The smallest and slowest-moving of Hawaii’s main markets: the North Shore, the Kapaa coast, Lihue, the sunny South Shore and the quiet West Side. Only a few dozen homes sell in a typical month, so every sale tells you something.
Title Guaranty and Island Properties (Hawaii Information Service data), September 2026. With so few sales, the September medians ($1,490,000 for homes, $726,500 for condos) swing a lot, so the year-to-date figures are a better guide.
Kauai at a glance
Kauai sells in small numbers. In September only 18 single-family homes and 6 condos closed island-wide, so a single sale can move the median by hundreds of thousands of dollars. Year to date, home sales are down about 14% and condo sales about 24%. If you’re buying, expect limited choice in any one area; if you’re selling, pricing right matters more than usual.
Recent sales by area
September 2026 sales, which are often just one or two closings, so read them as examples rather than typical prices.
Source: Island Properties, Kauai market update, September 2026.
Vacation rental rules
Kauai has some of the strictest vacation rental rules in the state. Under county Ordinance 904, single-family vacation rentals are allowed only inside designated Visitor Destination Areas. Outside them, only rentals that were operating before March 7, 2008 and hold a nonconforming use certificate can continue, and no new certificates are being issued. Those certificates have to be renewed every year.
So if you’re buying a home outside a Visitor Destination Area, plan on it being a residence or a long-term rental. Check the parcel’s status with the county Planning Department before you count on any rental income.
Property taxes
Use
Rate per $1,000
Owner-occupied
$2.59
Non-owner-occupied
$5.45 up to $1.3M; $6.05 to $2M; $9.40 above
Vacation rental
$11.30 up to $1M; $11.75 to $2.5M; $12.20 above
Rates for July 2026 to June 2027.
The home exemption is $220,000, rising to $240,000 at 60 and $260,000 at 70. File by Sept. 30. Owner-occupied assessments are capped at a 3% increase a year.
Selling an investment property elsewhere to buy on Kauai? A 1031 exchange can defer the capital gains tax. Check the rental rules above before you pick a replacement property.
Kauai condo directory
Our Kauai condo directory covers 74 complexes in Princeville, Poipu, Kapaa and Lihue, with each building’s Visitor Destination Area status, rental rules, unit count and recent HOA fees.
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General information as of October 2026, not legal or tax advice. Confirm zoning, Visitor Destination Area status and tax classification for a specific property with the County of Kauai before you buy.