Hawai’i, much like Sally Field is feeling the “like."
In a 2020 Economic Forecast Report presented to State lawmakers by Hawaii’s Chief Economist, Eugene Tian, Buyers from outside the state have purchased 24% of homes across Hawaii over the past decade.
The Department of Business, Economic Development and Tourism Head Eugene Tian based his calculations on data from the preceding decade in which residents of the other 49 U.S. states purchased approximately 1,000 (20%) of the 5,000 homes sold. International buyers acquired approximately 200 (4%) of those homes.
Non-resident purchases made up 15% of the sales on Oahu, but Tian indicated that the percent share is higher on the neighboring islands. “Maui, Kauai, and the Big Island had over 40% of their residences purchased by out-of-Hawaii buyers”. Tian said he expects the trend of home buyers from outside the state trend will continue.
One of the reasons for this trend he noted is that Hawaii has the lowest property taxes of any state, making second homes more affordable compared to high-tax states like New York and California.
Tian also shared that “The median price of an Oahu home fell modestly last year, decreasing by less than 1%, while condominium prices rose about 1% by the end of 2019. Prices were mostly up elsewhere in the state, where there has been less construction and populations have grown or declined less dramatically than on Oahu."
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