Top 10 Things to Consider When Buying Property in Hawai‘i

By Mark Janes — Building dreams on Maui, one luxury home at a time.

Buying property in Hawai‘i is a dream shared by millions—but making it a reality requires a deeper understanding of how the islands work. Hawai‘i has its own culture, climate, legal structures, land classifications, and market nuances that make purchasing here uniquely rewarding but also uniquely complex.

Whether you're exploring Maui, Oahu, Kauai, Big Island, Molokai, or Lāna‘i, this guide breaks down the 10 essential things you need to know before buying in the Aloha State.

1. Fee Simple vs. Leasehold: Know What You’re Buying

Unlike most of the mainland, Hawai‘i offers two types of property ownership:

• Fee Simple - You own the land and the structures on it—similar to any typical home purchase.
• Leasehold - You purchase the right to use the land for a set number of years, but you do not own the land itself. As the lease shortens, property values and financing options may change.

Why it matters:
Leasehold properties can look like a bargain, but the long-term costs, lease renegotiation terms, and resale challenges must be fully understood. Fee simple offers stability; leasehold offers affordability with limitations.

2. Zoning, Land Use, and Island-Specific Restrictions

Hawai‘i has some of the most carefully regulated land use laws in the U.S. Each county has unique zoning classifications:

• Agricultural (AG)
• Rural (R)
• Urban/Residential (R)
• Apartment/Resort
• Conservation Districts

Your ability to build, add structures, host guests, farm, or operate rentals may be limited.

Mark’s Tip:
A stunning ocean-view parcel might be in a Conservation zone and difficult to develop. Always confirm zoning before falling in love with a property’s potential.

3. Lava Zones, Flood Zones & Natural Hazards

Natural hazards vary by island:

• Lava Zones (Big Island) impact insurance and lending.
• Tsunami evacuation zones affect oceanfront homes.
• Flood zones influence insurance requirements and building design.
• Wind exposure changes roofing and structural requirements.

Takeaway:
Understanding your property’s risk category helps you anticipate insurance costs, design decisions, and long-term safety.

4. Water Source, Utilities & Off-Grid Considerations

Not all properties have county utilities. Some use:

• Catchment water systems
• Private wells
• Septic systems
• Propane
• Off-grid solar with battery storage
• Fiber vs. satellite internet

This affects lifestyle, maintenance, financing, and future development.

Why it matters:
The availability (or absence) of reliable water and utilities is one of the most overlooked factors for mainland buyers. On islands like Moloka‘i, this is especially important.

5. HOA or AOAO Fees & Rules

Many Hawai‘i communities—resort condos, beachfront developments, agricultural subdivisions—have associations in place.

They may regulate:

• Short-term rentals
• Pet rules
• Landscaping
• Home design
• Parking
• Noise
• Renovations

Fees may also include insurance, water, trash, and amenities.

Pro insight:
Always review HOA documents early in the process to avoid surprises. Some Maui resort areas strictly prohibit vacation rentals despite being walking distance to the beach.

6. Insurance Requirements & Increasing Premiums

Because of Hawai‘i’s location and climate, insurance is a crucial part of ownership:

• Homeowners insurance
• Hurricane insurance
• Flood insurance (if required)
• Windstorm coverage

Coastal properties may have higher premiums or special requirements.

Smart move:
Get insurance quotes during due diligence—not after you close.

7. Short-Term Rental (STR) Regulations

Vacation rental laws vary significantly by county—and change often.

Some areas allow:

• Legal short-term rentals (zoned hotel/resort)

Others strictly prohibit them or require:

• NUC permits
• Special STR licenses
• Neighbor notifications
• Tax filings & compliance

Mark’s Tip:
If rental income is part of your investment plan, confirm your STR rights before writing an offer. Maui, in particular, is tightening regulations to protect local housing.

8. Micro-Climates Affect Lifestyle & Home Care

Each island offers multiple micro-climates within just a few miles:

• Sunny, dry: Kihei, Wailea, West O‘ahu
• Cool, upcountry: Kula, Waimea
• Lush & tropical: Hana, Ha‘iku, Wainiha
• Windy coastlines: North Shore areas
• Foggy or rainy zones

Your climate affects:

• Mold control
• Roof lifespan
• Airflow and cooling
• Gardening
• Daily comfort

Insight:
Choose a climate that matches your lifestyle—and understand its maintenance realities.

9. Building & Renovation Costs in Hawai‘i

Construction in Hawai‘i is more expensive due to:

• Shipping materials to the islands
• Limited tradespeople
• Extended timelines
• Strict zoning and permitting processes
• Custom builds or renovations require patience and realistic budgeting.

As a developer myself, I guide my clients through local contractor networks, permitting nuances, and realistic building timelines.

10. Long-Term Value, Resale Potential & Market Trends

Not all Hawai‘i homes appreciate equally. Look at:

• Neighborhood stability
• Tourism strength
• Beach erosion or accretion patterns
• County infrastructure plans
• Access to airports, schools, and amenities
• Supply and demand in that micro-market

Your investment should match your lifestyle goals AND long-term financial goals.

Final Thoughts

Buying a home in Hawai‘i can be one of the most meaningful investments of your life—both personally and financially. The key is understanding the unique elements that shape real estate here.

With the right guidance, the dream of island living becomes not just possible, but deeply rewarding.

If you're thinking about taking the next step—or want tailored insights into Maui, Molokai, or other islands—I’d be honored to help you explore what’s possible.

Mahalo for reading, and welcome to the islands. 🌺🌴