Can You Afford the Cost of Living in Hawaii?
Choosing to move to Maui in the state of Hawaii can be exciting and maybe a little stressful or even scary when considering that Hawaii has the highest cost of living of all of the United States. Some may ask if they will be able to afford living here and if it is a sound real estate investment to purchase a home on Maui island where the cost of living is higher than in other locations.
An Honest Look into the cost of living in Hawaii
What to expect for the cost of food
Ninety percent of the food you will find in grocery stores and restaurants is imported from other areas to the islands. Because of the unique delivery demands for acquiring food to the island the prices are higher than you'll find anywhere else. But many residents of Hawaii find creative ways around this higher cost of living. Some take advantage of the perfect weather for growing several different kinds of produce with their own backyard gardens. The Maui farmers market is also amazing.
House costs and local taxes
To be completely truthful and not holding anything back, residents in Hawaii pay the most taxes as compared to any other state in the United States. Housing costs in Hawaii are also some of the most expensive. But there is a reason for these higher costs. Living in a beautiful location with a limited amount of land on islands in the middle of the ocean plays a big role in these costs.
Considering the cost of utilities
State legislators banned the use of coal for energy on the islands and this law went into effect very recently in September 2022. 40% of the electricity produced in Hawaii already comes from renewable energy which is great news. The state has also chosen to use oil instead of coal to provide the other 60% of electricity consumed by Hawaii. Unfortunately, this means they have chosen the most expensive form of energy over the cheapest costing fossil fuel. This means a higher cost in utility bills.
Is Purchasing Real Estate in Maui a Good Investment?
The answer to this question really depends upon what you as a buyer would like out of your next home. For those that live on the island of Maui if you ask them if purchasing a home in Maui was worth the investment, a majority of them will quickly say yes without any hesitation. There are so many benefits to living on the island of Maui that the higher cost of living pales in comparison to the many benefits of living in paradise.
Living on Maui offers a lifestyle like no other and there are so many activities that you can enjoy on the island that are fairly inexpensive or free. Living in a climate that allows you to be outside the majority of the time means that you are able to find activities to keep you entertained, busy, and happy without forking over the cost of a ticket or a rental fee. Some activities may come with a small initial upfront cost of buying a piece of equipment like a surfboard but are relatively low cost as compared to heading to an indoor activity.
For more information on real estate on the island of Maui and other areas of Maui county please contact us anytime.
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