The Hawaii property insurance market is showing signs of stabilization as local providers and state-level initiatives address the volatility seen over the past year. Following a period of significant premium increases—particularly for condominium associations—recent data indicates that the entry of more local capacity and the reactivation of state programs are beginning to moderate costs for homeowners.

Market Drivers and Stabilization

The primary driver of this shift is the increased participation of Hawaii-based insurance carriers and the strategic intervention of the Hawaii Hurricane Relief Fund (HHRF). Earlier in 2025, many condominium associations faced insurance premium spikes of 300% to 500% due to a restricted global reinsurance market and the lingering impacts of the 2023 Maui wildfires.

Long-Term Benefits for Homeowners

This stabilizing trend offers several practical advantages for property owners moving forward. Lower insurance premiums reduce the upward pressure on Monthly Association (HOA) fees, which had become a significant barrier for both current owners and prospective buyers. For single-family homeowners, the improved market health means more predictable renewal rates and a wider selection of local providers.

Furthermore, a stable insurance environment supports property values by ensuring that buildings remain eligible for conventional financing. As local providers continue to leverage their specific understanding of Hawaii’s risk landscape, homeowners can expect a more resilient and transparent insurance market that is less susceptible to global price shocks.

The Oahu real estate market displayed a notable split in performance this November, as single-family home sales surged while the condominium sector experienced a cooling period. According to the latest resale figures from the Honolulu Board of REALTORS®, single-family home transactions jumped 18.7% year-over-year, reaching 241 closings. Conversely, the condominium market saw a 7.3% decline in volume, with sales dipping to 316 units. This divergence highlights a shifting landscape where buyer interest remains robust for detached homes, particularly in the mid-to-high-end price brackets.

Single-Family Home Resales

Condominium Resales

Pricing for both property types saw slight downward adjustments compared to the previous year. The median sales price for a single-family home settled at $1,100,000, a modest 1.3% decrease from November 2024. The condominium market felt a more pronounced impact, with the median price dropping 8% to $487,450. This shift in the condo median was largely driven by a 22.4% decrease in sales of units priced above $500,000, while activity remained brisk for more affordable units in the $100,000 to $400,000 range.

Inventory levels and market velocity also reflected these changing conditions. While active inventory for single-family homes tightened by 3.3%, the supply of available condominiums rose by 11.5% to 2,284 units. Properties are taking slightly longer to sell, with single-family homes averaging 27 days on the market and condos reaching 40 days. Despite the slower pace, pending sales for both sectors showed an upward trend, suggesting that buyer demand is holding steady as we move toward the end of the year, particularly in regions like Central Oahu and Waipahu.

Reflecting on these market dynamics, Moe Matsuda, Vice President and Broker-in-Charge at Sachi Hawaii, notes that the current environment offers unique opportunities for both sides of the transaction. “While the increase in single-family home sales demonstrates a resilient appetite for Oahu real estate, the rising inventory in the condo market is providing buyers with much-needed leverage and selection,” said Matsuda. “As we transition into the new year, navigating these specific price pockets and inventory shifts will be the key to success for our clients.”

The City and County of Honolulu has selected the Kobayashi Group to develop a major affordable rental project on 14 acres of city-owned land in Kapolei. Located between Wakea Street and Kamokila Boulevard, the development is slated to provide approximately 750 new units for local families. This initiative stands as one of the most significant affordable housing efforts on Oahu, aimed at addressing the island’s critical housing shortage.

The project will follow the successful model of the adjacent Parkway Village, another Kobayashi Group development that recently began welcoming residents. By leveraging the Governor’s Tenth Proclamation Related to Affordable Housing, the City intends to streamline the development process to deliver these units with urgency. Mayor Rick Blangiardi emphasized that the project is designed to be more than just housing, aiming to create a transit-oriented community where kama’aina can thrive.

The Kobayashi Group and the City are now entering an exclusive negotiation period to finalize pre-development contracts. As Kapolei continues its growth as Oahu’s “Second City,” this 750-unit expansion represents a cornerstone in the state’s long-term strategy to provide high-quality, sustainable rental options for residents across various income levels.