Hawaii
Hawaii offers SFR investors a unique opportunity. Despite its high barrier to entry, with a median home price of $742,600 (up 0.4% YoY), limited inventory and competition among local and non-resident investors, securing a property with the right strategy can lead to a profitable long-term investment.
With the homeownership costs likely to remain high for the foreseeable future, and considering that more than a third of households rent1, long-term rentals are viable in this market. Average rents increased 3.33% YoY2.
While LTRs are viable, they may not be the best option. Considering that tourism is bouncing back to pre-pandemic levels, visitors spent nearly $21 billion in 20243 and the demand for short-term rentals increased; STRs are back as the ideal strategy. While Honolulu and Maui are great options for STRs, the Big Island earned an 88 out of 100 market score on AirDNA4.
Note: Visio Lending provides Hawaii investors with added asset protection and financial flexibility, as we require all borrowers in the state to invest through an LLC or corporate entity.
Sources:
1: U.S. Census Data
2: Zillow
3: American City Business Journals
4: AirDNA
