There's often talk about the affordability and availability of housing in Hawai‘i.
While affordability challenges are real, local real estate experts say homeownership is possible.
June is National Homeownership Month and Aloha State Daily recently caught up with Aaron Tangonan, president of the Honolulu Board of Realtors, to see what prospective homebuyers should know about the process. Here's what he had to say.
We hear a lot about housing affordability and availability. Realistically, how feasible is it to become a homeowner in Hawai‘i in 2026?
Affordability challenges are real, and we never want to minimize them. At the same time, one of the biggest challenges we see is that many local residents no longer believe homeownership is possible. Our concern is that many people become discouraged before they even begin exploring their options.
The reality is that local residents continue to buy homes every day. Nationally, first-time buyers made up 32% of all home buyers last year, up from 26% the year before, according to the National Association of Realtors.
While Hawaiʻi faces unique affordability challenges, we continue to see local residents finding pathways to homeownership.
For most, that journey begins with getting on the housing ladder by purchasing a starter home and building equity. Over time, the equity gained from that home can be used to help purchase your dream or forever home.
The keys to homeownership are education, financial preparedness, patience and working with professionals. For buyers today, affordability is about more than just the purchase price. Interest rates play an important role in determining monthly payments and purchasing power, which is why it's important to focus on personal needs, budget and long-term goals rather than any single market factor.
We’ve seen this firsthand through local families who recently became homeowners through [Hawai‘i Housing Finance and Development Corp.]’s Hale Kamaʻāina Mortgage Program. One buyer, a teacher, purchased a one-bedroom condominium in Makiki and shared that access to a lower interest rate helped make her monthly payment more manageable. Another local family purchased a three-bedroom townhome in Mililani Mauka and said the program helped make homeownership feel attainable. Their stories are reminders that while the path may look different for everyone, opportunities still exist for those who take the time to prepare and explore their options.
What are the benefits and drawbacks of working with a real estate agent and trying to go through the process without one?
As trusted advisers, Realtors leverage their industry knowledge and stay current on market conditions to help guide buyers through what is often one of the largest financial decisions of their lives. They can help buyers better understand the market, identify opportunities, connect with resources, navigate contracts and develop a strategy that aligns with their goals. Realtors are also held to a strict Code of Ethics and have a duty to protect and promote their clients’ interests. According to the National Association of Realtors, 88% of buyers purchased their homes through an agent, and 91% said they would use their agent again or recommend them to others.
While it is possible to purchase a home without representation, buyers who choose to do so may be responsible for navigating contracts, negotiations, deadlines and other aspects of the transaction on their own, including roadblocks along the way which are inevitable. Every buyer’s situation is different, but many first-time homebuyers find value in having an experienced professional by their side. We have also seen Realtors go above and beyond to help clients achieve homeownership, whether that’s helping them navigate challenges, connecting them with resources or finding creative solutions to help them reach the finish line.
What are three things first-time homebuyers should know about the home-buying process?
- First, affordability is about more than the purchase price. Buyers should understand the full monthly cost of ownership, including factors like interest rates, insurance, maintenance fees and other ongoing expenses. A lower purchase price does not always translate to a lower monthly payment, which is why it’s important to look at the complete financial picture when evaluating a home.
- Second, preparation matters. The earlier buyers begin educating themselves about the process, understanding their finances and exploring available options, the better positioned they will be when opportunities arise. Homeownership is a process, and taking the time to build a plan can make a meaningful difference. It is never too early to start planning. In fact, the sooner you give in to your curiosity, the better! Come up with a list of needs and wants, make it as long as you need, and then evaluate which of them you can live with or without. Remember that finishes like cabinets, countertops, appliances, etc. can all be changed to your liking over time. Look at the overall space of the home and imagine yourself coming home to that every day. Walking through homes will satisfy your imagination more than photos ever can.
- Third, don’t assume homeownership is out of reach. Affordability challenges are real, but local residents continue to buy homes every day. Too often, people become discouraged before they fully explore the programs, resources and opportunities available to them. Staying engaged, asking questions and seeking trusted guidance can help buyers better understand what may be possible for their situation. It’s important to remember that for most people, the first home they buy is not necessarily their dream home or forever home. But the sooner you can get on the housing ladder and begin building equity through that first starter home, the better positioned you will be to move on to that forever home.
What resources are available for first-time homebuyers, specifically? Are there programs that make the process easier or the goal more attainable?
There are a variety of resources available to help first-time homebuyers better understand the process and prepare for homeownership. Through the Honolulu Board of Realtors’ partnership with the Hawaiʻi HomeOwnership Center, the HOPE (Housing Opportunities are Possible for Everyone) Homebuyer Education Program helps prospective buyers better understand budgeting, financing, mortgage terms and what it takes to prepare for homeownership. Since 2021, more than 850 individuals have participated in the program, and 70% have gone on to purchase a home or enter escrow within 6 to 18 months.
Other programs include:
- Hawai‘i Housing Finance and Development Corp. – Hale Kamaʻāina Program: A statewide mortgage program that may include down payment and closing cost assistance for eligible first-time homebuyers.
- American Savings Bank – This is HOME Program: A home loan program designed to support eligible first-time homebuyers.
- First Hawaiian Bank – First Step Home Loan: A home loan program that offers eligible first-time homebuyers flexible down payment options and no mortgage insurance requirement.
- Bank of Hawaiʻi - First Time Homebuyer Program: A home loan program that offers eligible first-time homebuyers mortgage options, homeownership counseling and potential discounts on mortgage points.
- Territorial Savings Bank – First-Time Homebuyer Special: A home loan special that offers eligible first-time homebuyers up to a half-point discount on their mortgage loan.
- Office of Hawaiian Affairs – Access to Homeownership: A deposit-backed mortgage program offered by OHA in partnership with ASB to help eligible Native Hawaiian first-time homebuyers qualify for a home loan with a lower down payment and no private mortgage insurance.
In terms of the current housing market, what kind of opportunities are available for first-time homebuyers in Hawai’i today?
Over the past year, nearly 2,200 properties sold for $500,000 or less, showing that buyers are still finding opportunities at more attainable price points. There are also nearly 1,200 active listings in this price range, particularly in the Metro region, Pearl City, and Central and Leeward O‘ahu.
The condominium market continues to serve as an important entry point into homeownership for many local buyers. According to our Local Market Update for May, year-to-date median sales prices remained below $500,000 in Downtown-Nuʻuanu, Kalihi-Palama, Makaha-Nānākuli, Makiki-Mōʻiliʻili, Moanalua-Salt Lake, Pearl City-ʻAiea, Wahiawā, Waikīkī, Waipahu and the Windward Coast.
Ultimately, the opportunities available will depend on a buyer’s goals, budget and flexibility. The important thing for buyers to know is that opportunities do exist, and taking the time to understand their options, explore different neighborhoods and work with trusted professionals can help them identify a path that aligns with their needs and financial circumstances. The key is getting on the housing ladder and building equity in that first home.
Is there anything else readers should know?
I’d encourage anyone interested in homeownership to start the conversation now, even if they aren’t ready to buy tomorrow. The earlier you begin learning about the process, understanding your options and preparing financially, the more opportunities you’ll be able to pursue when the time is right.
Too often, people assume homeownership is out of reach without fully exploring what’s available to them. Every situation is different, but with the right preparation, guidance and patience, homeownership remains an achievable goal for many local residents.
For those who are working toward homeownership, it is important to understand the long-term value it can provide. Renting may make sense depending on a person’s goals and circumstances, whether that means living closer to work, remaining in a desired school district or renting a larger home than they may be able to purchase right away. However, paying rent is paying someone else’s mortgage, and building wealth for someone else.
Historically, real estate has experienced stable long-term growth in value and served as a hedge against inflation. Homeownership can also help owners build savings and equity, creating value that may be realized later if the home is sold. It can also provide more predictability in monthly housing costs through a fixed-rate mortgage, give owners more freedom to make decisions about their living space and, depending on a household’s circumstances, may also come with certain tax advantages. For many local families, it can also create greater stability by allowing them to remain in one neighborhood over time, build lasting relationships within their community and create greater continuity for their children.
For the latest news of Hawai‘i, sign up here for our free Daily Edition newsletter.
Stephanie Salmons can be reached at stephanie@alohastatedaily.com.
