Cost of Living in Hawaii: Average Rent, Groceries, Utilities, and More

Living in Hawaii might feel like a dream, but paradise comes with a price tag. 

The cost of living in Hawaii is famously high, and for good reason—who wouldn’t pay a little extra to enjoy year-round sunshine, postcard-worthy beaches, and island vibes? From apartments in Honolulu overlooking the Pacific to charming homes in Hilo surrounded by lush greenery, the state offers a unique lifestyle that’s as enticing as it is expensive. But don’t worry, we’ll break down the costs so you can decide if trading mainland budgets for aloha living is worth it.

Housing costs: Median home prices and average rent in Hawaii

When it comes to housing, the cost of living in Hawaii truly makes its presence felt. With an average rent in Hawaii of $2,000, it’s significantly above the national average of $1,645, and some areas are even pricier. Honolulu, for instance, often commands top dollar for its sought-after urban living and ocean views, making it one of the most expensive housing markets in the state. If you’re looking for something more affordable, consider Hilo on the Big Island, where rents and home prices tend to be lower, offering a more budget-friendly alternative to Oahu’s bustling city life. Whether you’re aiming for a high-rise condo with city lights or a laid-back home in a quieter corner of paradise, it’s clear that housing is one of the biggest factors shaping the cost of living here.

Hawaii housing costs: Average rent and median home sale prices

Housing costs in popular cities in Hawaii

Hilo

Hilo, located on the lush Big Island, is one of the more affordable cities in Hawaii. The average rent in Hilo sits at $1,890, slightly below the average rent in Hawaii of $2,000 but still above the national average of $1,645. Housing prices reflect the island’s natural appeal, with the median home sale price in Hilo at $550,000—higher than the national median of $428,000 but reasonable compared to other Hawaiian cities. Residents here enjoy a laid-back lifestyle surrounded by verdant landscapes, but the cost of living in Hawaii ensures even “affordable” cities like Hilo require careful budgeting.

Honolulu 

As Hawaii’s bustling capital, Honolulu comes with some of the highest housing costs in the state. The average rent here is $2,500, significantly above the national average and the state’s $2,000 mark. The median price of homes for sale in Honolulu sits around $565,000, reflecting the demand for housing in this vibrant urban hub. Living in Honolulu means access to world-class beaches, a thriving dining scene, and ample job opportunities. While housing costs might strain your budget, the convenience and amenities make it a sought-after destination for many.

Kihei

Kihei, nestled on Maui’s sunny coast, offers luxurious living at a hefty cost. The average rent in Kihei is $4,035—more than double the state average and far beyond the national average of $1,645. Median home sale prices are also sky-high at $827,500, making it one of Hawaii’s priciest real estate markets. This stunning beach town attracts those seeking picturesque views and a relaxed lifestyle, but the cost of living in Hawaii’s paradise demands a serious financial commitment. For those who can afford it, Kihei delivers an unmatched quality of life.

Hawaii is one of the most expensive states for utility costs

Utilities in Hawaii are among the highest in the nation, second only to Connecticut, and they reflect the unique challenges of living on an island. Basic utilities like electricity, water, and gas average $449.54 per month, but when you include internet and phone bills, the total climbs to $738.54—well above the U.S. average of $609.90. The state’s reliance on imported fuel and the demands of powering a tropical lifestyle contribute to these elevated costs. Whether you’re running air conditioning to combat the island heat or relying on a solid internet connection for remote work, the cost of utilities is a major factor in the overall cost of living in Hawaii.

Hawaii leads the nation with the highest monthly grocery costs

Grocery costs in Hawaii are the highest in the nation, averaging nearly 57% more than the U.S. national average. Living on an island paradise comes with the challenge of importing most food and household goods, which significantly drives up prices. For example, groceries in Hilo cost 56% more than the national average—here, a dozen eggs will set you back $10.34 compared to $3.97 nationally, dishwashing pods cost $29.36 versus $19.93, and potatoes go for $6.95 instead of $4.85. Honolulu is slightly less expensive but still pricy, with grocery costs around 26% above the U.S. average. In the capital, eggs cost $4.08, dishwashing pods $22.72, and potatoes $5.33. While Hawaii’s stunning views may nourish the soul, a trip to the store is a reminder that the cost of living in Hawaii is as high as its breathtaking volcanic peaks.

Above–average transportation costs drive up the cost of living in Hawaii

Transportation costs in Hawaii significantly contribute to the state’s high cost of living, with the average gas price reaching $4.55 per gallon—significantly higher than the national average of $3.05. This steep difference stems from Hawaii’s reliance on imported fuel, adding a premium to everyday commuting costs. While gas prices are high, many residents balance this by using public transportation or living closer to work to minimize fuel expenses. For instance, Honolulu’s TheBus system is a popular, cost-effective option, providing extensive coverage across the island of Oahu. However, for those on islands like Maui or the Big Island, where public transit options are limited, owning a vehicle is often a necessity, adding further to monthly transportation budgets. These costs, while steep, are part of the tradeoff for living in a state renowned for its idyllic landscapes and laid-back lifestyle.

Expect to pay more for healthcare in Hawaii 

Healthcare costs in Hawaii are higher than the national average, reflecting the state’s unique geographic challenges and emphasis on high-quality care. What you’ll spend depends largely on your personal needs, type of coverage, and location. For example, a trip to the dentist in Hilo costs about $144.28, roughly 24% more than the national average of $116.86. Seeing a doctor there will set you back $178.31, 25% above the national average of $142.74. In Honolulu, healthcare costs are even steeper—a dentist visit averages $125.50, and a doctor’s appointment costs $202.08. These elevated prices mean planning for healthcare is essential, particularly for families or those requiring frequent care. While employer-provided insurance and Hawaii’s Prepaid Health Care Act can offset some costs, budgeting for occasional out-of-pocket expenses is still a wise move

Taxes in Hawaii are considerably moderate in comparison to other higher costs in the state

Taxes in Hawaii are a mixed bag when it comes to the cost of living. The state’s income tax is on the higher side, with rates ranging from 1.40% to a steep 11.00%, depending on your income bracket. On the other hand, Hawaii’s sales tax is surprisingly competitive, with a state rate of 4.00% and a combined average of 4.50% when factoring in local taxes—lower than the U.S. average of 5-7%. Property owners in Hawaii benefit from one of the lowest effective property tax rates in the country at just 0.26%. This is a significant plus for homeowners but less impactful for renters. While Hawaii’s tax structure may seem daunting at first glance, the lower property and sales tax rates help balance the state’s overall tax burden, particularly for residents who own homes.

How much do I need to earn to live in Hawaii?

To determine how much you should earn to live comfortably in Hawaii, a good starting point is the 30% rule. This guideline suggests you spend no more than 30% of your monthly income on housing costs, helping leave room for other essential expenses like groceries, utilities, and transportation. With the average rent in Hawaii at $2,000, you’d need to earn at least $6,667 per month, or about $80,000 annually, to follow this rule. However, location matters. In Honolulu, where average rent climbs to $2,500, that annual income rises to $100,000. In Kihei, rents soar to $4,035, requiring a whopping $161,400 annual income to stick to the 30% rule. Keep in mind, this is just a guideline—living comfortably here also means accounting for the elevated cost of living in Hawaii for other expenses like groceries, utilities, and transportation, which may require earning more than these figures suggest.

Methodology

Average rent, median home sale price, state average monthly rent, national rent prices, and cost of living data sourced from Redfin.