Quick Answer: More people are moving to Hawaii than leaving. In 2023, 56% of moves were inbound compared to 44% outbound. This positive migration trend supports sustained demand for luxury real estate on the Kona-Kohala Coast, even with the state’s higher cost of living.
Key Takeaways: Kona-Kohala Coast Migration Trends and Luxury Real Estate
- Sustained Inbound Migration: Hawaii continues to attract more residents than it loses, signaling healthy housing demand, particularly in desirable luxury markets like the Kona-Kohala Coast.
- Long-Term Motivations: Job transfers, retirement, and family are the primary reasons for relocation, indicating long-term residency and a stable buyer pool.
- Cost of Living Considerations: While the high cost of living contributes to outbound moves, net inbound migration shows that many still find Hawaii’s lifestyle worth the premium.
- Data-Driven Decision Making: Timely migration data provides valuable insight for buyers and sellers evaluating investment opportunities.
- Market Resilience: Hawaii’s unique appeal and steady inbound movement contribute to the resilience of its luxury real estate market.
Is Hawaii Still a Desirable Place to Live?
After nearly two decades of selling luxury homes on the Kona-Kohala Coast, one of the most common questions I hear is whether Hawaii remains a desirable place to live or if people are leaving due to the cost of living.
Current migration data shows that Hawaii remains a net inbound state. In 2023, 56% of moves were inbound while 44% were outbound. This consistent positive migration supports demand for both primary residences and second homes in luxury communities.
Are More People Moving to or From Hawaii?
Quick Answer: More people are moving to Hawaii than leaving, supporting continued demand and long-term value for luxury properties on the Kona-Kohala Coast.
Private relocation data provides a timely snapshot of migration patterns. The 56% inbound versus 44% outbound ratio reflects a steady flow of new residents establishing roots in the state. For luxury markets such as Hualālai, Mauna Kea Resort, Kūkiʻo, Mauna Lani, and Waikoloa Beach Resort, this translates into a consistent pool of qualified buyers.
When more people want to live in a location than leave it, property values tend to remain stable or appreciate over time due to sustained demand.
Why Are People Moving to Hawaii?
Quick Answer: The primary motivations are job transfers, retirement, and family, all of which suggest long-term residency.
These reasons represent major life decisions rather than short-term moves. Retirees often intend to settle permanently. Professionals relocating for work typically seek stable housing. Families moving to be closer to relatives establish deeper community ties. These motivations strengthen the long-term stability of the luxury housing market.
For high-end communities along the Kona-Kohala Coast, this means buyers are frequently committed to lifestyle changes rather than speculative purchases.
Why Are Some People Leaving Hawaii?
Quick Answer: The cost of living is a primary factor for outbound moves, but it does not outweigh inbound demand.
Hawaii is one of the most expensive states in the country, and affordability challenges are real. However, net inbound migration indicates that for many, the lifestyle, climate, and opportunities justify the expense. In the luxury segment, buyers are typically financially positioned to absorb higher living costs, making the impact on high-end demand less pronounced.
Is the Cost of Living Sustainable for Retirees?
Quick Answer: For financially prepared retirees, the cost of living is often sustainable, particularly when combined with strategic planning.
Many retirees fund their move by selling higher-value properties elsewhere. Others offset expenses with investment income or rental revenue from luxury properties. Beyond finances, many consider quality of life, climate, and community to be significant benefits that justify the cost.
How Do Job Transfers Affect the Luxury Rental Market?
Quick Answer: Job transfers create steady demand for high-end, longer-term rentals, offering a stable income opportunity for luxury property owners.
Professionals relocating to the Big Island often seek furnished, executive-level homes for six to twelve months or longer. This demand can provide consistent occupancy and predictable income compared to short-term vacation rentals. For investment property owners, this represents a viable strategy within the broader luxury rental market.
The Bottom Line: Migration and Your Luxury Investment
Migration patterns are a fundamental driver of real estate demand. Hawaii’s continued net inbound movement, supported by job transfers, retirement, and family relocation, reinforces the strength of the Kona-Kohala Coast luxury market. While the cost of living remains high, the steady flow of new residents underscores the state’s enduring appeal.
For buyers and sellers of luxury property, understanding these broader trends provides valuable context for making informed decisions about timing, pricing, and long-term strategy.
Frequently Asked Questions
Do migration trends directly affect luxury property values?
Yes. Sustained inbound migration increases housing demand, which can support property value stability and appreciation, particularly in limited-inventory luxury communities.
Are certain luxury communities more influenced by migration trends?
Exclusive, inventory-constrained communities often experience stronger demand when inbound migration remains positive, as buyers compete for limited opportunities.
Do retirees make up a significant portion of luxury buyers?
Yes. Retirement is one of the primary motivations for relocation to Hawaii, contributing to steady demand for high-quality homes in resort communities.
How should sellers use migration data when listing a property?
Sellers can align marketing strategies with the motivations of inbound buyers, such as highlighting retirement-friendly features, multi-generational living spaces, or suitability for executive relocation.
Does the national economy influence Hawaii’s luxury market?
National economic conditions can affect buyer confidence, but Hawaii’s unique appeal and the financial strength of many luxury buyers often provide a degree of resilience.