New Housing on Lanai: Hokuao and Kaiaulu O Lanai
For decades, almost no new homes were built on Lanai. That’s finally changing, but most of the new housing is meant for people who live and work on the island, not for buyers from off-island.
Hokuao
Hokuao is a rental community in Lanai City built by Pulama Lanai. It was approved in 2021 as 150 two-bedroom rentals, about half at market rent and half below. The state Land Use Commission’s 2023 report showed 73 homes finished and 72 rented. The units are rental only and can’t be sold as condos, and 10 are set aside for teachers.
Kaiaulu O Lanai
Kaiaulu O Lanai is a Maui County rent-to-own project: 72 homes for households earning 30% to 80% of the area median income. Families rent for up to 15 years and then get the chance to buy. The county put $17 million toward it, and the site was blessed in February 2026, with construction starting that year. It’s been described as the first for-sale affordable housing on Lanai in about 35 years.
Why this matters if you’re buying
- These homes won’t show up on the regular market. They’re for qualifying residents.
- They should ease some pressure on Lanai’s long-term rental market over time, which matters if you plan to rent a home out.
- Pulama has stepped back from building luxury vacation homes, so open-market resale homes in Lanai City will stay scarce.
If you live or work on Lanai
If you’re a Lanai resident trying to buy, ask about Kaiaulu O Lanai’s eligibility rules and timeline through Maui County’s housing office. If you’re looking on the open market, we can help you watch for the few resale listings that come up.
If you’re thinking about buying or selling on Lanai, start with our Lanai real estate guide, or send a note below and we’ll get back to you.
Sources
- Hawaii Public Radio, Lanai rental housing project gets green light, Aug 30, 2021
- State Land Use Commission, Hokuao annual report, 2023
- Civil Beat, Ellison shuts down vacation home division on Lanai, Sept 25, 2025
- Hawaii Public Radio, long-awaited affordable housing project underway on Lanai, March 5, 2026
- Hawaii News Now, first for-sale affordable project in 35 years set for Lanai, March 4, 2026