Cost Of Living In Hawaii, the average person will need to earn $17.63 per hour, according to the Hawaii Department of Business, Economic Development & Tourism’s (DBEDT) self-sufficiency income guidelines. Housing, food, transportation, healthcare, and other expenses would be covered. The cost of living in Hawaii is astronomical compared to other places. The beauty of the islands and their people, on the other hand, is what stops people from leaving.
COST OF LIVING IN HAWAII
Except for New York City, London, Paris, Los Angeles, and other iconic cities made famous by historical culture or Hollywood, few places in the world have the same brand recognition as Hawaii Family Feud questions such as “Choose The Top Vacation Destinations” or “Name A Place You Will Live If Money Were No Object” would likely lead people to name “Hawaii.”
That considered, it’s no surprise that Honolulu is frequently named among the top three most expensive cities in the United States. According to a 2019 assessment by the Missouri Economic Research and Information Center, Hawaii has the highest cost of living in the United States. 159 was the District of Columbia’s score compared to the national average of 100.
For far too many people, Hawaii is a trophy destination, a once-in-a-lifetime or never-in-a-lifetime event. According to some estimates, the average cost of a week in Hawaii for a family of four is around $1,899 per person.
Postcard-perfect white sand beaches, mountainous scenery, and the crystal blue Pacific Ocean are hard to fathom as everyday realities for some. Though I would still not have it any other way, certain concessions must be made.
So, if you’ve ever wondered, “How much does living in Hawaii cost?” Allow us to explain it to you, but from the perspective of a couple from Missouri who recently relocated to Hawaii.
We’ve experienced everything from being born and raised in the country’s third-cheapest state to start a life, family, job, and real estate portfolio in one of the most expensive. We’ll go through the financial aspects of the topic and the intangibles associated with living in Hawaii.
On the one side, you’ll find local families who have been brought closer together by pooling resources to get multi-generational housing, or you’ll discover families like ours who have been separated between Hawaii and Missouri.
According to studies, inhabitants of Honolulu need a household income of $120,000 or more to live comfortably in the state capital. Of course, this is subjective, but the median household income in Honolulu in 2019 was roughly $80,000, according to the U.S. Census.
Whether subjective or not, that’s a significant disparity, indicating that many Honolulu residents aren’t living in luxury. According to a Payscale.com poll, the cost of living in Honolulu, The cost of living in Hawaii, is 88% higher than the national average, and the cost of housing is 202% higher.
1. DAY-TO-DAY EXPENSES
Using the example above of a $93,000 “low income” earner, we’ll calculate their net salaries using a 22 percent federal tax rate and an 8.25 percent Hawaii income tax rate, as shown in the chart.
After taxes, the individual’s net salary is $64,635 per year, or $5,386 per month for housing and other living expenses. Look at some everyday expenses and see how they affect your own budget.
2. Apartments in Hawaii
Depending on which island and which side of each island you’re on, the cost of renting a home in Hawaii can be among of the highest in the country.
The highest-ranking apartments in the state are in Honolulu, which is mainly owing to their proximity to the commercial district and the majority of Honolulu jobs.
The following is the average rent in Honolulu for apartments and single-family homes:
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$1,000 - $1,300 for studios
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One-bedroom apartments | $1,400 to $1,700
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$1700 - $2,100 for two bedrooms
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$3,100 - $2,600 for three bedrooms
These are only average ranges, and they can vary a lot depending on whether or not there are ocean views or how close you are to the water. As a reference, here are Honolulu’s five most costly rental units.
Rent prices on the Big Island of [Hawaii]](https://howtodiscuss.com/t/hawaiian-outfit-ideas/117501) are significantly lower than in Honolulu, which can be linked to the quantity of commerce, jobs, and closeness to employers.
Because Hawaii Island is slower and has fewer people and job opportunities, Rents, and property sales are in lesser demand, resulting in lower pricing.
3. Purchasing a House
According to the graph above, Hawaii’s great median property prices reached highs of roughly $835,000 for single-family homes in 2019 and $400,000 for condos for sale in Honolulu.
Despite the lack of affordability, Oahu has a severe housing shortage, and as a result, residential developers have flocked to the island to meet the demand.
For the past 6-7 years, developers have developed New Honolulu Condos in neighborhoods like Kakaako and Ala Moana.
Developers are especially active in the West Oahu areas of Hoopili and Koa Ridge, where approximately 15,000 new dwellings are planned to be constructed during the next 15 years. Rumors of a Makaiwa Hills development in Makakilo could result in the addition of a few hundred more.
4. Electricity In Hawaii
Hawaii’s average electricity bill is around $50/month greater than the national average., the average monthly electricity bill in Hawaii is $168.13, making it the most expensive in the U.S.
5. Transportation
Let’s imagine you want to live somewhere else than Honolulu’s bustling downtown area; you’ll need to consider the cost of owning and operating a vehicle. In Honolulu, gas costs around $3.16 per gallon as of January 2021.
At $2.75 a ticket, taking the bus or, in Oahu, The Bus, may be a more cost-effective mode of transportation; however, it may not be an enticing daily trip.
Whether you work in downtown Honolulu or Waikiki, you will almost probably need to hire a parking spot if your employer does not provide one. Parking costs usually vary from $100 to $200.
Those who live in a condo may be required to rent a stall at a similar price, depending on the association’s bylaws.
You might be able to use the Honolulu Rail Transit to work if you reside in Kapolei or on Oahu’s Ewa side. However, there have been numerous delays in its development;
Hawaii is a tropical paradise. That much is well-known around the globe. Life on the islands is incredible, thanks to the beautiful surroundings and fresh island air.
Even after all these years, I’m still taken aback by the wonders of nature. Charming and laid-back lifestyle. My lack of use of my return ticket in 1999 was one of the leading causes.
This environment emphasizes getting involved in your community, meeting new people, and staying physically active. Which is ideal for raising a family. I’ve been here for more than 20 years, and I adore it.
We have a high ranking on considerable cost of living indices with good cause. Hawaii is a paradise unlike any other, providing those who seek it with beautiful views, a healthy lifestyle, and a unique cultural melting pot.
It’s about as near to living in a foreign nation as you can get without a passport. You can easily do healthy here if you are aware of the charges and spend your money wisely.
6. Gas Cost In Hawaii
The cost of gas in Hawaii varies greatly depending on which island you live on. In 2020, petrol prices on the island of Hawaii were expected to be approximately $3.25 per gallon, with average gas prices in Honolulu, Hawaii near $3.00 per gallon.
7. Hawaii’s Groceries
You won’t find a more extensive range of groceries anyplace else on the globe than in Hawaii. Hawaii’s culinary options are diverse, thanks to our location midway between the United States and Asia and the tropical fruits endemic to the islands.
Groceries are also expensive due to the high expense of shipping them here due to our geographic position. According to a poll conducted by the Missouri Economic Research and Information Center, Hawaii grocers ranked 164.6 out of 100 in the United States overall. A total of 119.3 points put California in second place.
Visitors frequently exclaim over the high prices of milk in Hawaii, which may exceed $8.99. If you live in this area, getting a Costco membership is a must so you can save money by buying in bulk.
8. HOW TO MAKE IT FROM A LOCAL PERSPECTIVE
Days off from work as a Hawaii resident can still feel like a dream vacation with the proper perspective. Still, for most of us, we’re just one credit card or mortgage statement away from the harsh realities of Hawaii’s high living costs.
I advise all of my local and international customers that living comfortably in Hawaii necessitates a great deal of planning. Applying intention to every dollar spent and every financial decision making.
Whether or not you’ll be able to afford to reside in this city in the future will depend on how many jobs you apply for or if you will be “priced out of paradise.”
To avoid becoming too personal, I believe it is healthy to advise that we should also be incredibly intentional about our relationships. The language we use and how we deal with disagreements with our significant ones.
If having a solid relationship isn’t enough of a motivation, you should know that it’s just good business in Hawaii. Your boss will never offer you a better promotion or demotion than you can give yourself by maintaining or breaking a solid relationship with another source of income.
Apart from the perks of company, family, and stability, the phrase “it’s cheaper to keep her” and vice versa has never rung truer when living anyplace else in the United States.
Working together as a couple to achieve a similar goal is a sure way to “level up” your financial status while living in Hawaii. Still, if you’re ■■■■-bent on going it alone, you’re definitely an underdog, but we’re rooting for you!
9. Low Income
Housing and Urban Development of the United States figured out calculated that an Oahu resident’s “low income” will be $93,000 in 2020. (HUD). Considering that the national average wage for a full-time job is around $48,672, this is remarkable.
10. Hawaii’s State Income Tax
Hawaii’s maximum income tax rate of 11 percent is high when compared to the national average, but the state also boasts the lowest effective property tax rate, at just.27 percent per year.
Businesses must pay a 4% general excise tax on all business activities, with a 0.5 percent override for Honolulu County.
Our cost of living indices is based on a 100-point scale in the United States. If the number is less than 100, Hawaii is less expensive than the rest of the United States.
A cost of living index of greater than 100 indicates that Hawaii is more expensive. There is a $170.0 cost of living in Hawaii.100 is the national average.
| COST OF LIVING | Hawaii | United States |
|---|---|---|
| Overall | 170 | 100 |
| Grocery | 150.7 | 100 |
| Health | 94.3 | 100 |
| Housing | 268.9 | 100 |
| Median Home Cost | $732,000 | $291,700 |
| Utilities | 185.8 | 100 |
| Transportation | 122.9 | 100 |
| Miscellaneous | 108.4 | 100 |
Summary
Without rent, a family of four would spend 861,058.44Rs. (4,934.43$) per month (using our estimator). Without rent, a single person’s monthly costs are expected to be 242,404.65Rs (1,389.14$). The cost of living in Honolulu is 399.22% more than in Karachi (without rent, see our cost of living index). The average rent in Honolulu is 1,267.32 percent greater than in Karachi.
Hawaii Miscellaneous
I have some fantastic news for you. At 0.35 percent, Hawaii has one of the lowest property tax rates in the country. From 1.4 percent to 11% of one’s income is subject to federal income taxation.
A tax exemption on Social Security retirement benefits and income from public pensions makes Hawaii attractive to the elderly. Retirement savings account earnings are not taxed at all.
Health insurance premiums for Hawaii people enrolled in employer-sponsored plans are some of the lowest in the country; an assessment by the Commonwealth Fund substantiates this claim.
The Kaiser Foundation Health Plan Inc. and the Hawaii Medical Service Association are regularly used in Hawaii to provide health insurance (HMSA).
Employees in Hawaii may face a possible cost of $4,664 (eight percent of the state’s median earnings) compared to $7,240 in the rest of the country (12 percent of median income).
On a single-coverage basis, Hawaii’s employees paid $675 in 2017, which is less than half what they would have paid elsewhere in the country in 2017.
Hawaii Savings Options
Buying goods from Costco is a fantastic experience. For military personnel and their families, NEX is a great place to shop.
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In Hawaii, Costco has the cheapest petrol.
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In Hawaii, electric cars (E.V.s) are becoming increasingly popular. Electric vehicle owners are offered incentives such as free street parking and access to HOV lanes.
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Solar Panels - Hawaiian Electric Company offers a variety of solar panel programs to help consumers save money on electricity.
Hawaii High Cost
There are several reasons for Hawaii’s high cost of living, but the quick answer is that we’re surrounded by water.
Almost all of the food we eat must be imported or flown in from other nations. As a consequence, the price of living in Hawaii has risen dramatically.
Another concern is the high cost of electricity, which is caused by the hot weather. There is, as with so many things in life, a trade-off.
Hawaii Worth Livings
“Mainland property costs are alluring, especially when we see prices in Hawaii continue to rise year after year.” However, Hawaii is my home. It has a family feel about it. I made it work by renting a condo rather than buying a house.
Instead of going to other grocery stores, I shop in bulk at Costco since they have some of the best grocery pricing in town. “I also keep an eye on sales…just it’s the way things are,” L.M. explains.
“I’ve considered going to the mainland, where the cost of living is far lower, but it’s difficult to envision having to start over.” My ancestors came from Hawaii, and my family still lives there. C.O. explains that he saves a lot of money on rent by living with his parents.
In Honolulu, “living costs are high.” Even though we’ve spoken of relocating to the mainland, neither can see doing so for us. Even though things can be challenging, we manage to get by.
To save money, we buy in bulk and have my wife care for our two children at home rather than paying for daycare services.
Every penny matters to her because she works from home. We shop at Costco and Target, as well as on Facebook Marketplace and Ebay, for bargains. Every day, we cook at home, and our monthly budget is rather stringent," K.K. explains.
Los Angeles’s cost of living wasn’t all that different from Hawaii’s six years ago when I relocated for a new career. I’ll be in Minnesota this year. Although clothing and food are exempt from taxation, a four-bedroom house costs $200,000 to buy.
According to the old proverb, “it’s the price of paradise.” I was just offered a high-paying summer job, but I turned it down despite the outstanding payments. I would have to return to an apartment and drastically reduce my standard of life," J.G. explains.
"I’ve been in San Francisco for nearly five years. I’ve met several individuals from Hawaii out here, and we’ve all had similar experiences. We’ve come to look for work, go to school, or take advantage of chances. Apart from the house, which is comparable to Hawaii, living costs are lower.
Jobs pay more, and there are more available. And, even though we no longer live in paradise, I can now afford to go anytime I want. “I miss Hawaii a lot, but it’s not financially feasible for me to return at this time,” J.D. explains.
Summary
In Hawaii, “living costs are high,” but L.M. says he makes it work by renting a condo rather than buying a house. C.O. saves a lot of money on rent by living with his parents and has his wife care for his two children at home. Jobs pay more, and there are more available.
Good News About Hawaii
Hawaii is the healthiest state in the U.S., having won the title nine times since 1990. Obesity and smoking rates can be reduced by factors such as low air pollution, less mental stress, and a large number of primary care providers.
A budget for a family of four living in a single-family home would look like this:
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Groceries range from $800 to $1,000 per month.
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Electricity costs $190 per month.
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Transportation costs $380.
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Dining out costs $500 each month.
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You just have one wall air conditioner, which you use sparingly.
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You own two gas automobiles.
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Purchase items from Costco, Foodland, and Safeway.
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You only go out to eat at a low-cost restaurant once or twice a week.
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You reside near your workplace.
Frequently Asked Questions(FAQs)
People asked many questions about “Cost of living in Hawaii” few of them were answered below:
1. How so much cash do you need to be able to live comfortably in Hawaii?
According to some research, a salary of over $122,000 is required to live comfortably in Hawaii.
2. How much does a living wage in Hawaii cost?
According to the Hawaii Department of Business and Economic Development, a single individual’s basic minimum living wage is roughly $17 per hour.
3. Is it expensive to live in Hawaii?
According to a 2019 research by the Missouri Economic Research and Information Center, The cost of living in Hawaii is the most expensive in the United States of America; 159 was the District of Columbia’s score compared to the national average of 100.
4. How much will it cost to live in Hawaii in 2020?
To live comfortably in 2020, the average person will need to earn $17.63 per hour, according to the Hawaii Department of Business, Economic Development & Tourism’s (DBEDT) self-sufficiency income guidelines. Housing, food, transportation, healthcare, and other expenses would be covered.
5. Is it challenging to find work in Hawaii?
Finding a job in Hawaii can be as easy and quick as pounding the pavement day after day, or as laborious and slow as water sweat dripping off your head. It would help if you did everything necessary to secure a job as soon as feasible because it is not enjoyable to spend your hard-earned cash on living expenses.
6. Is it possible to live in Hawaii for $50,000?
I’ve lived in Hawaii for almost three years and can attest that earning $50,000 per year is feasible. You’ll have to get used to going to the farmer’s market, eating seasonally, and skipping out on a lot of your present ‘necessities,’ such as youtube, Netflix, and fast food.
7. Is Hawaii a secure place to live?
The island as a whole is highly safe, and the many sections and regions where people can dwell are all safe. The island presently receives roughly 9.3 million visitors every year.
8. Which state has the highest cost of living?
Hawaii, the Aloha State may be the most beautiful place on earth, but the Aloha State’s costs, as America’s most costly state, will steal your breath away as well.
9. What is the source of Hawaii’s exorbitant prices?
Even though the islands have the tenth highest median pay in the country, typical living costs are up to two-thirds more than the rest of the country. The necessity to import everything to the island, either by sea or by plane, drives Hawaii’s high cost of living. Housing prices are also a significant factor.
10. Which state is the cheapest in United states?
The Cheapest State to Live in is Mississippi. It costs nothing as compared to Hawaii to live in Mississippi than any other state in the United States of America.
Conclusion
Hawaii is the most expensive state in the United States to live in. according to a 2019 report. The median household income in Honolulu in 2019 was roughly $80,000. Hawaii’s average electricity bill is $168.13 per month, making it the most expensive in the country.
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