Hawaiʻi’s latest #1 ranking: Home prices

HONOLULU (KHON2) — A recent study has revealed that Hawaiʻi has the highest homeownership costs in the United States. As residents of Hawaiʻi, we face an average of $65,185 per year in housing expenses.

This includes mortgage payments, property taxes, and maintenance fees, making it the most expensive state for homeowners.

The study, conducted by Cinch Home Services, looked at homeownership costs across the U.S. They analyzed average property taxes, mortgage payments, and maintenance fees for median-priced homes in each state.

By calculating these costs, they discovered which states have the highest financial burden for homeowners.

Hawaiʻi tops the list with its high annual housing costs. Despite our average annual take-home pay of $86,376, housing expenses here consume over 75% of our income.

This is mainly due to our high mortgage payments, which average $60,048 per year. Maintenance costs also add up, with an average of $2,458 per year. However, we do benefit from the lowest property tax rate in the U.S., at 0.32%.

A spokesperson from Cinch Home Services commented on the findings.

“The dream of owning a home is a cornerstone of the American identity; however, for many, that dream is fading,” said the spokesperson. “In places like Hawaiʻi, skyrocketing housing costs devour over 75% of a paycheck, forcing residents to choose between a roof and basic necessities. This isn’t an isolated issue – it’s a national problem.”

Hawaiʻi isn’t alone in facing high housing costs. California ranks second with an average of $61,337 per year in housing expenses.

Massachusetts comes in third, with homeowners paying $51,316 annually. Washington and New Jersey round out the top five most expensive states for homeownership.

On the other end of the spectrum, West Virginia has the lowest housing costs in the U.S., with residents spending just $14,506 per year on average. This allows West Virginia homeowners to retain a larger portion of their income after covering housing expenses.

The study’s findings highlight the significant financial challenges faced by homeowners in Hawaiʻi.

Addressing this issue requires a multi-faceted approach, including increasing the housing supply and implementing programs to make homeownership more affordable for low- and middle-income families.

As residents of Hawaiʻi, we understand the challenges of balancing high housing costs with other living expenses.

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This study emphasizes the need for solutions to ensure that the dream of homeownership remains attainable for everyone.