10 Reasons We Love Buying Land in Hawaii

Spanning just 6,423 total square miles of combined land on several Pacific islands, the state of Hawaii feels even smaller with half that area flagged as protected wetlands, rainforest reserves or key watersheds limiting development options. According to the USDA's 2017 Agricultural Census, Hawaii's average farmland value already exceeds $28,500 per acre - a nearly 10X premium over national averages. Yet even these sky-high costs severely undervalue Hawaii's immense property appreciation potential fueled by ongoing extreme housing shortages and non-stop tourism demands as the world's most desirable tropical destination. 

We adore securing distressed or underpriced land across Oahu, Maui, the Big Island and beyond because owning a literal piece of paradise, matched with near guaranteed valuation growth over short and long-term holds, creates truly unmatched residual income opportunity and lifestyle optionality. Hawaii real estate is as rare as it is potentially lucrative. Read on for the 10 reasons we will continue seeking more Aloha State land assets for decades ahead!

Reasons to Buy Land in Hawaii

1. The Scenery is Unmatched

There's no place on Earth quite like Hawaii. The islands feature breathtaking natural scenery from majestic mountain peaks to seaside cliffs and waterfalls. The famous black sand beaches and turquoise waters are beyond compare. Even away from the beaches, Hawaii offers incredible beauty with rainforests, volcanoes, and panoramic vistas. On the Big Island, you can explore Hawaii Volcanoes National Park and see lava flowing into the ocean. 

On Maui, take the legendary road to Hana and marvel at abundant waterfalls cascading down tropical cliffs. Kauai features the stunning Na Pali coastline and Waimea Canyon, known as the Grand Canyon of the Pacific. Oahu has iconic landmarks like Diamond Head crater and the North Shore's big wave beaches. The scenery on each Hawaiian island has its own unique appeal. Landowners in Hawaii are treated to Mother Nature's finest work every day.

2. Enjoy a Laid-back Lifestyle

The aloha spirit is strong in Hawaii. Residents enjoy a casual, relaxed way of life that focuses on spending quality time with family and friends. The slower pace of the islands allows landowners to kick back and appreciate the little things. Backyards can double as personal tropical oases with swaying palm trees, lush gardens, and outdoor living spaces. 

You can take time to enjoy a morning cup of locally grown Kona coffee on the lanai. Days are meant for playing at the beach, hiking to a waterfall, or reading under a shady coconut tree. And when sunset comes, it's time for a backyard luau with tiki torches, ukulele music, and ono grilled foods. Life in Hawaii encourages reconnecting with nature and finding joy in simple pleasures.

3. Lots of Fun Outdoor Activities

Part of the appeal of Hawaiian living is the endless opportunities for outdoor activities all year long. Landowners can swim, snorkel, surf, paddleboard, kayak, sail, fish, hike, bike, golf, explore, and more. On a single day, you could snorkel with sea turtles in the morning, hike through a bamboo forest at midday, and watch the sunset from a surfboard. 

Each island terrain offers diverse adventures - from climbing volcanoes on the Big Island to driving along sheer oceanside cliffs on Kauai. With mild weather and so much natural diversity, every day brings new adventures. Private land provides the perfect home base and place to refuel between exploring the islands.

4. Prime Investment Opportunity

In addition to the enviable lifestyle, land in Hawaii is an attractive investment. The limited availability coupled with high demand keeps real estate values strong. Those who buy land today can expect steady long-term appreciation. And income potential exists through building vacation rentals, farmland uses, or leasing sites for commercial ventures. 

With tourism remaining robust, the economy is less vulnerable to downturns than the mainland U.S. This provides stability and potential for land investments. Whether you want to develop the land or keep it untouched, owning property in Hawaii is a smart financial move for your portfolio.

5. Lower Cost of Living

Surprisingly, Hawaii is not as expensive as many assume when it comes to day-to-day living. Several key factors like energy, transportation, and housing make Hawaii's cost of living comparable or even lower than many urban mainland areas. Landowners benefit from more affordable utilities, groceries, gas, healthcare, and other routine expenses. 

For example, electricity costs about 25% less compared to states like California and New York. Car insurance premiums are well below many other states too. Gas is costlier but you can get by without driving much on the islands. Overall, Hawaii offers a high quality of life for the price. This allows more freedom to enjoy the islands' treasures.

6. Avoid Mainland Winter Weather

For those trying to escape harsh winters, Hawaii's sublime weather is a prime reason to buy land. Average year-round temperatures of 75-85 degrees mean no snow shoveling or bundling up. You can wear shorts and flip flops every day if desired. Outdoor living can be enjoyed all year long without question. The islands have distinct weather zones allowing landowners to choose everything from wet tropical to relatively dry and arid. 

The Kona coast of the Big Island experiences ideal weather patterns with less than 5 inches of rainfall annually. Meanwhile, the Hawaiian tropical rainforests get hundreds of inches per year but still maintain pleasant temperatures. Simply put, Hawaii provides an unbeatable climate.

7. Grow Tropical Plants and Foods

The fertile volcanic soil and favorable climate in Hawaii enable growing all sorts of exotic plants, fruits, and vegetables. Landowners can cultivate their own little slice of paradise by planting tropical species rarely found elsewhere. Papayas, mangos, bananas, orchids, plumerias, bamboo, and more will flourish with ease. 

For the culinarily inclined, ingredients for amazing Hawaiian cuisine are steps from the kitchen. Imagine picking fresh guava or passionfruit to make a smoothie bowl for breakfast. Or use avocados, mango, and pineapple straight from your backyard to make homemade poke. The gardening possibilities are amazing in Hawaii's hospitable environment.

8. Experience the Aloha Spirit

Beyond the scenery and climate, the Hawaiian culture and people make the islands special. Hawaiians are known for being kind, gracious, and friendly. The spirit of Aloha creates an accepting atmosphere with shared goals of living pono (righteous living), celebrating ohana (family), and caring for the land. Becoming part of a community and making new friends comes easily in Hawaii. 

Neighbors often develop into lifelong friends, joining together for impromptu parties, potlucks, sporting events, and more. The language, music, dance, and customs of native Hawaiians also bring a sense of magic to the islands. Real estate ownership provides a chance to truly immerse in the Hawaiian way of life.

9. Enjoy Some of the World's Best Beaches

From the renowned North Shore of Oahu to the gorgeous Road to Hana on Maui, Hawaii is synonymous with iconic beaches. Landowners are never far from these picture-perfect shores boasting every shade of sand from white to black. There are beaches ideal for sunbathing, snorkeling, surfing, fishing, and simply taking in a fiery sunset. 

Hawaii beaches are consistently ranked among the best in the world. On Oahu alone, you could spend months exploring distinct beaches - from popular Waikiki to the surf mecca Pipeline on the North Shore. Each Hawaiian Island takes pride in offering beachgoers endless options for enjoying the Pacific Ocean at its finest.

10. Build the Hawaiian Home of Your Dreams

Perhaps the greatest allure of land ownership in Hawaii is the chance to make the islands your permanent home. Building a custom residence lets you design the ideal tropical oasis. Add a lanai with Pacific views, outdoor kitchen, lava rock accents, and luxurious pool. The opportunities are endless to create a distinctive Hawaiian haven that suits your lifestyle passions and pursuits. 

Maybe your dream home is an oceanfront villa with whale watching decks. Or perhaps it's a plantation-style estate nestled between rainforest and mountains. For many, Hawaii represents the ultimate place to settle down indefinitely. Owning land is the first step toward planting roots in this island paradise.

Final Thoughts

Let's be honest - who doesn't dream of escaping cold winters or the hustle of the city to live on a tropical island? For many people looking to own a vacation getaway, retirement home or even new primary residence, the Hawaiian Islands check all the boxes. Between the picture-perfect scenery, endless outdoor activities, relaxing lifestyle and beautiful year-round weather, Hawaii offers a uniquely appealing setting. The iconic beaches, lush landscapes, and Hawaiian culture create a one-of-a-kind paradise. While buying land in Hawaii represents a major investment, you really can't put a price on having your own piece of island paradise. For those fortunate enough to purchase property and plant roots in this Pacific jewel, Hawaii delivers an unparalleled opportunity to live life to the fullest in an idyllic natural wonderland.

Frequently Asked Questions (FAQs)

What islands can I buy land on in Hawaii?

The main islands where you'll find land for sale are Oahu, Maui, Kauai, Big Island, Molokai, Lanai, and Kahoolawe. For most buyers, Oahu and Maui are the top choices, but all the islands have scenic real estate opportunities depending on what vibe you're looking for.

How much does land typically cost in Hawaii?

Prices are all over the map based on location, acreage, and amenities. But just to give you an idea, vacant land starts around $200K an acre on the low end and $1M+ for premier parcels. Oceanfront will cost you a pretty penny too. Finished building lots run $300K and up. So, buying Hawaii land is definitely a major investment.

What are property taxes like there?

The property tax rates are on the lower side compared to many US states, around 0.27% of assessed value. That shakes out to around $2,700 yearly per $1 million of assessed value. Not too bad!

Are there any special rules for owning land as an out-of-stater?

Yep, there are definitely regulations to know about if you're not a Hawaii resident. The big one is that non-residents can only buy leasehold land, not actual freehold land - lease terms are usually up to 99 years though. There are also covenants on what you can build and restrictions on subdividing agricultural land.

How tough is the permitting and construction process?

Having the right contractor helps, but generally expect permitting and building in Hawaii to be time-consuming and expensive. There are lots of environmental regulations, height limits, setback rules, and red tape to cut through. But the end result is worth it for your own slice of paradise!

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