06/17/2026
BIG ISLAND REAL ESTATE MARKET UPDATE, June 2026
The Hawaiʻi Island real estate market continues its transition toward a more balanced environment. Inventory levels have increased compared to the highly competitive years of 2021–2023, giving buyers more choices and reducing the urgency that characterized the post-pandemic market.
At the same time, prices have generally remained stable, particularly in desirable West Hawaiʻi and luxury markets. The result is a market where negotiation, property condition, and pricing strategy matter more than they have in several years.
This is not a distressed market. Rather, it is a more normalized market that rewards informed buyers, realistic sellers, and thoughtful decision-making.
ISLANDWIDE TRENDS
1) Inventory Has Expanded
Buyers now have more options across most price ranges and property types. Increased inventory has reduced competitive bidding pressure and given purchasers more time for due diligence and comparison shopping.
2) Marketing Times Have Lengthened
Properties generally remain on the market longer than they did during the peak seller-market years. Buyers are taking additional time to evaluate value, condition, insurance costs, HOA fees, and long-term ownership expenses.
3) Pricing Accuracy Matters More Than Ever
Well-priced properties continue to attract interest and sell. Overpriced properties frequently experience longer marketing periods, price reductions, or withdrawal from the market.
4) Buyer Behavior Has Changed
Today's buyers are analytical and selective. Inspection contingencies, financing contingencies, and negotiations have become normal components of transactions once again.
5) The Market Is Increasingly Segmented
There is no single "Big Island market." Conditions vary significantly by location, price point, property type, and intended use. Resort-area properties, luxury homes, primary residences, investment properties, and condominiums are often experiencing different levels of demand and market activity.
REGIONAL OVERVIEW
North Kona
North Kona remains one of the island's most active markets due to its climate, amenities, employment base, and visitor appeal.
Demand remains strongest for:
• Move-in-ready homes
• Ocean-view properties
• Well-maintained condominiums
• Properties with legal short-term rental potential
While buyers have more choices than in recent years, desirable properties that are priced appropriately continue to attract strong interest.
South Kohala
South Kohala and the resort markets continue to attract affluent mainland and international buyers.
Luxury demand remains healthy, although transaction timelines are often longer as buyers carefully evaluate opportunities. High-end properties continue to command strong prices when properly positioned and marketed.
Lifestyle, location, views, privacy, and resort amenities remain powerful drivers of value in this market segment.
Hilo
Hilo remains driven primarily by local and resident demand rather than resort activity.
Affordability relative to West Hawaiʻi continues to attract buyers seeking primary residences and long-term investment opportunities. Property condition, flood-zone considerations, and insurance costs remain important factors in purchasing decisions.
Puna
Puna continues to attract value-oriented buyers seeking larger parcels, affordability, and lifestyle flexibility.
Inventory provides substantial choice for purchasers, though financing, insurance, lava-zone considerations, and property-specific infrastructure remain important transaction variables.
HOMES vs. CONDOMINIUMS
Single-Family Homes
Single-family homes remain the strongest-performing broad market segment.
Properties that are well maintained, updated, and appropriately priced continue to generate buyer interest. Homes requiring substantial deferred maintenance face greater competition and longer marketing times.
Condominiums
The condominium market remains the segment offering the greatest negotiating leverage for buyers.
Higher inventory levels, increasing operating costs, insurance concerns, and changing vacation-rental economics have made buyers more selective. Marketing times are generally longer than for comparable single-family homes, and purchasers are paying closer attention to HOA financial health, reserve funding, insurance coverage, and future assessments.
Well-managed complexes and units with desirable locations continue to outperform the broader condominium market.
GUIDANCE FOR SELLERS
• Price according to current market conditions rather than past peak sales.
• Invest in presentation, photography, and property preparation.
• Expect buyers to conduct thorough due diligence.
• Respond promptly to market feedback and showing activity.
• Recognize that today's market rewards realistic pricing from the outset.
GUIDANCE FOR BUYERS
• Increased inventory creates more negotiating opportunities.
• Conduct thorough inspections and review insurance and HOA information carefully.
• Strong properties still require timely action.
• Focus on long-term suitability rather than short-term market timing.
• Take advantage of the ability to compare more options before making a decision.
GUIDANCE FOR INVESTORS
• Analyze cash-flow assumptions conservatively.
• Review HOA reserves, insurance exposure, and maintenance obligations carefully.
• Favor properties with durable demand drivers and strong location fundamentals.
• Evaluate regulatory, tax, and operating-cost trends alongside potential appreciation.
BOTTOM LINE
The Big Island market in mid-2026 is best characterized as stable, segmented, and increasingly strategic.
Buyers generally have more choices and more negotiating power than they did several years ago, while sellers who price accurately and present their properties well continue to achieve successful outcomes.
The extraordinary seller advantages of the pandemic era have largely subsided, but demand remains healthy for desirable properties. Success today depends less on market momentum and more on property-specific fundamentals, accurate pricing, and informed decision-making.
As always, real estate remains highly local. Market conditions can vary significantly from one neighborhood, subdivision, or resort community to another, making local knowledge and current data more important than ever.
NOTE: While this report summarizes islandwide trends, conditions in North Kona and South Kohala remain notably stronger than many national markets and continue to benefit from limited developable land, lifestyle appeal, and sustained buyer interest.
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