Best Affordable Places to Live in Hawaii in 2025
(Last Updated – 02/2025)
The state of Hawaii is spread out across a string of stunning tropical islands, including Hawaii, Oahu, Maui, Kauai, and a handful of smaller islands. Far from the mainland United States, the Aloha State has a high cost of living. Most goods must be shipped in from thousands of miles away. The tradeoff, however, is breathtaking scenery, from volcanic moonscapes to lush tropical forest, beautiful beaches, a warm climate year-round, and a relaxed culture.
Best Places to Live in Hawaii
The cost of living in Hawaii averages 46% higher than the rest of the U.S. A typical home costs $831,305, more than double the average U.S. home value of $355,328.
That said, Hawaii’s average state property tax is the lowest in the nation, just 0.27%, though high housing prices make the median annual tax payment much higher than in other parts of the U.S. If you’re considering a move to Hawaii, plan carefully with your budget in mind. Affordability can vary dramatically across Hawaii’s islands, so it may be worth considering cities large and small across the island chain.
💡 Quick Tip: When house hunting, don’t forget to lock in your home mortgage loan rate so there are no surprises if your offer is accepted.
Best Affordable Places to Live in Hawaii
Here’s a look at some of the best affordable places to live across the Hawaiian islands. Peruse the full list to get a better sense of the options available to you.
1. Hilo, Hawaii
Photo credit: iStock/steinphoto
Located on the eastern side of the big island of Hawaii, the city of Hilo sits on the water. It is surrounded by forest reserves and has quick access to hiking and beaches, such as the secluded Carlsmith Beach Park. The city is also home to the Hilo International Airport, and is one of the largest census-designated places in the state.
Looking to buy a house instead of rent? Consider these tips to qualify for a mortgage.
Population: 47,627
Median Household Income: $78,713
Cost of Living: 140% of U.S. average
Average Rent Price: $1,823
Home Price-to-Income Ratio: 6.47
2. Waianae, Oahu
Photo credit: iStock/Teri Wertman
Tucked away on the west coast of Oahu, Waianae offers a wealth of outdoor activities, including hikes in the Waianae Mountain Range, access to numerous nearby beaches, such as Pokai Bay Beach Park, and the weekly Waianae Farmers’ Market.
Population: 13,749
Median Household Income: $84,766
Cost of Living: 142% of the U.S. average
Average Rent Price: $2,300
Home Price-to-Income Ratio: 6.77
3. Ewa Beach, Oahu
Photo credit: iStock/Teri Wertman
Once a sugar plantation town, Ewa Beach is now a sprawling suburb 35 minutes north of Honolulu. Nearby White Plain Beach with its beautiful view of Diamond Head volcano makes the area a good place for outdoor recreation.
The average home value in Ewa Beach is $824,454. Some buyers here will want to look into a jumbo mortgage loan tailored to higher-priced properties.
Population: 15,167
Median Household Income: $124,958
Cost of Living: 156% of the U.S. average
Average Rent Price: $3,600
Home Price-to-Income Ratio: 6.6
Best Places to Live in Hawaii for Families
If you’re looking to raise a family in Hawaii, here are three cities that provide great options for community, resources, and schools.
1. Hilo, Hawaii
Photo credit: iStock/steinphoto
With plenty of restaurants, museums and outdoor spaces to enjoy, Hilo offers plenty to do for families. Visit the Mokupāpapa Discovery Center to learn about marine life around the Hawaiian island, or take a trip to the ‘Imiloa Astronomy Center to see some of the world’s most advanced telescopes and learn about early Polynesian navigation history.
Population: 47,627
Median Household Income: $78,713
Cost of Living: 140% of U.S. average
Average Rent Price: $1,823
Home Price-to-Income Ratio: 6.47
2. Pearl City, Oahu
Photo credit: iStock/sphraner
Located on Pearl Harbor, Pearl City includes 11,026 households with children. Families are drawn here by its above-average public school system. They can play and relax at numerous public parks, including the Pacheco playground.
Population: 46,812
Median Household Income: $114,682
Cost of Living: 145% of U.S. average
Average Rent Price: $2,550
Home Price-to-Income Ratio: 8.0
3. Honolulu, Oahu
Photo credit: iStock/jhorrocks
Honolulu is home to 84,375 family households. Families with children can explore the Hanauma Bay Nature Reserve, the Bishop Museum, and Ala Moana Center for shopping, dining, and entertainment. Parents may appreciate the city’s above-average schools.
Planning on purchasing instead of renting? Make sure you understand the different types of mortgage loans before you get serious about looking for a property.
Population: 341,778
Median Household Income: $85,428
Cost of Living: 172% of U.S. average
Average Rent Price: $2,800
Home Price-to-Income Ratio: 9.0
Best Places to Live in Hawaii for Young Adults
Young adults are often looking for job opportunities, a robust nightlife and entertainment options, and, of course, proximity to other young adults. These three places are our picks.
1. Lihue, Kauai
Photo credit: iStock/Irina Brester
Young adults looking for a small-town feel may consider Lihue on the eastern shores of Kauai. Residents enjoy the outdoors on nearby hiking trails and beaches, and can visit local landmarks like the Ninini Point Lighthouse.
Population: 8,649
Median Household Income: $77,420
Cost of Living: 153% of the U.S. average
Average Rent Price: $2,800
Home Price-to-Income Ratio: 9.72
2. Pearl City, Oahu
Photo credit: iStock/sphraner
Pearl City rests on the outskirts of Honolulu on the shores of Pearl Harbor. It offers a dense suburban feel with many restaurants, cafés, and parks.
Population: 46,812
Median Household Income: $114,682
Cost of Living: 145% of U.S. average
Average Rent Price: $2,550
Home Price-to-Income Ratio: 8.0
3. Honolulu, Oahu
Photo credit: iStock/jhorrocks
Honolulu offers the resources (and nightlife) of a big city. The University of Hawaii is here, as well as shopping centers and a diverse range of eateries. Despite Honolulu’s size, it is also close to natural resources, including hiking and world-famous beaches.
Particularly if this is your first time buying a home, make sure you understand the difference between mortgage preapproval and prequalification before you get into the mortgage application process.
Population: 341,778
Median Household Income: $85,428
Cost of Living: 172% of U.S. average
Average Rent Price: $2,800
Home Price-to-Income Ratio: 9.0
Best Places to Live in Hawaii for Retirees
The realities of a remote island location mean that the cost of living is typically much higher throughout Hawaii than in mainland states. This can eat into retirement savings. However, many retirees are still drawn to Hawaii by its warm climate and relaxing lifestyle. And it’s a plus that Social Security benefits are not subject to state taxes.
1. Hilo, Hawaii
Photo credit: iStock/steinphoto
About 23% of people in Hilo are 65 and older. They can enjoy art galleries, museums, and events at the local University of Hawaii, as well as shopping at the local farmers market and fish market. Plant lovers flock to the Hawaii Tropical Botanical Garden in Papaikou and the Liliuokalani Gardens Japanese garden.
Population: 47,627
Median Household Income: $78,713
Cost of Living: 140% of U.S. average
Average Rent Price: $1,823
Home Price-to-Income Ratio: 6.47
2. Waianae, Oahu
Photo credit: iStock/Teri Wertman
Retirees looking for a small town feel may appreciate this sleepy town on the western side of the island of Oahu. Residents 65 and older represent about 14.4% of the population and can enjoy local restaurants, shops, or relax on Pokai Beach.
Population: 13,749
Median Household Income: $84,766
Cost of Living: 142% of the U.S. average
Average Rent Price: $2,300
Home Price-to-Income Ratio: 6.77
3. Kahalu’u, Oahu
Photo credit: iStock/Teri Wertman
Kahalu’u offers residents a mixed suburban and rural setting. The slow-paced town is only 30 minutes from Honolulu and access to big-city resources like shopping and hospitals. Nearly 22% of the population here is 65 or older.
Population: 5,065
Median Household Income: $128,661
Cost of Living: 171.5% of U.S. average
Average Rent Price: $2,600
Home Price-to-Income Ratio: 8.24
💡 Quick Tip: If you refinance your mortgage and shorten your loan term, you could save a substantial amount in interest over the lifetime of the loan.
Best Places to Live in Hawaii Near the Beach
The islands of Hawaii sit like a string of jewels in the middle of the Pacific Ocean. No city is far from the water, and most are blessed with easy access to sparkling white and black sand beaches. Here are some spots that stand out for their beaches and relative affordability in this highly priced paradise.
1. Waianae, Oahu
Photo credit: iStock/Teri Wertman
A small town on the western shores of Oahu, Waianae is home to Makaha Beach, which is good for surfing. Those looking for a protected bay for swimming may try Maili Beach with its stunning mountain views.
Population: 13,749
Median Household Income: $84,766
Cost of Living: 142% of the U.S. average
Average Rent Price: $2,300
Home Price-to-Income Ratio: 6.77
2. Kailua, Oahu
Photo credit: iStock/simonkr
Residents of Kailua on the eastern shores of Oahu can enjoy nearby Lanikai Beach for snorkeling with sea turtles, or Kailua Beach with spectacular vistas. Though relatively small, the city offers residents a diverse array of shops and restaurants. Home cooks may enjoy the local farmers market.
Population: 39,762
Median Household Income: $146,615
Cost of Living: 173% of U.S. average
Average Rent Price: $2,800
Home Price-to-Income Ratio: 9.0
3. Honolulu, Oahu
Photo credit: iStock/jhorrocks
Honolulu is home to world famous Waikiki Beach, which is lined with highrise hotels, and provides easy access to shopping. Waikiki welcomes sunbathers, swimmers and world class surfing competitions throughout the year.
Population: 341,778
Median Household Income: $85,428
Cost of Living: 172% of U.S. average
Average Rent Price: $2,800
Home Price-to-Income Ratio: 9.0
The Takeaway
When considering living in Hawaii, carefully examine your budget. Cities big and small across the island tend to be much more expensive than the national average, and it may be well worth considering the cost of living in other states. If you decide the sticker price is within your reach, consider your personal needs when deciding what island to live on and what type of city you wish to choose.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
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FAQ
Where is the best and cheapest place to live in Hawaii?
The cost of living in Hawaii is higher than in most of the other U.S. states, so truly “cheap” places are hard to find. Hilo or Waianae would be two of the more affordable (and wonderful) places to live.
Where is the best area to live in Hawaii?
The best area to live depends on your individual wants and needs. However, one city that appears repeatedly on our list as a great and relatively affordable place to live in Hawaii is Hilo.
What part of Hawaii has the cheapest rent?
Rents are relatively affordable in Hilo. Waianae is another good choice. And Honolulu, the big city, offers such a wide range of properties that those looking for a relatively affordable pick will likely find something that suits their budget.
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