High Mortgage Rates Pressure Hawaiʻi Housing Market as Home Sales Decline

HAWAIʻI — November 8, 2026

High mortgage rates are adding to the cost of homeownership across Hawaiʻi, putting pressure on prospective buyers and contributing to a more uneven housing market. September data show statewide declines in closed sales for both single-family homes and condominiums, while median prices and market conditions varied considerably by island.

The national average for a 30-year fixed mortgage reached 7.40% in early October before easing to 7.18% on November 5, according to Freddie Mac. Although rates have moved down from their October peak, borrowing costs remain a major affordability consideration for households looking to buy a home.

Key Takeaways

• Mortgage payments have risen substantially: Zillow analysis cited by Honolulu Civil Beat estimated that the monthly principal and interest payment for a typical Honolulu home purchase increased from $2,401 in September 2019 to $4,493 in September 2026.
• Statewide sales declined: September single-family home sales fell 7.9% year over year, while condominium sales declined 6.7%.
• Prices varied by island: Oʻahu’s single-family median price declined, while its condominium median increased. Other counties recorded different price and sales trends.
• Inventory conditions are changing: More available listings in some areas may provide buyers with additional choices and negotiating opportunities.
• Local market conditions matter: Hawaiʻi’s housing market cannot be described by one statewide trend because prices, demand and sales activity differ across counties and property types.

Rising Mortgage Costs Make Homeownership More Difficult

Mortgage rates have a direct effect on how much buyers pay each month. When interest rates rise, a buyer financing the same home price generally faces a higher principal and interest payment, even if the property’s price has not changed.

In Honolulu, Zillow analysis cited by Honolulu Civil Beat estimated that the monthly principal and interest payment associated with a typical home purchase increased from $2,401 in September 2019 to $4,493 in September 2026—an increase of approximately 87%.

These figures illustrate the effect of changing home prices and financing costs over time. They do not represent a guaranteed payment for every buyer, and actual mortgage costs depend on the purchase price, down payment, loan terms, credit profile, taxes, insurance and other expenses.

For first-time buyers and households with limited budgets, the combination of Hawaiʻi’s high home prices and elevated borrowing costs can make qualifying for a mortgage more challenging.

Statewide Home Sales Show Signs of Pressure

Hawaiʻi’s September 2026 housing data showed fewer closed transactions than a year earlier.

Statewide single-family home sales declined 7.9% year over year, while condominium sales fell 6.7%. However, the results differed across counties. On Oʻahu, for example, single-family home sales increased 6.2% year over year, even as condominium sales declined 8.1%.

This contrast highlights why statewide figures need to be considered alongside local data. A decline in overall statewide sales does not necessarily mean activity is falling in every community or property category.

Changes in sales volume can reflect several factors, including mortgage affordability, the number of available properties, buyer expectations and the timing of completed transactions.

Island-by-Island Housing Trends

September results show a varied picture across Hawaiʻi’s four main county housing markets.

Oʻahu

Oʻahu’s single-family median sale price was $1,110,000 in September, down 3.9% from a year earlier. The condominium median increased 2.8% to $523,000.

Single-family sales rose 6.2% year over year to 293 transactions, while condominium sales declined 8.1% to 375. Active condominium inventory was also higher than a year earlier, giving prospective buyers more options in that segment.

Maui County

Maui County’s single-family median sale price was $1,150,000, down approximately 11% year over year. Condominium sales increased substantially, rising 56.5% compared with September 2025.

The difference between single-family and condominium activity shows that demand can vary considerably even within the same county.

Hawaiʻi County (Big Island)

The single-family median sale price in Hawaiʻi County was $499,000, down approximately 14.6% year over year. Single-family sales fell about 21.4%, while condominium sales declined approximately 34.7%.

These figures point to softer transaction activity in September, although one month of data cannot establish the long-term direction of the local market.

Kauaʻi County

Kauaʻi County recorded a single-family median sale price of $1,490,000, up approximately 11.2% year over year. However, only 18 single-family homes sold during September.

Because the monthly number of transactions was small, the median price should be interpreted cautiously. A small number of high- or lower-priced sales can have a noticeable effect on the reported median.

Inventory and Negotiating Power

More available homes can give buyers additional choices and may encourage sellers to compete on price, property condition or other terms. In some Hawaiʻi communities, increased inventory and longer selling timelines have created opportunities for buyers to negotiate.

However, a higher number of listings does not automatically mean that every market favors buyers. Well-priced homes in desirable locations may continue to attract strong interest, while other properties may require price adjustments or more time to sell.

Buyers should compare recent sales and current listings in the specific neighborhood and property category they are considering. Sellers should use the same local evidence when setting asking prices and preparing for negotiations.

What This Means for Buyers, Sellers and Property Owners

For buyers: Review your total monthly housing budget before making an offer. Obtain mortgage preapproval, compare loan options and account for property taxes, insurance, maintenance and any condominium or association fees. Assistance programs may be available, depending on eligibility and location.

For sellers: Pricing should reflect recent comparable sales, current competition and the condition of the property. In a market where buyers are sensitive to affordability, realistic pricing and flexibility during negotiations may help attract qualified purchasers.

For homeowners: Changes in median sale prices do not automatically determine the value of an individual property. Local comparable sales, property condition, location and other characteristics remain important.

For property managers and investors: Monitor local sales, rental demand, operating expenses and financing conditions. Rising borrowing costs can affect investment returns, while changes in inventory and buyer demand may create different opportunities from one island to another.

What to Watch in the Coming Months

Mortgage rates, new listings, pending sales and completed transactions will help indicate whether Hawaiʻi’s housing market is stabilizing or experiencing further pressure.

Buyers and sellers should also monitor county-level reports rather than relying exclusively on national housing headlines. Hawaiʻi’s geographic differences and relatively small transaction volumes in some areas can produce market movements that differ from national trends.

Practical Takeaway

Hawaiʻi’s housing market is facing a combination of elevated financing costs and declining statewide home sales, but conditions vary significantly across the islands. September data show that some prices have declined while others have increased, and certain property types continue to perform differently from others.

For buyers, careful budgeting and local market research remain essential. Sellers should pay close attention to comparable sales and pricing, while homeowners, property managers and investors should evaluate decisions based on local conditions rather than assuming that the entire state is moving in one direction.

This article is for general informational purposes only and does not constitute legal, mortgage, financial or investment advice.