Is Living in Hawaii Expensive? A Complete Guide

Yes, the cost of living in Hawaii can be unexpectedly high. Many dream of escaping busy cities and harsh winters for warm breezes and island views of Hawaii. But the transition comes with financial challenges.

This article will explore the major factors that make Hawaii one of the most expensive places to live. It will provide an overview of housing, everyday expenses, and other costs that can quickly add up. You will also gain insight into how these costs compare to the national average.

Whether you are considering retirement, relocating for work, or starting a new life with your family, this guide will help you understand the financial realities of living in Hawaii. It will outline practical ways to manage expenses and make informed decisions before making the move.

What You’ll Learn in This Guide

Coming up in this post, we will answer important questions:

• What does the actual cost of living in Hawaii look like? 

• Why are prices in Hawaii higher than on the mainland? 

• What factors contribute to the rise in these prices?

Overview

Hawaii Living Expenses 2025 Guide

Hawaii’s cost of living index is 193.3, the highest in the nation, meaning the cost of living in the state is almost twice the national average. The state is also the most expensive in the U.S. across all metrics except healthcare. Despite the high cost of living, however, Hawaii has one of the country’s lowest poverty rates.

In comparison to the national average of 100.0, here is a detailed breakdown of the average living cost in Hawaii:

• Groceries: 152.9

• Housing: 315

• Utilities: 164.2

• Transportation: 133.7

• Health: 115.3

• Miscellaneous: 126.7

Understanding the various factors that contribute to Hawaii’s high cost of living is crucial for effective financial management, especially for those living on a budget.

Housing Costs in Hawaii

Housing is the most considerable expense in Hawaii due to high demand from its remote location and limited land. This results in costs that exceed the national average for both renting and buying.

Renting in Hawaii

For those looking to rent, expect to pay a premium, particularly in popular areas like Honolulu, where housing demand is high.

• Average Rent: Rent in Hawaii is about 52% higher than the national average. The statewide average across all property types is $3,188, compared to $2,100 nationally.

• Suburban vs. Urban: In urban areas such as Honolulu, rent is higher due to proximity to jobs, nightlife, and amenities. In more suburban or rural parts of the islands, rents may be lower, but access to services can be limited, which could add to your transportation costs.

Buying a Home in Hawaii

For those looking to buy, the real estate market in Hawaii is competitive. Many people are attracted to Hawaii because of its beautiful island life. However, there is limited space for new buildings. This keeps demand high and the number of available properties low, especially in popular areas.

• Median Home Price: The average Hawaii home value is $833,984. Honolulu properties cost $761,755, while prices can go as high as $1,066,622 in Waimanalo. Condos average about $734,000, making them a relatively more affordable option.

• Property Taxes: Interestingly, Hawaii has some of the lowest property taxes in the United States. Hawaii has a property tax rate of 0.27%. This helps offset the high purchase prices. 

Transportation Costs

Transportation in Hawaii is more expensive than on the mainland due to its geographical isolation. This affects both the cost of vehicle ownership and public transportation options.

Car Ownership

Owning a car in Hawaii is almost a necessity, particularly in the Big Island, Maui, and Kauai, where public transportation is limited. However, owning a car in Hawaii is expensive due to several factors:

• Gas Prices: Hawaii consistently has some of the highest gas prices in the nation, often exceeding $4 per gallon. This is due to the cost of importing fuel, which impacts everyday expenses for commuters and residents.

• Car Maintenance: Car maintenance costs are higher in Hawaii. They are about 12% higher than the national average. The state's geographic isolation makes shipping replacement parts more expensive. This leads to higher operating costs for businesses, which also results in higher labor rates for mechanics.

• Car Shipping: For those moving to Hawaii and planning to ship their vehicle from the mainland, the cost can range between $1,000 and $1,500. This cost depends on the shipping method, the distance, and the port of departure.

Pro Tip: AmeriFreight Auto Transport offers affordable auto shipping services across the mainland. Use our car shipping cost calculator for cheap auto transport rates.

Public Transportation

For people living in Oahu, public transportation is a good and affordable choice. This is especially true in Honolulu, where the bus system is strong and easy to use. However, public transportation is limited on other islands.

• Bus Services: Oahu has a public bus network called "TheBus," with a monthly pass costing about $70. It is a cost-effective option for urban residents who rely on public transport. However, public transportation is limited outside Oahu. This results in Hawaii experiencing a high degree of car dependency.

• Biking and Walking: Hawaii's warm, tropical climate makes biking and walking good options for people in urban areas. Honolulu is adding more bike lanes and paths for pedestrians, which makes it easier to get around without a car. For those who live close to their jobs or schools, this can save on transportation costs.

Food and Grocery Prices

Hawaii's remote location means it imports much of its food. This increases grocery costs, making it one of the most expensive states for food.

Grocery Prices

Local produce, meat, and dairy tend to be more affordable, but imported items can be costly. Here’s a sample cost of common goods:

• Milk: A gallon of milk can range from $6 to $8, which is significantly higher than the national average, which is between $3 and $5. This is due to the cost of shipping dairy products from the mainland.

• Bread: The price of bread in Hawaii is usually higher than on the mainland. You can expect to pay between $4.99 and $13 or more for a loaf. The price depends on the type of bread, where you buy it, and any discounts available.

• Fresh Produce: Fruits and vegetables that are not grown locally tend to be expensive. Local produce, like papayas, bananas, and pineapples, is usually cheaper at farmers' markets. However, imported fruits, such as apples, berries, and avocados, often come with a high price.

Dining Out

Eating out is also expensive in Hawaii. Restaurant prices reflect both the high cost of imported goods and the state’s booming tourism industry.

• Restaurant Meals: A restaurant meal in Hawaii can range from $8 to $55 or more per person, depending on the type of meal and restaurant. Gourmet meals can cost $25 to $55 or even more. In tourist-heavy areas such as Waikiki, expect to pay even more for dining.

• Local Markets: One way to reduce your grocery bills is by shopping at local farmers' markets. These markets offer locally grown produce at lower prices. Many residents take advantage of farmers' markets to buy affordable tropical fruits, vegetables, and homemade goods.

Utilities and Energy Costs

Hawaii has some of the highest energy costs in the country because it uses imported oil to make electricity. To tackle this problem, the state is trying to use more renewable energy sources like solar power, wind energy, and hydropower.

Monthly Utility Costs

The average monthly utility cost in Hawaii for a single person or a couple living in a small home or condo is about $475. This cost includes electricity, water, sewer, and gas. This is still higher than the national average of around $400 for homeowners. 

Here’s a detailed breakdown:

• Electricity: Hawaii has the highest average electricity rates in the United States, at 41.03 cents per kilowatt-hour (kWh). The average monthly electricity bill for a residential customer in Hawaii is around $203. Hawaii's sunny weather means many people need air conditioning, especially during the hot months. This can increase electricity costs.

• Water and Sewer: The average monthly water bill in Hawaii typically falls within the range of $110 to $150. While water bills are usually reasonable, residents should also pay attention to sewer fees. These fees can change based on how much water you use and where you live.

Renewable Energy

Hawaii is working to use more renewable energy sources to reduce electricity costs. Solar power is becoming more popular because of Hawaii’s abundant sunshine and state incentives.

• Solar Power: Hawaii continues to be a strong market for solar power installations, with both residential and utility-scale projects underway. The state offers incentives to encourage renewable energy adoption. It offers a Renewable Energy Technologies Income Tax Credit (RETITC) for solar PV, solar space heating, and solar thermal water heating systems.

Healthcare Costs

Hawaii has the best healthcare in the U.S., according to U.S. News & World Report. The quality of care is generally high, but health services can be costly. This can increase your monthly expenses, especially if you do not have a health plan from your employer.

Health Insurance

Health insurance premiums in Hawaii are comparable to the national average, but out-of-pocket costs for medical services can be high for those without comprehensive coverage.

• Insurance Costs: Hawaii has a strong health insurance market. The state's Prepaid Health Care Act requires employers to provide health insurance for full-time employees. For people who are self-employed or do not have insurance from an employer, premiums can differ depending on the plan and coverage level.

• Medical Services: Doctor visits, dental care, and prescription medications can be costly. While routine care can be affordable, specialized treatments or emergency care can lead to high out-of-pocket expenses if you don't have good coverage.

Education and Schooling

Education is a key factor for families moving to Hawaii. While public schools are available, their quality varies by location. Many families also choose private schools, which can increase living expenses.

Public Schools

Hawaii has a single public school system managed by the Hawaii Department of Education. Public schools are free, but families may still need to pay for supplies, uniforms, and extracurricular activities.

• Quality of Education: The quality of public education in Hawaii varies significantly. Schools in wealthier areas usually have more resources, while schools in low-income or rural areas often struggle with funding and facilities. If you have children in school, it’s important to research the schools in the area you’re considering.

• School Supplies and Fees: Public education is free, but families often spend hundreds of dollars each year on school supplies, uniforms, field trips, and extracurricular activities. Some public schools also charge extra fees for sports, music programs, or special events.

Here are seven of the best public schools in Hawaii for 2025:

1. Mililani High School: A large, community-focused school in Mililani Town, HI, serving 2,432 students with a diverse culture and a 16:1 student-teacher ratio (Niche Grade: A).
   
   

2. University Laboratory School: A small K-12 school in Honolulu, HI, offering a unique learning environment for 446 students with a 12:1 student-teacher ratio (Niche Grade: A).
   
   

3. Moanalua High School: A highly rated school in Honolulu, HI, known for strong academics and vibrant student life, with 1,933 students and a 16:1 student-teacher ratio (Niche Grade: A).
   
   

4. Waiakea High School: Located in Hilo, HI, this school of 1,217 students fosters strong community ties and culture with a 16:1 student-teacher ratio (Niche Grade: A).
   
   

5. Hawai'i Technology Academy Public Charter School: A K-12 public charter school across Hawaii, recognized for its innovative approach to education (Niche Grade: A).
   
   

6. Kalani High School: A Honolulu, HI school with strong academic programs and over 1,200 students (Niche Grade: A).
   
   

7. President Theodore Roosevelt High School: A respected public high school in Honolulu, HI, recognized for overall quality (Niche Grade: A).

Private Schools

Many families in Hawaii opt for private schools due to their reputation for higher academic standards. The cost of private schooling in Hawaii includes:

• Private School Tuition: The average tuition for private schools in Hawaii is $15,812 per year as of 2025. For private elementary schools, the average yearly tuition is $15,602. For private high schools, the average annual tuition is $18,241.

• Financial Aid and Scholarships: While private school tuition is expensive, many schools offer financial aid and scholarships to help offset the cost. Families should research available aid programs and apply early to secure assistance.

Entertainment and Leisure

Living in Hawaii offers a variety of experiences. You can find many free and paid activities to fit different lifestyles. Free options include swimming at beautiful beaches and attending community events like festivals and hula performances. Cultural heritage is highlighted in Hawaii's museums. The Bishop Museum, 'Iolani Palace, and the Pearl Harbor National Memorial are among the most visited.

For more adventure, you can pay for activities like surfing lessons, scuba diving, zip-lining, and helicopter tours. Dining and nightlife in popular areas like Waikiki or Lahaina can be exciting, but they are often more expensive. Indoor fitness options, such as gyms and classes, tend to be costly, so many residents choose to stay active outdoors in parks, on beaches, or through community fitness groups.

Best Outdoor Activities For Residents In Hawaii

Here are some fun activities to do in Hawaii:

• Hiking: Explore trails from lush rainforests to volcanic craters, including Diamond Head, Kalalau Trail, and Kīlauea Iki Trail.

• Beach Activities: Swim, sunbathe, or relax on Hawaii’s world-famous public beaches.

• Snorkeling and Scuba Diving: Discover marine life at Hanauma Bay, Kahaluu Beach Park, and Napili Bay

• Surfing: Ride beginner-friendly waves at Waikiki or tackle expert breaks on Oahu’s North Shore.

• Stand-Up Paddleboarding (SUP) and Kayaking: Paddle in calm bays and to offshore islands like Kailua Beach.

• Whale Watching: Spot humpback whales in winter from shore or on boat tours.

• Fishing: Enjoy deep-sea fishing, especially for billfish in Kona.

• National and State Parks: Visit Hawai‘i Volcanoes, Haleakalā, and Waimea Canyon for iconic scenery and experiences.

• Scenic Drives: Take the Road to Hana, explore the Kohala Coast, or tour Kauai’s North Shore.

• Stargazing: View spectacular night skies at the Mauna Kea Visitor Center.

• Wildlife Watching: See sea turtles, dolphins, and Hawaiian monk seals in their natural habitats.

• Cultural Events: Join hula shows, lei-making classes, and farmers’ markets for authentic Hawaiian culture.

Cost of Living for Retirees

Retirees in Hawaii face the same high living expenses as working residents, including housing, food, and utilities. However, retirees may benefit from certain tax advantages and retirement benefits.

• Social Security Benefits: Hawaii does not tax Social Security income, which can provide a slight financial advantage for retirees. However, other forms of retirement income, such as pensions or 401(k) withdrawals, may be subject to state taxes.

• Housing Costs: Retirees who own their homes might find it easier to live in Hawaii. They don’t have to pay high rents or mortgage payments. However, they still need to consider the costs of property maintenance and insurance, especially in areas that often face natural disasters.

• Healthcare: Access to quality healthcare is very important for retirees. Hawaii has great healthcare services, but out-of-pocket costs can be high. Retirees should plan for medical expenses. This includes Medicare premiums, prescription costs, and long-term care services.

Retirement Communities

Hawaii has many retirement communities for older adults who want a relaxed, tropical lifestyle. These communities include options for independent living and assisted living. They often offer amenities like social activities, transportation, and on-site healthcare services.

• Costs of Retirement Communities: Retirement community costs in Hawaii are much higher than the national average. Monthly fees for independent living range from $4,795 to $5,186, depending on the level of care and services you need. Retirees need to research these communities carefully and decide if they can afford these costs with their retirement income.

Cost of Living in Hawaii 2025 Breakdown

Here’s a comprehensive table of the cost of living in Hawaii in 2025.

Employment and Income

Hawaii’s job market relies primarily on tourism, agriculture, and government jobs. Due to the high cost of living, many residents must earn more than the national average to live comfortably.

Job Opportunities

• Tourism Jobs: Hawaii's economy relies heavily on tourism. In 2023, tourism contributed approximately $17.8 billion to Hawaii's economy and supported 216,000 jobs. This represents about a quarter of the state's overall economy. The industry is the largest employer in the state, providing jobs for many people. It includes a range of positions, from entry-level jobs to management and specialized roles.

• Government Employment: Hawaii’s government is one of the biggest employers in the state. It offers jobs in education, law enforcement, and health care. The Workforce Development Division (WDD) in Hawaii is part of the State Department of Labor and Industrial Relations (DLIR). It helps create jobs by developing a skilled workforce and connecting people with job opportunities. 

• Remote Work: More people are working from home, allowing some residents in Hawaii to work for companies on the mainland while enjoying life in the islands. Remote work provides flexibility and the chance to earn higher salaries. 

Average Income

Hawaii has a high cost of living, and wages often do not keep up with these rising expenses. The median household income in Hawaii is slightly above the national average, but considering the cost of living, residents have much less purchasing power.

• Average Salary in Hawaii: In 2024, Hawaii’s average household income was $128,123, which is about 16% higher than the U.S. average. Meanwhile, the median household income reached $98,317, standing 25% above the national median.

• Minimum Wage: In 2024, Hawaii raised its minimum wage to $14.00 per hour. However, living costs in Hawaii, especially in Honolulu, are very high. This means that people need more than the minimum wage to live comfortably.

Highest-Paying Jobs in Hawaii 2025

For individuals relocating to Hawaii, here is a list of the highest-paying jobs in Hawaii for 2025:

• Medical Specialists: Physicians and surgeons across various fields (e.g., Anesthesiologists, Cardiologists, Neurologists, Surgeons) consistently earn the highest salaries, often exceeding $239,200 annually. Some specialists can earn over $400,000.

• Technology & IT Professionals:

• Cloud Architects & Machine Learning Engineers: These roles can command $160,000 to over $200,000 annually.

• Data Scientists & Network Security Engineers: Salaries generally range from $120,000 to over $160,000 per year.

• Senior Executives & Managers: Top leadership positions, like Chief Executives and Presidents/CEOs, can earn average salaries of $197,000 to $289,000+ annually.

• Specialized Engineers:

• Graduate Pipeline and Aerospace Engineers: These professions typically see salaries around $121,000 to $144,000 annually.

• Senior Civil Engineers (specialized fields): Can earn over $103,000 per year, especially in niche areas like BIM or Structural Engineering.

• Advanced Practice Nurses:

• Nurse Practitioners & Physician Assistants: These roles generally offer salaries over $126,000 annually.

• Pharmacists: This healthcare profession typically pays between $124,000 and $153,000 annually.

• Financial Planners: Top earners in this field can make over $131,000 annually.

Note: Actual salaries may differ based on experience, company, location, and economic conditions in Hawaii.

Pros and Cons of Living in Hawaii

Here’s a comparison of the advantages and disadvantages of living in Hawaii beyond the financial aspects.

Pros of Living in Hawaii:

• Exceptional Natural Beauty: Pristine beaches, lush rainforests, and stunning volcanic landscapes are part of daily life.

• Ideal Climate: Consistent mild temperatures year-round enable continuous outdoor activities.

• Abundant Outdoor Activities: World-class surfing, snorkeling, hiking, and paddleboarding are readily accessible.

• Healthy Lifestyle Promotion: The pleasant climate and fresh local produce support an active and healthy lifestyle.

• Rich Cultural Diversity and Aloha Spirit: A welcoming community emphasizes kindness, compassion, and respect.

• Slower Pace of Life: Daily life often feels more relaxed and less materialistic.

• Safety (General Crime): Hawaii typically has lower general crime rates than the mainland.

• Well-Developed Disaster Preparedness Infrastructure: The state has comprehensive systems, including early warning sirens, clear evacuation zones, and educational campaigns (like "2 Weeks Ready"). This helps residents prepare.

• Community Resilience & Support During Disasters: A strong sense of community often leads to robust local support networks during and after natural events.

Cons of Living in Hawaii:

• Isolation and Travel Challenges: The remote location results in long, expensive flights for off-island travel, which impacts family connections.

• "Island Time" and Pace of Services: Services and repairs can take longer due to a more relaxed pace and limited resources.

• Limited Variety (Goods/Services): Fewer options for specific goods or specialized services compared to the mainland. Shipping is often slow.

• Traffic Congestion: Major urban areas like Honolulu experience significant traffic due to limited infrastructure.

• Environmental Factors (Humidity/Rust): High humidity is common, accelerating rust on vehicles and metal items.

• Limited Seasons: Some may miss distinct seasonal changes.

• Overcrowding: Popular tourist areas can be very crowded.

• Risk of Natural Disasters: Hawaii is prone to hurricanes, tsunamis, volcanic activity (Big Island), earthquakes, and flash floods. This requires constant vigilance.

What time is it in Hawaii?

(Clock from the published article)

Final Thoughts: Balancing Paradise and Price

Living in Hawaii can feel like a dream because of its beautiful scenery, warm climate, and rich culture. However, it can be expensive. Housing and grocery prices are high, and there are few job opportunities outside the primary industries. 

With careful planning and smart budgeting, you can live comfortably in Hawaii. Cooking at home, taking advantage of free outdoor activities, and visiting cheaper islands can help you save money. Overall, Hawaii offers an excellent quality of life for those who can manage the cost of living in paradise.

Frequently Asked Questions (FAQs)

How much money do you need to live comfortably in Hawaii?

To live comfortably in Hawaii, a single adult typically needs to earn around $70,000 to $124,467 annually, while a four-person family generally requires $120,000 to $294,362 per year.

Can I live in Hawaii on $3,000 a month?

You likely cannot live comfortably in Hawaii on an income of $3,000 a month, as the estimated required annual income for a single adult to cover basic living expenses (excluding taxes) is approximately $50,709.

Can Hawaii be affordable to live in?

Hawaii is never cheap, but it can be more affordable by living on less expensive islands such as the Big Island, having roommates to split rent, and adopting a local lifestyle of cooking at home and enjoying free outdoor activities.

What is the downside of living in Hawaii?

Living in Hawaii has some downsides. The biggest issue is Hawaii’s geography. The state's isolation affects travel and makes goods and services more expensive. There is also significant traffic congestion. It can be hard to fully integrate into the local culture, and there is always a risk of natural disasters.

Why is Hawaii so expensive to live in?

Hawaii is so expensive because about 90% of everything, including food and fuel, has to be imported from the other side of the Pacific. Plus, the high demand for limited housing drives up the cost of almost everything.

Is Hawaii worth moving to?

Moving to Hawaii is worth it if you can get a high-paying job and prioritize the outdoor lifestyle over material wealth. But not worth it if you’re on a tight budget or need diverse career opportunities.

What do people do for work in Hawaii?

Most jobs in Hawaii are in tourism and hospitality, the US military and government, and essential services like healthcare and retail.

What salary do I need to live in Hawaii?

To live in Hawaii, a single person should aim for at least $65,000 a year for a basic existence, over $124,000 to live comfortably.

What is the average salary in Hawaii?

The average salary in Hawaii is about $52,828 per year. However, this amount can vary significantly depending on the industry, level of experience, and location within the state.Some reports indicate that certain high-ranking jobs can average around $127,170 annually.

Disclaimer: This guide is for general information only. Costs, salaries, and tax details are based on current data and may change over time. It is not financial, investment, or legal advice. Before making decisions about living in Hawaii, consult a qualified financial advisor, tax professional, or legal expert.