Is It Financially Smart to Move to Hawaii?
Moving to Hawaii is a dream for many—and for good reason. With postcard-perfect beaches, lush green mountains, and year-round sunshine, it’s one of the most iconic and desirable places to live in the world. But is it financially smart?
The answer is: it depends. If you have a strong income, live intentionally, and are prepared for the realities of island life—including its costs—then yes, moving to Hawaii can be one of the best decisions you’ll ever ke.
In this guide, we’ll break down the real costs of living in Hawaii—housing, rent, utilities, groceries, taxes, and more. We’ll also cover strategies locals use to not just survive, but thrive. If Hawaii has captured your heart, let’s make sure it doesn’t empty your wallet.
The Elephant in the Room: Hawaii’s Cost of Living
Hawaii consistently ranks as the most expensive state in the U.S. In 2023, the cost of living in Honolulu was 88% higher than the national average, with housing costs a staggering 202% above the norm. And yet, people continue to move here—for lifestyle, family, and a deep connection to the islands.
But make no mistake: Hawaii isn’t just a lifestyle upgrade—it’s a financial challenge. For most, it requires intention, planning, and a shift in priorities.
What Salary Do You Need to Live Comfortably in Hawaii?
- Single person: $70,000 – $100,000+
- Couple or small family: $120,000 – $200,000+
- To feel rich: Over $400,000 (Top 1% income)
While the median household income in Honolulu is ~$80,000, it often falls short of what’s needed to live comfortably. In fact, HUD considers $93,000/year “low income” on Oahu.
Housing Costs in Hawaii (2023–2024 Data)
Rental Prices – Honolulu County
- Studio: $1,745/month
- 1-Bedroom: $2,102/month
- 2-Bedroom: $2,642/month
- 3-Bedroom: $3,550/month+
These figures vary island to island. Honolulu (Oahu) is the most expensive due to population and job concentration. The Big Island (Hawaii Island) offers the lowest rents, particularly in Hilo and Puna, due to lower demand and limited employment opportunities.
Home Prices – Statewide (March 2023)
- Median Home Price: $970,000
- Median Condo Price: $585,000
Prices vary dramatically by island and region. In Honolulu, areas like Kakaako and Ala Moana are seeing luxury condo developments, while West Oahu continues to grow with more affordable homes in places like Ho‘opili and Koa Ridge.
Cost Breakdown: Everyday Essentials
Utilities
- Electricity: ~$342/month (Highest in the U.S.)
- Water, sewer, internet, etc.: Add $150–$250
Gas Prices (2023)
- Oahu: ~$4.90/gallon
- Big Island: ~$5.30/gallon
Groceries
Hawaii’s food costs are among the highest in the U.S. due to shipping and import reliance.
- Grocery cost index: 164.6 (National average = 100)
- Milk: Up to $8.99/gallon
- Costco Membership: A must for locals trying to save
Taxes in Hawaii
- Income Tax: Up to 11% (progressive brackets)
- Property Tax: Lowest in the nation (~0.27%)
- Sales Tax: Technically no “sales tax,” but a 4.5% General Excise Tax is applied to almost all business transactions
What’s the True Cost of Living in Hawaii?
Let’s take an example: A single person earning $93,000 (considered low income on Oahu).
- Federal Taxes (22%) + State Taxes (approx. 8.25%) = ~$28,400
- Take-home income: ~$64,600/year or ~$5,385/month
Now subtract:
- Rent: ~$2,100–$3,000
- Groceries & Gas: ~$800–$1,200
- Utilities: ~$300–$500
- Health insurance, internet, phone, transportation, and leisure… it’s tight.
This is why so many residents need dual incomes, live with extended family, or maintain multiple jobs.
Tips to Make It Work in Hawaii
1. Be Intentional with Every Dollar
Living in paradise comes at a cost—don’t let it be your peace of mind. Budget wisely, buy in bulk, and avoid mainland spending habits.
2. Two Incomes > One
The phrase “It’s cheaper to keep her (or him)” has never felt more true. Dual income households make a massive difference here—emotionally and financially.
3. Location Matters
Living on Oahu brings job opportunities but also traffic and higher prices. Big Island or Maui may offer slower pace and lower costs—but fewer job prospects.
4. Consider Remote Work
If you can bring your mainland salary with you (tech, finance, creative industries), you’ll have a serious advantage over many local wages.
5. Choose Community Over Consumerism
Living in Hawaii is less about status and more about connection—nature, neighbors, and ‘ohana (family). This mindset shift is key.
Frequently Asked Questions
Q: Can you live in Hawaii on $50,000/year?
Possible, but tough—especially on Oahu. You’ll need roommates, frugal habits, and likely additional income streams.
Q: Is Hawaii more expensive than California?
Yes. Especially when it comes to groceries, energy, and shipping costs.
Q: What’s the cheapest island to live on?
The Big Island—especially Hilo and Puna—offers the lowest home prices and rents in the state.
Q: How much should I save before moving?
At least 3–6 months of living expenses + first month’s rent and deposit. Aim for $10,000–$20,000 minimum.
Final Thought: Is It Worth It?
Living in Hawaii isn’t about luxury—it’s about lifestyle. If you’re chasing status, Hawaii will quickly humble you. But if you crave community, nature, and a slower rhythm of life, there’s no better place on earth.
Yes, it’s expensive. But for those who prepare financially and embrace the aloha spirit, it can be absolutely priceless.
