Which island is best for Hawaii luxury real estate?

While there are thousands of islands in Hawaii, there are four main islands that the vast majority of Hawaii residents call home: Oahu, Hawaii Island (the “Big Island”), Maui and Kauai. And, these are the islands where the Hawaii luxury real estate market has boomed.

The Hawaiian Island that is best for the luxury home buyer depends on the clients’ needs and desires – with each island having its distinct appeal for the discerning buyer.

Oahu

Oahu is Hawaii’s most populous island, and the city of Honolulu serves as Hawaii’s capital. The Oahu luxury real estate market is the most robust, having the most high-end home sales in 2022 at 224 sales above $3 million; 14 of those sales were above $10 million. Oahu neighborhoods with the most luxury home sales in 2022 included Honolulu, Lanikai/Kailua, Kahala, Diamond Head, Hawaii Kai and the North Shore (Laie, Kuilima, Pupukea, Haleiwa and Mokuleia). The average sales price per square foot on Oahu was $1,401 in 2022, according to MLS data.

Luxury homebuyers are often attracted to Oahu real estate for its luxury condominium options, prestigious private school options, and easy access to the Honolulu international airport, high-end shopping centers and highly rated medical centers and physicians. Luxury buyers are advised to buy in Oahu if they want to be closer to medical specialists. Oahu offers the conveniences of an urban environment but also continues to retain Hawaii’s natural appeal with worldclass surf breaks, picturesque landscapes and secluded spots to explore.

Hawaii Island (the “Big Island”)

Hawaii Island is not only home to two of the world’s most active volcanos – Kilauea and Maunaloa – but it also offers Hawaii luxury homebuyers the opportunity to purchase huge homes on large, private lots of land.

In 2022, Hawaii Island had 157 sales above $3 million, with 16 of those sales over $10 million. Kailua-Kona and South Kohala/Waimea are the Hawaii Island neighborhoods where most luxury real estate transactions occur. The average sales price per square foot on Hawaii Island was $1,912 in 2022, according to MLS data.

Luxury homebuyers who are attracted to Hawaii Island typically like new construction and remoteness. In fact, land sales on Hawaii Island outpace land sales on any other island; to get an idea, an 1,834-acre parcel of land sold for $4.69 million in November 2022. While the remote Big Island often requires residents to hop on a plane to Honolulu for medical visits or high-end shopping or eating experiences, modern Hawaii homes with extensive upgrades and amenities – and exclusive privacy – often hit the Big Island luxury real estate market.

Maui

Maui has always attracted Hawaii luxury homebuyers – as well as affluent tourists. However, due to the recent, recurring fires in some of Maui’s luxury neighborhoods, including the West coasts towns of Lahaina, Kaanapali and Kapalua and upcountry’s town of Kula, it is difficult to determine the future viability of the Maui luxury real estate market.

In 2022, Maui had 184 sales above $3, including 13 land sales and 20 sales above $10 million. In addition to the previously mentioned neighborhoods, the neighborhood of Wailea Makena saw the vast majority of Maui’s luxury home sales in 2022. The average sales price per square foot on Maui was $2,059 in 2022, according to MLS data.

Many luxury homebuyers are attracted to a property on Maui for the ability to purchase turnkey, newly constructed homes with all their desired amenities and finishes. Also, like Hawaii Island, many Maui homeowners find that they frequently travel to Oahu for medical appointments. However, in the past years, Maui had added more high-end restaurants and shopping options for luxury home residents to enjoy.

Kauai

Kauai is known for its lush environment on an intimate island with an “old Hawaii” feel. In 2022, Kauai had 87 sales above $3 million; and, 13 of those sales were above $10 million, reflecting Kauai’s typically high dollar transaction amount as compared to other islands. Kauai luxury real estate sales are most frequently in the neighborhood of Koloa, with Kauai’s North Shore (Hanalei, Princeville, Anini and Kilauea) also seeing a large share of luxury home sales. The average sales price per square foot on Kauai was $2,407 in 2022, according to MLS data.

Luxury buyers often decide to purchase property on Kauai for its natural appeal and because it is one of the world’s rarest housing markets. (Only 3% of the island’s 550-square miles are available for development.) The ability to work remotely and be surround by Kauai’s world-class surf breaks and natural beauty also attract affluent buyers from around the world to the remote island.

Which Hawaiian Island is right for you? The answer to this depends on the luxury homebuyer’s desires – with discerning high-end Hawaii homebuyers choosing homes on each of the most populated Hawaii islands.

When deciding which island to purchase a home, many might look to celebrities who reside in Hawaii. While many luxury Hawaii real estate purchases are done off-the-market to ensure privacy and confidentiality, it is known that many high-profile clientele and celebrities have purchased a luxury Hawaii house. Hawaii has always been a destination for affluent tourists to enjoy paradise, but many have also decided to also permanently dwell in paradise – often owning an additional residence in the islands.