Hawaii's Median Single-Family Home Price Nears $1 Million, Solidifying Nation's Highest Housing Costs

Hawaii continues to stand as the United States' most expensive housing market, with the median single-family home price reaching $975,500 as of February 2025. This stark reality was recently underscored by a tweet from Rohin Dhar, who remarked, "You think housing is expensive in your market check out Hawaii 😮." The state's average home value was approximately $840,570 in the first quarter of 2025, significantly higher than the national average.

On O‘ahu, the median sales price for single-family homes reached $1,021,016 in January 2024, and tallied $1.1 million by the end of 2024. While condos offer a comparatively lower entry point, their median price on O‘ahu still stood at $515,000 in late 2024 and $574,300 across the state in February 2025. These figures consistently place Hawaii at the top of national housing cost rankings.

The persistently high prices are largely attributed to Hawaii's unique geographical constraints, which severely limit the availability of land for development. Furthermore, strong demand from luxury and second-home buyers, often from out-of-state, contributes significantly to market inflation. The state's robust tourism industry also fuels demand for short-term rentals, further reducing available housing stock for residents.

Despite a slight decrease in the overall average home cost in early 2025 and an uptick in active inventory, affordability remains a critical challenge for many. Trevor Benn, president of the Honolulu Board of REALTORS®, stated that "affordability challenges remain a significant hurdle for many buyers," citing elevated mortgage rates, maintenance fees, and insurance costs as key factors influencing buyer behavior. The market is showing signs of increased accessibility for buyers with a rising inventory and slower sales growth.