properties and offering substantial rental income potential, especially for condos.
Kailua Kona (Big Island): A popular tourist destination with a strong tourism industry, offering good potential for vacation rentals and short-term accommodations.
Kapolei (Oahu): A rapidly growing city with a high rental demand score and year-round visitor appeal, making it attractive for short-term rental investments.

Emerging Neighborhoods to Watch (Oahu):

Hawaii Kai: Offers waterfront developments and community infrastructure upgrades, with luxury marina-front homes.
Kaimuki: Undergoing cultural revitalization with small business growth.
Kaneohe: Seeing enhancements in public spaces and access to natural reserves.

Important Considerations:

Investment Strategy: Your goals (long-term appreciation, rental income, luxury market) will dictate which neighborhoods are the "highest performing" for you.
Market Dynamics: Real estate markets are dynamic. Always consult with local real estate professionals for the most up-to-date information and analysis.
Island Differences: Each Hawaiian island has its unique characteristics and market trends. What performs well on Oahu might differ on Maui or the Big Island.

By considering these factors and the specific neighborhoods mentioned, you can begin to identify the areas in Hawaii that align best with your real estate investment objectives.

By considering these factors and the specific neighborhoods mentioned, you can begin to identify the areas in Hawaii that align best with your real estate investment objectives.