Cost of Living in Hawaii 2023 Guide: Income & Expenses

Cost of Living in Hawaii 2023 Guide: Income & Expenses

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July 14, 2023
Cost of Living in Hawaii 2023 Guide: Income & Expenses

Hawaii is known for its beautiful beaches, year-round great weather, unique cultural heritage, and excellent quality of life. However, living in paradise comes at a price. One of the things you’re probably wondering as you contemplate a move to Hawaii is:

What is the cost of living in Hawaii?

This guide aims to answer that question and more. We will discuss the latest cost of living data for Hawaii in 2023, dissect the key expenses, and provide a clear picture of what it’s like to live in this tropical paradise.

Why is Hawaii So Expensive?

The first question that probably comes to mind is,

Why is Hawaii so expensive?

The answer is quite simple: Hawaii is an island paradise with limited land and resources, which drives up the costs. Additionally, the cost of shipping goods from the mainland contributes significantly to the high cost of living.

While the cost of living in Hawaii may be higher than the average on the mainland US, the exceptional quality of life, breathtaking natural beauty, and distinct culture are definitely worth the investment.

The Cost of Living in Hawaii 2023

As per various reports, the cost of living index in Hawaii stands at 193.3 as of May 2022. This index reflects the relative cost of consumer goods, including groceries, dining, transportation, and utilities. It also factors in the cost of housing – an aspect we’ll explore in detail later.

Housing Costs in Hawaii

Housing is undoubtedly the most substantial expense for residents in Hawaii. In fact, Hawaii consistently ranks as the most expensive state in the U.S. for housing.

The cost of housing in Hawaii varies significantly depending on the location. Living further away from tourist areas and the coast is less expensive. Conversely, living near the beaches comes at a premium and may be less affordable for some.

As of this date, the average Hawaii home value is $834,499.

Buying a Home for Sale in Maui

Maui, in particular, is known for its Hawaii luxury real estate market. The median sales price of a single-family home on Maui reached $1,271,500 and a condominium home at $835,000 as of May 2023.

Although these numbers may seem intimidating, many find the investment worth it for the stunning views, rich culture, and relaxed lifestyle that Maui offers.

Renting in Maui

If you’re not ready to buy just yet, renting is a viable option. Rents in Maui can vary based on location and property type. Despite the prices, the unparalleled view of the Pacific Ocean and the close proximity to nature make every dollar worth it.

For example, the average cost of housing rentals in Lahaina (June 2023) is:

  • Studio apartment: $2,000
  • One-bedroom apartment: $2,500
  • Two-bedroom apartment: $3,975

Average Income in Hawaii

According to the Living Wage Calculator, an individual living in Hawaii must earn at least $22.05 per hour to make a living wage while the minimum wage is $12.00 as of 2023. If it is a family consisting of a couple with three children, both adults must earn $37.18 per hour to make a living wage.

Bear in mind that wages vary significantly based on factors such as industry, experience, and job role. With the booming tourism and real estate sectors, there are ample opportunities for a lucrative career in Hawaii.

Groceries & Dining Out in Hawaii

Grocery prices in Hawaii are higher than in the mainland U.S. due to transportation costs. However, you can save by buying local produce, which is not only fresher but also cheaper.

When it comes to dining out, Maui boasts an array of restaurants to suit every budget. From affordable food trucks to high-end beachfront dining, you’re sure to find something that tickles your palate.

Cost of Utilities in Hawaii

Utilities in Hawaii are another significant expense, primarily due to the state’s reliance on imported fossil fuels for electricity.

Payless Power’s report on electricity rates by state shows that Hawaii has the highest average monthly energy bills in the nation, with residents paying an average of $393.87 per month. Various factors such as the type of residence, number of occupants, frequency of staying at home, and air conditioner usage may result in varying electricity bills.

However, many residents offset these costs by taking advantage of Hawaii’s abundant sunshine with solar panels.

Transportation in Hawaii

While public transportation is available, many Maui residents find having a car more convenient. Remember to factor in the cost of gas, which tends to be higher due to shipping costs.

Healthcare in Hawaii

Hawaii has some of the best healthcare services in the U.S. While healthcare costs can be higher than on the mainland, the quality of care is excellent.

Example Budget to Live in Hawaii

To give you an idea of what it costs to live in Hawaii, here’s an example monthly budget for a couple:

  • Housing: $2,500
  • Utilities: $400
  • Groceries: $600
  • Dining out: $200
  • Transportation: $300
  • Health insurance: $400
  • Miscellaneous (entertainment, personal care, etc.): $300

This totals approximately $4,700 per month or $56,400 per year. However, this is just an example. Your budget may vary based on your lifestyle and income.

Making the Move to Maui

If you’re considering a move or retiring to Maui, it’s worth noting that while the cost of living might be higher than in other parts of Hawaii, the island offers an unbeatable lifestyle. From stunning beaches to world-class dining and shopping, Maui truly has it all.

Whether you’re looking for a Maui beachfront luxury condo or a secluded estate nestled in the hills, Betty and Roy can help you find your dream Hawaii home.

Closing Thoughts: The Value of Living Life in Hawaii

The cost of living in Hawaii, particularly Maui, may be higher than many other places in the U.S., but it’s important to remember what you’re paying for a chance to live in one of the most beautiful places on earth. The Aloha spirit, the stunning landscapes, and the unique culture are truly priceless.

If you’re considering a move to Hawaii, we encourage you to look beyond the numbers. Instead, think about the lifestyle you’re seeking. If you value natural beauty, cultural richness, and a relaxed pace of life, then you’ll find that Hawaii is worth every penny.

In the end, the cost of living is just one aspect of Hawaii’s life. As Mark Twain once said,

Hawaii is the loveliest fleet of islands that lies anchored in any ocean.

We couldn’t agree more!

Welcome to your new Hawaiian life, where the views are stunning, the vibes are chill, and the living is splendid. Contact us now and let us help you find your dream home in paradise.

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