Big Island Real Estate Market Trends to Watch in the Next 12 Months
big island real estate forecast
Kailua-Kona, HI
Quick Facts
• As of 2023, the median home price on the Big Island was around $640,000, with sales prices varying greatly depending on location and property type.
• The demand for housing on the Big Island remains strong, driven by remote workers, retirees, and those seeking a tropical lifestyle.
• Land prices have increased due to the growing trend of luxury developments and eco-tourism projects.
• The Hilo and Kailua-Kona areas are in high demand, with nearby neighborhoods experiencing growth and increasing property values.
• Oceanfront properties on the Big Island’s west coast, particularly in the Kohala region, command premium prices due to their stunning views and access to beaches.
• The East Hawaii region is experiencing development growth, with many new subdivisons and affordable housing projects in progress.
• Short-term vacation rentals have fueled an increase in property investments on the Big Island, with some owners earning significant income through services like Airbnb.
• Economic growth on the Big Island is driving demand for commercial real estate, including office and retail spaces.
• Renewable energy projects, particularly solar farms, have led to increased land purchases for sustainable energy development.
• The county’s initiative to protect agricultural lands has put a cap on the conversion of such properties for residential or commercial use.
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Big Island Real Estate Forecast What to Expect in the Coming Years
The Big Island of Hawaii is known for its stunning natural beauty breathtaking landscapes and rich cultural heritage making it a popular destination for both tourists and residents alike The island s real estate market has experienced significant growth in recent years with many individuals and families looking to invest in a piece of paradise However like any other market the Big Island real estate market is subject to fluctuations and trends In this article we will take a closer look at the current state of the Big Island real estate market and provide a forecast of what to expect in the coming years
Current State of the Big Island Real Estate Market
The Big Island real estate market has experienced a significant surge in recent years with home prices increasing by over 50 percent in the past five years The median home price on the Big Island is currently around 600000 with luxury properties selling for millions of dollars The demand for housing on the Big Island is high with many buyers competing for a limited number of properties This has driven up home prices and made it increasingly difficult for firsttime homebuyers to enter the market
One of the main drivers of the Big Island real estate market is tourism The island s tourism industry is booming with millions of visitors arriving each year to experience the island s natural beauty and attractions This has led to a surge in demand for vacation rentals and other types of accommodation many of which are being purchased by investors looking to cash in on the tourism boom
Another factor contributing to the growth of the Big Island real estate market is the island s agricultural industry The Big Island is home to a thriving agricultural sector with many farms and ranches producing a wide range of crops including coffee macadamia nuts and cattle The demand for agricultural land and properties has increased in recent years as more investors look to capitalize on the island s fertile soil and favorable climate
Big Island Real Estate Forecast
So what can we expect from the Big Island real estate market in the coming years Based on current trends and market analysis here are a few predictions
Increased Demand for Sustainable Housing
As concern about climate change and sustainability continues to grow we can expect to see an increased demand for sustainable housing on the Big Island Many homeowners and buyers are now looking for properties that are environmentally friendly and sustainable such as those with solar panels and rainwater harvesting systems This trend is expected to continue in the coming years as more individuals look to reduce their carbon footprint and live a more sustainable lifestyle
Growth of the Luxury Market
The Big Island is already a popular destination for luxury travelers and this trend is expected to continue in the coming years We can expect to see an increase in demand for luxury properties including highend vacation rentals and private estates Many luxury buyers are attracted to the island s natural beauty and exclusivity making it an ideal location for those looking for a piece of paradise
Increased Demand for Agricultural Land
The demand for agricultural land on the Big Island is expected to increase in the coming years as more investors look to capitalize on the island s fertile soil and favorable climate This trend is driven by the growing demand for locally produced food and the increasing popularity of agritourism Many farmers and ranchers are now selling their products directly to consumers and offering tours and other agritourism activities
Challenges Facing the Big Island Real Estate Market
While the Big Island real estate market is expected to continue growing in the coming years there are several challenges that it will face One of the biggest challenges is the lack of affordable housing on the island With home prices increasing by over 50 percent in the past five years many firsttime homebuyers are finding it difficult to enter the market
Another challenge facing the Big Island real estate market is the threat of natural disasters The island is prone to volcanic eruptions earthquakes and other natural disasters which can have a devastating impact on the local economy and housing market In 2018 a volcanic eruption on the Big Island caused widespread destruction and displaced many residents This highlights the importance of considering natural disaster risk when investing in real estate on the Big Island
Conclusion
The Big Island real estate market is expected to continue growing in the coming years driven by the island s natural beauty and thriving tourism and agricultural industries However there are several challenges that the market will face including the lack of affordable housing and the threat of natural disasters By understanding these trends and challenges investors and homeowners can make informed decisions about the Big Island real estate market and capitalize on its many opportunities
Tips for Buying Real Estate on the Big Island
If you re considering buying real estate on the Big Island here are a few tips to keep in mind
Research the Local Market
Before investing in real estate on the Big Island it s essential to research the local market Understand the current trends and prices and what drives demand for housing on the island Consider factors such as the island s tourism industry agricultural sector and natural disaster risk
Work with a Local Agent
Working with a local agent can be invaluable when buying real estate on the Big Island Local agents have a deep understanding of the island s real estate market and can provide valuable insights and advice They can also help you navigate the often complex process of buying property on the island
Consider Sustainable and EcoFriendly Properties
The Big Island is known for its natural beauty and many homeowners are now looking for sustainable and ecofriendly properties Consider properties that are environmentally friendly and sustainable such as those with solar panels and rainwater harvesting systems
Conclusion
The Big Island real estate market is expected to continue growing in the coming years driven by the island s natural beauty and thriving tourism and agricultural industries By understanding the current trends and challenges facing the market and following a few simple tips investors and homeowners can capitalize on the many opportunities that the Big Island real estate market has to offer
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Frequently Asked Questions:
Big Island Real Estate Forecast FAQ
Q What is the current state of the Big Island real estate market
A The Big Island real estate market is relatively stable with a mix of buyers and sellers due to the ongoing impact of the pandemic and fluctuations in the economy
Q Are home prices on the Big Island expected to go up or down in the future
A Based on industry trends and current market conditions home prices on the Big Island may experience moderate growth due to the limited supply of housing and increasing demand from buyers
Q What are the most in demand types of properties on the Big Island
A Single family homes and condos in desirable locations such as Kailua Kona and Hilo are in high demand due to their proximity to amenities and natural attractions
Q Are there any new developments or projects on the Big Island that may impact the real estate market
A Yes several new developments are underway including residential projects and commercial spaces which may impact the local real estate market in terms of supply and demand
Q How does the Big Island real estate market compare to other islands in Hawaii
A The Big Island real estate market is distinct from other islands in terms of its geography and demographics however it is generally considered to be more affordable than Oahu and less expensive than Maui
Q What are the benefits of investing in Big Island real estate
A Investing in Big Island real estate can provide a steady income stream and long term appreciation in property value due to the islands natural attractions and limited supply of housing
Q What are the risks of investing in Big Island real estate
A Risks of investing in Big Island real estate include natural disasters such as volcanic eruptions and tsunamis and market fluctuations which can impact property values
Q How can I stay informed about the Big Island real estate market
A Staying informed about the Big Island real estate market can be done through online research networking with local agents and attending real estate events and conferences
Related Links & Information:
Big Island Homes for Sale – Zillow
Big Island Real Estate – Realtor.com
Big Island Real Estate Market – Redfin
2023 Hawaii Real Estate Outlook – Savills
Hawaii Real Estate Market Forecast 2023 – Hawaii Business Magazine
