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Puna Real Estate: Affordable Homes and Land, With Eyes Open on Lava (2026)

By Tony Kawaguchi, REALTOR (RS-66616), The Kawaguchi Group, eXp Realty (RB-21841). Selling in Hawaii since 2005. Updated November 13, 2026.

Highway 130 through Pahoa in Puna
Highway 130 near Pahoa, October 2021. Photo: Famartin, CC BY-SA 4.0, via Wikimedia Commons.

Quick answer (updated November 13, 2026): Puna is the Big Island's busiest and most affordable market, with large rural subdivisions east of Hilo. October 2026 median prices (Title Guaranty Hawaii market report) show 79 house sales at a $342,000 median and 60 land sales at a $70,000 median, and Hawaiian Paradise Park and Ainaloa were the island's most active neighborhoods. Lower prices come with real tradeoffs: lava zones 1 and 2 in places, insurance limits, catchment water and private roads.

Puna runs from Keaau and Hawaiian Paradise Park through Pahoa to the lower East Rift Zone of Kilauea. It was subdivided decades ago into thousands of lots, many still vacant, which is why so much of the island's sales volume happens here.

In May 2018, Kilauea's lower East Rift Zone eruption began in Leilani Estates and destroyed 716 homes, according to the USGS. Buying in Puna means understanding that history and choosing a location with eyes open.

Subdivisions and housing

Puna's big subdivisions include Hawaiian Paradise Park (23 sales in October), Ainaloa (13), Fern Acres (5), Hawaiian Acres (4), Hawaiian Shores (4) and Nanawale Estates (3). Homes range from older owner-built houses to newer construction, often on one-acre lots. Expect private or association-maintained roads, catchment water in many areas, and individual wastewater systems.

Puna house median, Oct 2026$342,000 (79 sales)
Puna land median, Oct 2026$70,000 (60 sales)
Island house median, Oct 2026$514,500

These are October 2026 median prices from the Title Guaranty Hawaii market report for Hawaii Island (effective November 2, 2026). Title Guaranty is a Hawaii title and escrow company, and its free monthly report compiles the island's MLS sales statistics by tax district. One month is a small sample, so treat a district median as a starting point and look at actual comparable sales.

Lava cliffs along the Puna coast
The Puna coast. Photo: Thomas Tunsch, CC BY-SA 3.0, via Wikimedia Commons.

Lava zones, insurance and financing

The U.S. Geological Survey divides Hawaii Island into lava-flow hazard zones from 1 (highest) to 9 (lowest). Zone 1 covers the summits and rift zones of Kilauea and Mauna Loa; Zone 2 is the land next to and downslope of those rift zones. The zones describe long-term probability, not a forecast, and USGS is updating the map, which still dates from 1992. Zone matters for insurance and financing. When private insurers decline a home, the Hawaii Property Insurance Association is the market of last resort: it requires at least two declinations, offers dwelling limits from $50,000 to $450,000, and generally costs more for less coverage. Ask your lender and an insurance agent about a specific address before you are in contract.

Parts of Puna, including Leilani Estates and the area around the 2018 fissures, are in Zone 1, and much of the rest is in Zone 2. Some lenders and insurers limit or decline coverage there. Get an insurance quote and lender confirmation in writing before your contingencies end.

Water, roads and permits

Many Puna lots rely on rain catchment tanks. Roads in older subdivisions are often private and maintained by road associations with fees. Some homes were built or expanded without permits, so I check county permit records against what is on the ground. Many rural homes on both islands still use cesspools. State law requires every cesspool in Hawaii to be upgraded, converted or connected to sewer by 2050, so a buyer should know what system a property has and what replacing it would involve.

Waves breaking against the rocky Puna coast
Surf on the Puna coast. Photo: Thomas Tunsch, CC BY-SA 3.0, via Wikimedia Commons.

Vacation rental rules

Hawaii County's 2018 short-term vacation rental law (Ordinance 2018-114) allows new unhosted rentals only in certain districts: the V, CG and CV zones, residential and commercial zones inside the General Plan's resort areas, and RM-zoned condominiums. Outside those areas, only rentals that were operating before April 1, 2019 and hold an annually renewed nonconforming use certificate can continue. Since September 1, 2026 the county also requires every transient vacation rental, hosted or not, to register through its online portal under Ordinance 25-50, with a grace period through the end of 2026. Condo association rules can be stricter than the county's. Most of Puna is residential or agricultural, where new unhosted rentals are not allowed without a nonconforming use certificate.

Nightly rental income is taxed separately from property tax: the state transient accommodations tax is 11% as of January 1, 2026, each county adds a 3% county TAT, and general excise tax is 4.5% in both Maui County and Hawaii County, so plan on about 18.5% of gross rent before income tax.

Land tenure

Most Hawaii Island homes and lots sell fee simple. Leasehold still appears in some Kona-side condos and older subdivisions, and Department of Hawaiian Home Lands homestead leases have their own eligibility rules. On rural lots, I look closely at legal access, road maintenance agreements on private roads, and whether utilities actually reach the parcel.

Getting around

From Hilo International Airport, Keaau is about 15 to 20 minutes, Hawaiian Paradise Park 25 to 30 minutes and Pahoa 30 to 40 minutes. Highway 130 is the main route and can be congested at commute times. These are our own estimates for light traffic, not official figures.

Property taxes

Hawaii County sets rates by class each May. A full-time owner who files for the home exemption is taxed in the Homeowner class, and the exemption also lowers the taxable value. Second homes and vacation rentals are generally taxed in the Residential class, which now has three tiers.

Source: Hawaii County Council Resolution 574-26 notice; tier thresholds from Title Guaranty's 2026-2027 rate sheet.
Hawaii County class (FY July 1, 2026 - June 30, 2027) Rate per $1,000 of net taxable value
Homeowner $5.75
Residential (non-homeowner) $11.10 below $2M; $14.50 from $2M to $4M; $17.00 above $4M
Long-term rental $7.75
Apartment $11.70
Hotel and resort / Conservation $11.55
Agricultural or native forests $9.35
Affordable rental housing $5.75

Illustration only: a home with $350,000 of taxable value would be about $2,012 a year in the Homeowner class before the home exemption, and about $3,885 a year in the Residential class. The exemption amount depends on the owner, so I have the county's numbers checked for the specific property.

Puna real estate FAQ

How much does a house cost in Puna?

The Title Guaranty Hawaii market report shows 79 Puna single-family sales in October 2026 at a median of $342,000, well below the island median of $514,500.

How much is land in Puna?

Puna had 60 vacant land sales in October 2026 at a $70,000 median. Check road access, water and lava zone before you buy a lot.

What is the lava risk in Puna?

Parts of Puna are in USGS lava Zone 1, the highest-hazard zone, and much of the rest is in Zone 2. The 2018 eruption destroyed 716 homes. Check the zone for each parcel and get insurance and lender confirmation early.

Can I get insurance in Puna?

Some private insurers write policies in Zones 1 and 2; otherwise the Hawaii Property Insurance Association is the last resort, with dwelling limits of $50,000 to $450,000 and generally higher costs.

What is Hawaiian Paradise Park?

A large rural subdivision between Keaau and Pahoa, mostly one-acre lots, with private roads. It was the island's most active neighborhood in October 2026 with 23 sales.

What are property taxes on a Puna home?

Using Hawaii County's July 2026 to June 2027 rates, $350,000 of taxable value would be about $2,012 a year in the Homeowner class ($5.75 per $1,000) before the home exemption, or about $3,885 a year in the Residential class used for most second homes and rentals.

Do Puna homes have county water?

Many do not and rely on rain catchment. Test the water and inspect the tank and system before you buy.

Can Tony help me buy in Puna?

Yes. My team is based on Oahu, and for Hawaii Island purchases we help buyers through eXp Realty's statewide network, including referrals to agents who work Puna every day. Call or text (808) 201-3577.

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Sources

Tony Kawaguchi, REALTOR (RS-66616), The Kawaguchi Group, eXp Realty (RB-21841). Selling in Hawaii since 2005. Phone (808) 201-3577. The Kawaguchi Group is based on Oahu; for neighbor-island purchases we work with buyers through eXp Realty's statewide network, including referrals to agents who work those areas every day. This page is general information, not legal, tax, insurance or financial advice. Market statistics are deemed reliable but not guaranteed and can be revised. Drive times are our own estimates for light traffic and will vary. Photos are of the general area and are not listings.

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