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Maui, HI Real Estate Market Trends & Analysis

Written by Than Merrill

Key Takeaways

  • The Maui real estate market appears to have solved the same inventory problem facing the rest of the country.
  • Real estate in Maui is less affordable than the national average, but demand is still high.
  • Maui real estate investing looks to favor a buy and hold strategy over shorter term strategies.

The Maui real estate market is already at the forefront of today’s housing renaissance, and nearly every indicator suggests the island will continue its positive trends. More importantly, however, it looks like the island has found what appears to be the beginning of a solution to the same inventory problem facing the rest of the county. The Maui housing market has five months of available inventory, more than almost any other market can say. As a result, we may see the Maui real estate market exercise a return to normalcy, which bodes well for real estate investors, buyers and sellers.

Maui Real Estate Market Overview

  • Median Home Value: $606,800
  • 1-Year Appreciation Rate: 7.6%
  • Median Home Value (1-Year Forecast): 1.4%
  • Median Rent Price: $2,775
  • Average Days On Market: 148
  • New Listings: 119
  • Pending Sales: 108
  • Months Of Inventory: 5

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Real estate in Maui

Median Home Price Maui County

The Maui real estate market is particularly healthy, as is evidenced by steady growth in both home prices and demand. More importantly, the $606,800 price point, according to Zillow, hasn’t scared away buyers, which is good news for the island. If for nothing else, prices are expected to continue to grow for the foreseeable future. Per Zillow, an online real estate database company, prices have already increased in the Maui real estate market by 7.6% in the last 12 months. But that’s not all: while price increases are expected to temper, there’s good reason to believe they will increase an additional 1.4% over the course of next year. It is worth noting, however, that real estate in Maui isn’t expected to match the pace of the national average. The experts at Zillow expect the median home value in the United States to increase by as much as 6.5% over the next year, or more than four times the growth Maui is forecasted for.

It is reasonable to assume the tempering of Maui home values is due largely, in part, to the islands unique ability to move inventory. You see, prices are increasing across the country at a rapid rate for one simple reason: supply and demand. The sheer volume of available housing, or lack thereof, has prompted homeowners to increase their prices almost exponentially. However, Maui appears to be bucking the trend. More importantly, Maui’s economy favors “putting existing homes on the market and building new homes for sale,” according to the Realtors Association Of Maui, Inc. In other words, Maui has seen an upward movement in new listings the rest of the country has yet to experience. As it turns out, those new listings will ease future price increases. At its current level, Maui has about five months of inventory, which suggests a healthy level, something most markets would be happy to have.

Maui Real Estate Investing

Maui real estate investing, not unlike every other market, is subject to change based on current conditions. The median home value in Maui is slightly more than triple the national value. More specifically, Maui’s affordability index isn’t what most real estate investors would consider high. If anything, Maui is relatively unaffordable, and that’s according to the islands own Realtors. Now isn’t exactly the best time to invest primarily in rehabs, as the acquisition costs typically leave little room for profit margins. Homes in the Maui real estate market are simply too expensive. That said, I firmly believe there’s an exit strategy for every market, up or down and expensive or affordable. In fact, I maintain that Maui has one distinct exit strategy that looks to be better than all the others at the moment: buy and hold rental properties. Maui real estate investing looks as if it will play favorites to those interesting in becoming landlords. If for nothing else, renting out a property for a few years could offset today’s higher acquisition costs. Now, that’s not to say there aren’t opportunities to flip rehabs, but rather that today’s indicators look to favor longer term strategies. Those interested in Maui real estate investing would be wise to remember as much.

Maui real estate investing

Maui Real Estate Market Summary

As I have already alluded to, the Maui real estate market is doing very well for itself. For all intents and purposes, the island paradise is about as healthy as real estate markets come in today’s competitive landscape. It is worth noting, however, that Maui has a significant advantage over the rest of the country: upward movement in new listings. More importantly, Maui’s economy continues to favor putting existing homes on the market. That means real estate in Maui may have found its way out of the inventory crunch facing the rest of the country. We may very well be witnessing a return to normalcy, which bodes well for everyone, especially Maui real estate investors.

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