I'm Tony Kawaguchi, and I've spent 20+ years selling real estate in Honolulu. Before you look at a single listing here, it helps to untangle one thing that trips up almost every newcomer: "Honolulu" is three different things at once. It's the city. It's the county that covers the entire island of Oahu. And it's the line that prints on an address from Hawaii Kai to the North Shore. So when someone tells me they want to live in Honolulu, my first question is always the same: do you mean town, or do you mean the island?

Town vs. the rest of the island

Locals say "town" for the urban core: downtown, Kakaako, Ala Moana, Waikiki, and the older neighborhoods that climb the valleys behind them, like Makiki, Manoa, Nuuanu, and Pacific Heights. Head east and you run into Kaimuki, Kahala, Diamond Head, and Hawaii Kai. Go the other way and the city thins out past the airport toward Salt Lake and Moanalua before you reach the central and leeward side.

Close to 70% of the state's residents live on Oahu, roughly a million people, and most of the island's jobs, hospitals, and the University of Hawaii at Manoa sit in or near town. That concentration is the whole reason Honolulu real estate prices work the way they do. The closer you are to the core, the more you pay per square foot, and the more likely you are to be buying a condo rather than a house.

What Honolulu costs right now

Here's the market backdrop as I write this. Across Oahu in September 2026, the median resale single-family home sold for $1,110,000, down 3.9% from a year earlier, and the median condo sold for $523,000, up 2.8% (Honolulu Board of REALTORS, HiCentral MLS data). Houses went under contract in a median 16 days; condos took about 41. Those are island-wide numbers, so read them as a baseline, not a quote. Inside town, the condo picture skews higher because of the newer Kakaako and Ala Moana towers, where two-bedroom units routinely trade well into seven figures.

What that means in practice: in town, your money usually buys a condo or a smaller home on a tight lot. If you want a yard and more square footage for the same price, you trade location for it and move farther out. I walk clients through that trade-off constantly, because it's the single biggest lever on both price and daily life here.

Property taxes are low here, until they aren't

Oahu's owner-occupant property taxes are genuinely low by mainland standards. For the 2026–2027 tax year, the City & County of Honolulu Residential rate is $3.50 per $1,000 of net taxable value. If you live in the home as your primary residence and file for the home exemption, you knock $120,000 off the assessed value, or $160,000 once you're 65 or older. The exemption filing deadline is September 30 for the following tax year, and starting July 1, 2027 the exemption rises to $140,000 ($180,000 at 65+).

The part that surprises people is the Residential A class. If your property is assessed at $1,000,000 or more and you do not have a home exemption on it (think second homes and investment properties), it's taxed at $4.00 per $1,000 on the first million and $11.40 per $1,000 on everything above that. For a non-owner-occupied condo in a Kakaako tower, that's a real number, and I always run it before anyone writes an offer. Tax rates and exemptions change; confirm your specific situation with a licensed tax professional.

The commute, and what the rail actually changed

People underestimate how much geography runs your life here. A home five miles from downtown and a home twenty miles out can feel like different islands at 7:30 on a Monday. The H-1 is the spine, and it backs up in both directions during rush hour.

The Skyline rail is slowly reshaping that calculus on the west and central side. Segment 2 opened in October 2025 and the line now runs from East Kapolei to the Kalihi Transit Center at Middle Street. The final three miles and six stations into downtown and the Civic Center in Kakaako are under construction. HART's official target is 2031, though a July 2026 report from the FTA's oversight consultant flagged a likely slip to 2032. If you're weighing a home in the Kapolei–Pearl City corridor, the rail is worth factoring in. For a deeper look at drive times by area, see my Oahu commute times guide.

Neighborhoods to search in Honolulu

These are the areas I help clients buy in most often across the city. Each has its own price range and housing mix, so tell me how you want to live and I'll point you to the right ones:

• Downtown & Kakaako — new high-rises, walkable, the heart of the condo market
• Ala Moana & Makiki — condos and older low-rises near the biggest shopping and the beach park
• Manoa & Nuuanu — green valley neighborhoods with single-family homes, cooler and wetter
• Diamond Head, Kahala & Hawaii Kai — the east side, where most of the luxury and oceanfront inventory sits
• Moanalua, Salt Lake & Aiea — more attainable homes and condos closer to the airport and central Oahu

If you'd rather just look, you can start the buying process here or search active listings and I'll set up a map-based search for the exact pockets you care about.

A note for condo investors

If you're eyeing a Honolulu condo to rent out, know that short-term rentals (stays of less than 30 consecutive days) are only allowed in resort-zoned areas like Waikiki and a few specific apartment-zoned areas. Most of the condo stock in town is intended for longer-term tenancy. The rules have shifted in recent years and have been through the courts, so before you count on short-term rental income, let's confirm what a specific building and unit actually allow. My Oahu vacation rentals page goes deeper on legal rental zones.

Honolulu FAQ

What is the median home price in Honolulu right now?

Across Oahu in September 2026, the median resale single-family home sold for $1,110,000, down 3.9% from a year earlier, and the median condo sold for $523,000, up 2.8%, according to the Honolulu Board of REALTORS. Those are island-wide figures. In town, the newer Kakaako and Ala Moana towers pull condo prices higher, so I always pull neighborhood comps before we talk numbers.

Is it cheaper to buy a condo or a house in Honolulu?

Almost always a condo. In September 2026 the Oahu median condo price was less than half the median single-family price, $523,000 versus $1,110,000. In town the gap is wider because so few houses come up for sale. Monthly maintenance fees vary a lot from building to building, so they need to be part of the math. If budget is the constraint, I usually start clients in condos.

How much are property taxes on a home in Honolulu?

For an owner-occupied home, the 2026-2027 Residential rate is $3.50 per $1,000 of net taxable value. The home exemption takes $120,000 off the assessed value, or $160,000 if you're 65 or older, and you file by September 30 for the next tax year. Starting July 1, 2027, those exemptions rise to $140,000 and $180,000. Confirm your own numbers with a tax professional.

What is the Residential A tax class in Honolulu?

Residential A applies to residential property assessed at $1,000,000 or more that has no home exemption, which usually means second homes and rentals. For 2026-2027 it's taxed at $4.00 per $1,000 on the first $1 million and $11.40 per $1,000 above that. On a non-owner-occupied condo in a Kakaako tower, that adds up fast, so I run the estimate before anyone writes an offer.

Can I rent out my Honolulu condo as a vacation rental?

Usually not for stays under 30 days. The city's Department of Planning and Permitting treats anything shorter than 30 consecutive days as a short-term rental, and those are only allowed in resort-zoned areas like Waikiki and a few specific apartment-zoned areas. Every seller must also give buyers a short-term rental disclosure form. Building rules can be stricter, so I check the specific unit before you count on rental income.

When will the Skyline rail reach downtown Honolulu?

HART's official target is 2031. Skyline currently runs from East Kapolei to the Kalihi Transit Center at Middle Street, and the last three miles and six stations to the Civic Center in Kakaako are under construction. A July 2026 report from the FTA's oversight consultant put the odds of slipping to spring 2032 at 65%, so I wouldn't buy based on a rail date alone.

How competitive is the Honolulu market right now?

It depends on the segment. In September 2026, Oahu single-family homes sold in a median 16 days and 31% closed above the original asking price. Condos took a median 41 days and only 12% sold over asking, with inventory up 7.8% from a year earlier. Well-priced houses still go fast, while condo buyers usually have more room to negotiate.

Let's find your spot in Honolulu

I live and work here, and most of what I know about these neighborhoods didn't come from a spreadsheet. If you're buying or selling in Honolulu, reach out and let's talk through what you're trying to do. I'm Tony Kawaguchi, REALTOR (license RS-66616), with The Kawaguchi Group at eXp Realty (RB-21841): 20+ years in Hawaii real estate, a team of 20+ agents, and $1B+ in career sales. Start here or send me a message or call 808.201.3577 and we'll get going.

This guide is educational and not personalized tax, legal, or financial advice. For your specific situation, consult a licensed tax professional, attorney, or lender.