Honolulu — According to Oahu real estate statistics for 2025, although the market was not at its strongest, sales regained a degree of relative stability. As 2026 begins, a key question emerges: Will mortgage interest rates be low enough to enable working families to buy homes?
Aaron Tangonan, chairman of the Honolulu Board of Realtors, explained that the market has moved past the highly competitive atmosphere that once featured bidding wars and multiple offers on most properties. He noted that this shift is linked to a larger supply of existing homes and condominiums.
Despite these changes, property costs remain extremely high. Out-of-state buyers have played a major role in pushing up luxury home prices, which rose by 53% last year alone. In the Kakaako area specifically, 60 transactions were recorded for properties priced at $2 million or more.
Most families in Hawaii find it very difficult to afford a home at the median price, which stands at around $1.1 million. With mortgage interest rates near 6%, monthly housing payments can reach $7,500, excluding additional costs such as insurance and property taxes.
This reality makes the dream of homeownership far out of reach for many. Mei Lai Tracy Ahn, a mortgage specialist at Edge Home Finance, explained that this situation keeps many families in the position of permanent renters. Ahn believes housing costs should not exceed 30% of a household’s income.
To address these challenges, the city is working with real estate developer Tim Lee to convert an old office building on Amana Street near Ala Moana into an affordable housing project called Amana Lofts. According to Lee, all floors of the building have been fully renovated, and the plumbing and electrical systems upgraded, making it look like a brand-new building while retaining its original structure.
However, the project has not won unanimous support. Peter Savio, an affordable housing developer, voiced his opposition to such initiatives, arguing that plans to build thousands of rental units could be harmful in the long term for working families. Savio said that relying on rentals strengthens the financial growth of property owners while weakening the purchasing power of tenants.
Still, others believe rentals remain essential in the current state of Oahu’s market, as they are the only option for many families trying to build their savings gradually. Tangonan shared the experience of a family that recently moved from an affordable rental apartment to a reasonably priced housing development. The question remains how to strike a balance between making housing accessible and dealing with the economic constraints facing families in Hawaii.
