Honolulu’s High Cost Of Living: A Closer Look
Honolulu residents face the challenge of navigating one of the nation's highest costs of living, as revealed by a recent analysis examining the benchmarks for a "comfortable" lifestyle in the city.
According to financial firm Smart Asset, employing the 50/30/20 budget model, which allocates 50% of income for basic needs, 30% for entertainment, and 20% for debt repayment, savings, or investment, reveals that a single adult in Honolulu would need to earn $53.80 an hour to achieve this standard. For a family of four, the required annual income for a comfortable living is estimated at $299,520, translating to an hourly wage of $144.20.
Despite these figures, data from the Bureau of Labor Statistics indicate that the average wage in Honolulu stands at approximately $30 per hour, underscoring the significant disparity between earnings and the cost of living.
Among 99 cities analyzed nationwide, Honolulu ranked as the 15th most expensive. Topping the list was New York City, where individuals must earn $66.62 per hour to sustain a comfortable lifestyle. San Jose and Irvine followed closely as the second and third costliest cities, respectively.On average, the analysis suggests that individuals require an annual income of $96,500 to attain sustainable comfort in major U.S. cities.
Source: Excerpted from Hawaii News Now, copyright 2024. All rights reserved. March 28, 2024
Honolulu Board of Realtors
HBR March 2023 Local Market Update
O‘ahu's Housing Market Remains Sluggish
Median sales prices rise slightly as sales volume dips for both single-family homes and condos
The spring season started with little momentum. Though real estate activity remains sluggish, we continue to see properties in more affordable price ranges sell. Single-family homes priced $899,999 and below experienced a 6.1% increase for a total of 70 sales, and condos within the $200,000 to $399,999 range marked an 11.8% uptick, for a total of 95 sales.
HBR's latest Monthly Statistics Report shows:
For March
- The median sales price for single-family homes rose to $1,100,000, marking a 1.5% year-over-year increase. Conversely, the median price for condos dropped to $500,000, down 6.7% from last March’s record-setting price of $536,000.
- Single-family home sales declined by 2.5% year-over-year, while condo sales slumped 22.5%.
- Both single-family homes and condos typically enter a contract within a month, with median days on the market at 31 and 29 days, respectively.
- Single-family home sales recorded 23% closing above the original asking price compared to 24% last March, while the percentage of condos sold above the asking price dipped slightly to 18% from 21% over the same period.
For the first quarter
- First-quarter sales grew 6.1% for single-family homes but fell by 7.1% for condos.
- Year-to-date median prices reached $1,070,000 for single-family homes and $505,000 for condos, a 4.4% and 1.0% year-over-year increase, respectively.
"Elevated mortgage rates have prompted another slowdown in market activity," said Fran Gendrano, president of the Honolulu Board of REALTORS®. "However, there are still positive signs, with strong demand for single-family homes in affordable price ranges and increasing pending sales."
Single-family homes continued to draw buyers, with 280 pending sales, an 8.5% year-over-year increase. Condo contract signings remained steady compared to last March, with 439 pending sales, a moderate 1.1% decrease. Pending sales in the $800,000 to $999,999 range continued to mark a sizable share for single-family homes, with 81 contract signings this March, growing 15.7% year-over-year. Additionally, condos priced between $300,000 to $599,999 contributed nearly 50% of the month’s pending sales.
"The journey to homeownership is unique for everyone based on their needs. Working with a REALTOR® ensures clients have the support and expertise needed to navigate shifting market dynamics," Gendrano added.
New listings in the single-family home market remained nearly steady compared to a year ago, with 291 new listings, a slight 0.7% decline. Meanwhile, condos added 647 new listings, up 22.1%. Overall, new listing volume rose in both markets for the first quarter, with single-family homes up by 9.7% and condos up by 16.2%.
Source. Honolulu Board of Realtors
National Association of Realtors
NAR Nationwide Home Sales Update
First-time buyers were responsible for 26% of sales in February; Individual investors purchased 21% of homes; All-cash sales accounted for 33% of transactions; Distressed sales represented 3% of sales; Properties typically remained on the market for 38 days. #NAREHS
Source: Nationa Association of Realtors March 21, 2023
Bangko Sentral Ng Pilipinas
Nationwide residential property prices rise by 6.5% YoY but decline by 3.6% QoQ in Q4 2023
Nationwide residential property prices rise by 6.5% YoY but decline by 3.6% QoQ in Q4 2023
Nationwide residential property prices rise by 6.5% YoY but decline by 3.6% QoQ in Q4 2023
Residential real estate prices of various types of new housing units in the Philippines continued to increase in Q4 2023, rising by 6.5 percent year-on-year (YoY), albeit lower than the 12.9 percent growth in Q3 2023. Quarter-on-quarter (QoQ), the index contracted by 3.6 percent, which is a reversal of the 3.4 percent growth registered in Q3 2023 (Figure 1).
Property prices increase YoY in NCR and AONCR Yo, residential property prices in the NCR
Nationwide residential property prices rise by 6.5% YoY but decline by 3.6% QoQ in Q4 2023
Nationwide residential property prices rise by 6.5% YoY but decline by 3.6% QoQ in Q4 2023
By area, residential property prices increase YoY in both the NCR and AONCR
On a YoY basis, residential property prices in the National Capital Region (NCR) rose by 4.3 percent in Q4 2023 as the growth in the prices of single-detached/attached houses and townhouses outweighed the decline in the prices of condominium units (Figures 1 and 2a).
