The True Cost of Homeownership on Hawaii Island: What Retirees and Second-Home Buyers Need to Know in 2026

What I noticed most this year in 2025, was the questions buyers were asking of us on many of our listings. MOST had to do with energy costs. Our buyers this year came to us dreaming of sunsets over the Pacific and gentle island breezes but also wanted to know how much it all really cost on a monthly basis for the homes they were considering.  For many retirees and second-home buyers, Hawaii Island feels like paradise found. But before you make the leap, it’s essential to understand the real costs—beyond the listing price—of owning a home in this tropical haven.

Upfront and Ongoing Expenses

Buying a home here means more than just a down payment and a mortgage. Closing costs, property taxes, and insurance can add up quickly. Monthly expenses like utilities, maintenance, and association fees (if applicable) also play a big role. For retirees on a fixed income or those managing a second property, every dollar makes a difference. We have seen buyers become MUCH MORE adamant about asking the seller for the monthly costs of electricity, landscape maintainence, pool maintainence, if solar is leased or owned, and warranties on everything. 

Island-Specific Costs

Hawaii Island’s beauty comes with unique challenges. Shipping costs make household goods and building materials pricier than on the mainland.  (In fact, shipping rates on Young Brothers went up 25% on January 1st for inter island shipping). Salt air and humidity can accelerate wear and tear on appliances, so budgeting for regular maintenance or replacement is a smart idea. Water and electricity can be expensive—unless you plan ahead.

A Real-Life Example: Planning Pays Off

One of our clients thought they had found their forever home and invested in making it as cost-efficient as possible. They installed solar panels as an add on to a system that has net metering, slashing their monthly energy bill to just $79. An endless swim spa replaced a traditional pool, cutting down on both energy and maintenance costs. Landscaping was put on drip irrigation to conserve water, and split A/C systems in bedrooms meant they could cool only the spaces they used most. These thoughtful upgrades not only made island living more affordable but also increased the home’s appeal and value when life unexpectedly called them back to the mainland. (Their home is currently for sale in the desirable Lokahi Makai neighborhood and we can provide a tour and more info! )

Second-Home and Remote Ownership Considerations

Owning a second home from afar adds another layer of cost and complexity. Property management, security, and regular upkeep require trusted local help. Travel expenses for visits and the peace of mind that comes from knowing your home is cared for should all factor into your budget.

The National Associaton of Realtors survey of agents in 2025 showed that solar energy systems are on the most desired and valuable green home features for buyers and sellers, with many agents reporting they boost property value as buyers look for cost savings in markets around the country, not just Hawaii. We have noticed when our buyers give us a list of things they want in a home, solar is one of the top check box items and split A/C is another, especially in investment condos. If the home you are considering has many of the items on the list below, you could save THOUSANDS of dollars during the time you own the home and for condos, guests are more likely to book if they know A/C is included. 

Tips for Smart Island Homeownership

• Invest in energy-efficient upgrades like solar panels and split A/C
• Consider water-saving landscaping solutions
• Plan for regular maintenance and unexpected repairs
• For ceiling fans, convert to new DC fans  
• Install LED lights 
• Install a solar hot water heater 

Home prices used to be the only consideration when buying a home, but more and more buyers are understanding the long term costs of a home, especially in Hawaii. When you’re prepared for the true costs, you can budget better and be more comfortable with your decision on the perfect home or condo, making your home both a paradise and a smart investment.

If you would like to learn more, we offer Zoom calls and also can point you in the right direction to discuss solar, landscaping, and installation with people we like and trust! 

Connect directly with me at Julie@Ziemelis.com or 808-333-1004