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How is the housing market on Oahu?

As we’ve said before, Oahu’s housing market makes for a historically reliable investment. Over the past 40 years, both single family homes and condos have made a steady march in the upward direction.

As we’ve said before, Oahu’s housing market makes for a historically reliable investment. Over the past 40 years, both single family homes and condos have made a steady march in the upward direction.

40 Years of Growth

For the full history, check out the following chart. You can click on the chart to see a spreadsheet where you can have get a better look at the chart and its data.

The upshot is that the Oahu market tends to go up, sometimes a lot and sometimes a little. Every now and then some backpedaling is in order. But overall, there’s one general direction: up.

Luxury Condo Spike

If you look closely at the data, you’ll see that condo prices jumped substantially over the last two years. However, that data is a bit deceiving because two luxury condo developments in Kakaako, Park Lane and Waiea – 1118 Ala Moana, drove almost all of the massive market spike. Together those two projectsĀ have sold 331 units over the last two years ranging from $1.1 million to $22 million, many of them in the $4 million to $6 million range.

Steady As She Goes

Ignoring those outliers for the moment, Oahu has delivered average housing price appreciation of roughly 3% to 6% per year, no matter whether you look at the 1-year, 4-year, 20-year, or 40-year timeframes.

Unlike past cycles of rapid growth followed by a flat or corrective market, since 2011 Oahu has shown very consistent, measured home price appreciation. This has made for a stable and predictable market, substantially benefitting both buyers and sellers.

More Growth

No one knows where the market is headed, of course, but the current signs point to more of the same: steady, plodding, 3% or 4% annual growth rates island wide.

By Luke Korkowski (R)

Real estate attorney. Small business investor. Husband, dad, aspiring surfer. REALTORĀ® and Principal Broker at Square Feet Hawaii.