The cost of living in Hawaii is 170.0. An American 100 is used to calculate the cost of living indexes. Compared to the national average, a score below 100 indicates that Hawaii is a more affordable vacation destination. The higher the cost of living index, the more expensive Hawaii is.
What Does the Cost of Living in Hawaii?
Many people are put off from moving here because of the high expense of living here, which may be prohibitive for many people, even if it’s gorgeous here. With first-hand accounts from residents, here is all the information you need to know about the costs of living in Hawaii.
| Cost of Living | Hawaii |
|---|---|
| Overall | 170 |
| Grocery | 150.7 |
| Health | 94.3 |
| Housing | 268.9 |
| Median Home Cost | $732,000 |
| Utilities | 185.8 |
| Transportation | 122.9 |
| Miscellaneous | 108.4 |
Income
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According to some surveys, you’ll need an income of more than $122,000 to live comfortably in Hawaii. Every person’s quality of living is different, and it all relies on what you consider “comfortable.”
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According to the Massachusetts Institute of Technology’s (MIT) Living Wage Calculator, you need $16.59 an hour for a living wage for one adult in Honolulu, according to the Massachusetts Institute of Technology’s (MIT) Living Wage Calculator. For a couple with two children, each adult needs to earn $17.70 per hour.
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However, although Honolulu, the island’s capital and largest city, has one of the highest median annual salaries at $66,000 according to Payscale, the state’s top marginal income tax rate is 11 per cent.
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It is estimated that the average American wage will be $51,688 in the third quarter of 2020, according to the Bureau of Labor Statistics.
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A website conducted another study in January 2021 and found that the average annual wage in Hawaii ranged from $33,965 for Customer Service Representatives to $96,620 for Travel Nurses.
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Although the city of Honolulu may have a lower income and a higher cost of living, many individuals find its enticing aspects to outweigh these disadvantages.
Expenses
Compared to the rest of the United States, renting in Hawaii is a lot more costly – and it all depends on where you live. On Oahu, for example, a studio apartment might cost anywhere from $1000 to more than $1,600 per month, and that doesn’t include utilities.
To begin with, a one-bedroom apartment would set you back anywhere from $1500 to over $2000 a month, while the cost of a two-bedroom apartment or house will begin at $1,800 per month. Is this a one-bedroom apartment you’re interested in? At least $3,000 a month is required.
Even if you don’t want to live in the heart of Honolulu, you may always explore moving somewhere in the Hawaiian Islands, such as the Big Island’s Hilo, which is about 49 to 56 per cent less expensive than Honolulu and has a more laid-back and pleasant small-town atmosphere.
If you’re in the market to purchase a single-family house, the median sales price will be $870,000 in December 2020, a new record high. Oahu condos sell for an average of $455,500. Despite the high costs, Oahu’s real estate market continues to rise.
You may also purchase property and construct your own house, but it relies on where you live and the quality of your general contractor. Building a house on your own in Hawaii might cost anything from $60,000 to $100,000.
Residents of Hawaii pay the nation’s highest monthly energy expenses when it comes to utilities. According to this study, the average monthly energy cost in the United States is $168.13, based on data from the U.S. Energy Information Administration (EIA)… $50.48 more costly than the national average of $117.65.
There is an 8 per cent higher rate of sunshine in Hawaii than in other states, which provides a potential for low-cost solar energy. According to Hawaii’s stated goal, all of the island’s power will be generated from renewable sources by 2045.
Transportation
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For example, if you decide to reside outside of Honolulu or the downtown region, you’ll then be required to take into account the expense of owning and operating your automobile.
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In Honolulu, gas rates are now $3.16 per gallon. It is possible to save money by using the bus or TheBus in Oahu, but it may not be an enticing daily commute option.
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There’s a good chance that if you work in downtown Honolulu or Waikiki, you’ll need to hire a parking space to go to work. The cost of parking is generally between $100 and $200 per day. Condo residents may also be required to rent a parking space at a similar cost, depending on the regulations of their organization.
Groceries and Dining Out
Honolulu Rail Transit may be an option if you reside in Kapolei or on Oahu’s Ewa side. There have, however, been several delays in the construction of the building and the production of local coffee.
Despite this, Hawaii has the most costly grocery stores in the country, mainly because mainland supplies must be flown in. The Missouri Economic Research and Information Center estimates that the cost of food in Hawaii will be prohibitively high in 2020’s third quarter.
According to the research, Hawaii was 196.3 out of 100, California ranked 138.5 out of 100, Washington was 111.3, and Oregon ranked 134.6.
If you’re on Oahu, a gallon of whole milk might run you $8.99, whereas Costco’s lowest is approximately $5.50. It’s $3.79 for 1lb of broccoli and $3.49 for 1lb of bulk carrots.
The price of Hawaii-grown mangos is around $6.99 per pound; however, purchasing locally is highly recommended. The cost of four rolls of toilet paper is about six dollars.
Eating out may rapidly add up. Breakfast is $8 to $12, lunch is $8 to $15, and supper is $15 to $30 in Hawaii (or more).
Many individuals would purchase a plate lunch (white rice, mac salad, and an entree like loco moco or teriyaki beef) and keep it for lunch and dinner, or divide the whole plate in half with a buddy. The pricing range is so wide because of this that it’s not uncommon.
Miscellaneous
I have some excellent news for you. This is one of the lowest property tax rates in the United States. From 1.4 per cent to 11 per cent, income tax is levied.
Hawaii is a good option for retirees since the state does not tax Social Security and public pension payments. Private pension and retirement savings account income are subject to total taxation.
According to Commonwealth Fund research, employer-sponsored health insurance in Hawaii has among of the lowest premiums in the country.
Insurance in Hawaii is often offered through Kaiser Foundation Health Plan Inc. or the Hawaii Medical Service Association, which operate in the state (HMSA).
According to this analysis, employees in Hawaii might face a bill of $4,664 (8 per cent of median income) compared to a nationwide cost of $7,240 (12 per cent of median income).
Employer expenses for single coverage in Hawaii in 2017 were $675, less than half the national average of $1,415, making it the most affordable in the U.S.
In addition to being the healthiest state in the union, Hawaii has been ranked as such nine times since 1990. Because of lower levels of air pollution, a lower level of mental stress, and an abundance of primary care doctors, fewer people are overweight or smoke.
A budget for a four-person household in a single-family home looks somewhat like this:
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Monthly mortgage payment: $2,900
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Shopping - $800 - $1000 monthly
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Monthly electric bill: $190
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For $380 per month, you get transportation.
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Dining out - $500 a month.
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Annual property tax: $2,350
Based on the given criteria, the following figures are provided:
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You have a single wall-mounted air conditioner that you use only sometimes.
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You own two gas-powered automobiles.
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You may also go to Safeway, Foodland, or Costco to stock up on supplies.
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Once or twice a week, you eat out at a reasonably priced establishment.
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You don’t have to go far to get to work.
How to Cut Costs:
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Costco is a great place to shop. Shop at NEX if you or a member of your family is a member of the military.
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In Hawaii, Costco is the place to go for the best deals on petrol.
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Honolulu has seen an increase in the use of electric cars (E.V.s). Free street parking and access to the HOV lane are just some of the perks available to owners of electric vehicles (E.V.).
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Several initiatives are available to Hawaiian Electric Company consumers to help them save money on their utility bills, including solar panels.
Summary:
While the above figures do not include the cost of health insurance or other costs, we may draw a few conclusions: Hawaii has one of the lowest property tax rates in the nation. Food is expensive in Hawaii compared to other places. Some areas, like California and New York, have higher transportation costs. Parking is expensive in New York, but you may avoid it by using their excellent public transit system.
Frequently Asked Questions
Here are some faqs related to the cost of living in Hawaii.
1. Living in Hawaii, how much money do you need?
Some surveys reveal that an income of over $122,000 is required to live comfortably in Hawaii.
2. What is the cost of living in Hawaii?
As of 2019, Hawaii has the highest cost of living index of 191.8, according to a Missouri Economic Research and Information Center report. A 100-point national average index was created, and Hawaii outperformed the rest of the country with 159.
3. How much money do the wealthy in Hawaii have?
Hawaii’s top 1% earns a lot more than those in the state’s top 5%, which requires a salary of more than $240,000. According to the Economic Policy Institute, an annual salary of at least $310,566 is required to qualify.
4. What is Hawaii’s bare-bones wage?
The current minimum wage in Hawaii is $10.10 an hour, $2.85 more than the federal minimum wage of $7.25.
5. Hawaii or California, which is more affordable?
The cost of living in Hawaii is 54.1 points greater than California’s and 21.1 points higher than the least costly state in the “115 or above” bracket Maine, which has the second-lowest-cost of living index.
6. How can the residents of Hawaii afford to live there?
The cost of living might be reduced if you have family and friends in the area. For example, on the island, there are numerous multi-family homes where families live with their in-laws or grandparents. Affording the high expense of life is made more accessible by these ties.
7. Is it safe to live in Hawaii?
The island as a whole is highly secure, and the many places and regions in which to reside are also safe. Approximately 9.3 million people visit the island each year.
8. How much does it cost to have an hour of work done in Hawaii?
In Hawaii, a single working adult without children and receiving benefits need to earn $21.85 per hour, or $23.82 per hour in 2020, according to a new study by the University of Hawaii. To be financially stable in 2020, the person will need $27.48 per hour in benefits-free wages. Each state’s “housing wage” is calculated by the National Low-Income Housing Coalition.
9. Is it possible to live in Hawaii on $50,000 a year?
You can live in Hawaii on less than $50,000 a year if you’re willing to live extremely frugally, but I wouldn’t suggest it unless you’re prepared to do so. Even with a yearly salary of $30K, some individuals can make it work.
10. In Hawaii, how much is a Big Mac?
In Honolulu, Hawaii, a combo meal at a fast-food restaurant (such as a Big Mac Meal or an equivalent) costs $9. Based on nine pricing points, this is the average.
Conclusion
Adapting to the high expense of living in Hawaii will need some introspection and examining your current way of life. A few compromises may be necessary for those who aren’t acclimated to a lower level of life in Hawaii. However, if living near the ocean, a warm temperature, and a healthy island environment are essential to you, then you may not find it a hardship to give up your fancy automobile or dine out less. It’s all about finding a happy medium between your personal and familial ideals.