Kauaʻi’s lush landscapes, laid-back feel, and local community spirit make it a memorable home for anyone who’s been lucky enough to live on the island. For some, Kauaʻi is a dream destination. For others, Kauaʻi is a jumping-off point for new adventures, either on another island, the U.S. mainland, or abroad.
Whether you’re looking to buy or sell real estate on Kauaʻi, you’re in the right place to get a handle on the Kauaʻi real estate market. Below, we’ll offer real estate trends and trips for Kauaʻi buyers and sellers, so you have all the intel you need to make your next move.
In This Article
- Kauaʻi Real Estate Trends
– Kauaʻi Real Estate Market Overview
– Types of Properties Available on Kauaʻi
- Tips for Buying a Home on Kauaʻi
– The Best Neighborhoods on Kauaʻi
Kauaʻi Real Estate Trends
Whether you’re buying a home on Kauaʻi or selling the one you own, it’s important to have a grasp on the current Kauaʻi real estate market.
Kauaʻi Real Estate $$$ Ranking
#2 out of 4 in the Hawaiian Islands for average home value
Top Neighborhoods
Kapaʻa, Līhuʻe, Puhi, Poʻipū, Hanalei, Princeville, Kīlauea, Hanapēpē, Wailuā
Kauaʻi Real Estate Market Overview
What Is the Average Price of a House on Kauaʻi?
The average value of a home in Kauaʻi County is currently just under $984,000, according to Zillow.
(If you’re curious, Kauaʻi has the second-highest average home value in Hawaiʻi. Maui is number one.)
Are Houses Expensive on Kauaʻi?
Houses can feel expensive on Kauaʻi, especially if you compare the average home value on Kauaʻi to the average U.S. home value of around $360,000. Additionally, Zillow‘s research notes that housing prices on Kauaʻi have gone up by 5% over the last year.
Average Home Value: Kaua’i
~$984,000
Average Home Value: U.S.
~$360,000
(Source: Zillow.com)
Is Kauaʻi Property a Good Investment?
Like many homes across the U.S., Kauaʻi home prices took a dip going into the 2007–2008 financial crisis. However, Kauaʻi County home values have risen steadily since 2011—and have shown a significant increase when compared to 20 years ago, according to Federal Reserve Economic Data (FRED).
Types of Properties Available on Kauaʻi
If you’re new to buying real estate on Kauaʻi, you might be curious what kinds of properties you’ll find on the Garden Isle. You’ll see a mix of:
Condominiums
Condo life offers a maintenance-free lifestyle, plus amenities like outdoor pools and tennis courts to enjoy all year round. On Kauaʻi, you’ll find condos primarily in Poʻipū/Kōloa, Līhuʻe, Kapaʻa, Hanalei, and Princeville.
Kauaʻi Real Estate Tip: If you’re buying a Kauaʻi property as an investment property—or you would like to rent it while you’re off-island—it’s important to be aware of the Kauaʻi County short-term vacation rental laws.
Currently, short-term/transient vacation rentals on Kauaʻi are limited to Visitor Destination Areas like Princeville, Poʻipū, and the Kapaʻa coastal tourism area. Some properties outside this area have been grandfathered in, but new exceptions are rare.
If short-term rentals are part of your plan, make sure to consult with your Kauaʻi real estate agent to ensure you understand what’s legally possible with your property.
Single-Family Homes
Kauaʻi has plenty of single-family homes. In population centers like Kapaʻa and Līhuʻe, these houses might be closer together. However, you will also find grand estates for sale on Kauaʻi on multi-acre lots, especially as you head toward the island’s North Shore. You’ll also find some townhomes on Kauaʻi, largely in Poʻipū, Līhuʻe, and Princeville.
Kauaʻi Real Estate Tip: Some Kauaʻi properties have accessory dwelling units (ADU) and affordable rental units (ARU). You also may be eligible to build these on an existing property. The income from long-term rentals can help defray some of the high costs of Kauaʻi real estate.
To learn more about what’s possible for a property you’re considering, talk to your Kauaʻi real estate agent or visit the Kauaʻi County website.
Parcels of Undeveloped Land
If you want to build your home in paradise from scratch, there are parcels of undeveloped land available in just about all areas of Kauaʻi, including Kekaha, Kōloa, Poʻipū, Kapaʻa, Anahola, Kīlauea, Princeville, and Hanalei.
Tips for Selling Your Home on Kauaʻi
If you’re selling your home on Kauaʻi, the following tips will help you close this chapter of your journey simply and easily, so you can start your next chapter in a new home on Kauaʻi, on another Hawaiian Island, on the mainland, or in an international destination.
Book Your Move Early
Summer is the busiest time for Hawaiʻi moves. For many families, summer is the easiest time to relocate, with minimal disruption to kids’ school schedules. If you plan to make a Kauaʻi move in the summer, book your move as early as possible to get your first pick of moving dates.
Moves of All Sizes Are Available
If you’re moving to the mainland, moving internationally, or moving to another Hawaiian Island, you might think your only options are a 20-foot or a 40-foot container.
Royal Hawaiian Movers does relocations of all sizes, tailored to your needs. Maybe you just want to take a few key pieces with you when you move off-island, like a Koa furniture set that’s been passed down for generations. Our Līhuʻe-based team can help you ship a few pieces—or your entire household. How much you want to move is completely up to you. Just reach out for a quote, tailored to your move.
Understand the Tax Implications of Your Kauaʻi Home Sale
Depending on how long you’ve owned your Kauaʻi home, your property may have appreciated significantly since its purchase. If this is the case, make sure you talk to your tax professional to understand the full implications of your sale:
- If you’re selling a primary residence, you may be eligible to exclude up to $250,000 of any capital gains—or $500,000, if you file jointly with your spouse.
- If you’re selling an investment property, you may be able to defer capital gains with a 1031 exchange.
There are also two laws that you may need to be aware of when selling Kauaʻi real estate:
- HARPTA (Hawaii Real Estate Property Tax Act) applies to sellers who are not Hawaiʻi residents.
- FIRPA (Foreign Investment in Real Estate Property Tax Act of 1980) applies to foreign sellers.
These laws will take a chunk out of the sale price to ensure payment of state and federal capital gains taxes, respectively. Non-resident and foreign sellers will need to file a tax return to recoup any taxes paid in excess, so it’s important to understand these laws if you fall in either of these two categories.
Tips for Buying a Home on Kauaʻi
If you’re moving to Kauaʻi, we’re excited to welcome you to the Garden Isle! We’ve put together a few tips from our local Kauaʻi team to assist with a smooth and simple relocation to the island.
Pick an Experienced Real Estate Professional
An experienced real estate agent can make all the difference when it comes to finding the right Kauaʻi home for you. Pick an agent with real estate experience on Kauaʻi, not just in Hawaiʻi. Real estate laws, neighborhoods, and norms vary from island to island. If you can find someone with experience buying and selling in your target Kauaʻi neighborhood(s), even better.
For more tips, check out our article on finding the right real estate agent.
Choose the Best Kauaʻi Neighborhood for You
Each Kauaʻi neighborhood offers a unique living experience. Make sure to familiarize yourself with the island’s neighborhoods so you can pick the Kauaʻi neighborhood that fits your vision of Kauaʻi life.
North Shore
Top Neighborhoods: Princeville, Hanalei, Kīlauea
Known for its epic waves and lush landscape, the North Shore offers plenty of stunning landscapes for those who love the outdoor life.
South Shore
Top Neighborhoods: Poʻipu, Kalāheo
The sun-drenched South Shore is home to a number of Kauaʻi’s resorts, which makes it a bustling area, full of shops, restaurants, and bars. If you like a livelier atmosphere, the South Shore could be the perfect spot for you.
East Side
Top Neighborhood: Kapaʻa
Known as a family-friendly area, Kauaʻi’s Coconut Coast offers a range of more affordable homes, access to schools, and proximity to the island’s gorgeous windward coastline. Additionally, Kapaʻa is Kauaʻi’s biggest population center. That distinction comes with all the conveniences that make Kauaʻi life easier, including farmers’ markets, shops, and restaurants.
West Side
Top Neighborhoods: Waimea, Kekaha
A quieter area with a strong community feel, the West Side is popular with those looking for a laid-back, rural vibe.
Kauaʻi Neighborhoods: Spotlight on Kapaʻa
For more on the best places to live on Kauaʻi, check out our guide to Kauaʻi’s neighborhoods.
Get Ready to Make the Most of Your Time on Kauaʻi
How will you spend your days on Kauaʻi? If you’re a water person, you’ll love Kauaʻi’s gorgeous beaches, which offer plenty of opportunities for surfing and snorkeling.
Of course, there’s plenty to do beyond the beach, including paddling the Wailua River, hiking the stunning Nā Pali Coast, and visiting the incredible Waimea Canyon, also known as the Grand Canyon of the Pacific.
Maybe a round of golf is more your speed, or you’d like to explore Kauaʻi’s fascinating history. You’ll find all of these options (and more!) on Kauaʻi. For a little inspiration, check out our guide to Kauaʻi’s best activities. You’ll arrive on Kauaʻi ready to make the most of your time on the island.
Making Your Kauaʻi Journey Your Own
Whether this is the start of your journey on Kauaʻi or the end, living on Kauaʻi is an unforgettable experience you’ll carry with you for a lifetime. With these tips, you’ll be prepared for a smooth home sale or purchase—and you’ll be ready to start an exciting new chapter of your life.
Need some help with your Kauaʻi move? Our Līhuʻe-based team can assist with local moves, interisland moves, mainland moves, and international moves—and we handle Kauaʻi moves of all sizes. Just reach out for a complimentary quote to get started.
