Why is the cost of living in Hawaii a problem?

The truth is, Hawaii is consistently ranked as the most expensive state in the United States due to high housing, energy, transportation and food costs.



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Survey results show that Hawaii's high cost of living is the main reason. Food, housing and transportation simply cost too much here. Add high taxes and inflation on top of that and it's no surprise so many people are leaving.

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The roots of Hawaii's housing crises run deep. The state has “the most restrictive land use regulations in the country.” Only 4% of land in the state is zoned for residential housing. Multifamily homes are only allowed on 0.3% of land in the state.

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Cost of Living The most obvious drawback to living in Hawaii is our cost of living. Because everything needs to be imported, the cost of goods is significantly higher than any mainland market.

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A study by Kamehameha Schools cited the high cost of living coupled with a lack of job opportunities and career growth in Hawaii. Hawaii's cost of housing is 214% higher than the national average and the overall cost of living is 84% higher than the national average, according to Payscale.

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What is the minimum wage in Hawaii? The current minimum wage in Hawaii is $12.00 per hour, which is $4.75 higher than the federal minimum wage of $7.25. Tipped employees may be paid below the minimum wage as long as the combined pay from wages and tips is at least $7 more than the minimum wage.

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Before You Move to Hawaii Living in Hawaii has its perks, including year-round warm weather and access to some of the most beautiful natural scenery in the world. The island lifestyle is laid-back and relaxed, and there is a strong sense of community and connection to the land.

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It's so expensive to live in Hawaii that the U.S. Department of Housing and Urban Development considers a family of four in Hawaii making under $93,000 a year to be “low income.” At the other end of the spectrum, $100 in Mississippi is worth $115.74, or 15% more than their incomes suggest.

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Hawaii is the most expensive state in the U.S. while California ranks third. When you compare the cost of living in Hawaii and that of California, you will likely find that Hawaii's cost of living is considerably higher. The cost of living index in Hawaii is 196.3 while that in California is 138.5.

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21 Honest Pros and Cons of Living in Hawaii—from a Resident
  • Con: You May Never Own a Home. ...
  • Pro: It's Easy to Embrace Condo Living. ...
  • Pro: Lots of People Go Off the Grid. ...
  • Con: But It's a Significant Up-Front Investment. ...
  • Con: You May Never Feel Like You Truly “Belong” ...
  • Pro: You'll Discover an Incredible Culture Here in Hawaii.


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What's the most affordable Hawaiian island to live on? The Big Island. With Hawaii's lowest average cost of living (according to MIT's Living Wage project), lowest fair market rents, and lowest typical yearly expenses, the Big Island can be the most economical island in Hawaii.

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Can I move to Hawaii without a job? Yes, you can. Many newcomers do just that. Even so, you will have to find a job as soon as possible due to the high living expenses.

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Hawai?i's high cost of living and lack of housing opportunities were believed to be the top reasons. Researchers also found that almost 40% of the Native Hawaiians they surveyed have thought about or are planning to move from Hawai?i.

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As a result of this exodus, nearly 50% of all Native Hawaiians live outside of Hawaii. California hosts the largest Hawaiian diaspora community, followed by Washington state and Nevada.

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Native Hawaiians and Pacific Islanders were disproportionately experiencing homelessness long before the recent wildfires hit: People experiencing homelessness who identify as Native Hawaiians or Pacific Islanders increased by 19% between 2020 and 2022 (Annual Homelessness Assessment Report Part 1).

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