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Within the United States, Hawaii is considered a paradise where you can live, if you can really afford it.
Living in this tropical paradise can have a big impact on your wallet, so being realistic about all the factors of your cost of living, such as housing, food, transportation and other living expenses, is as important as daydreaming about the beach.
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Let’s dig a little deeper into some of the cities chosen by the Aloha State:
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Quick Summary: Cost of Living in Hawaii
The cost of living calculator for Hawaiian cities often shows that you will need a lot of money to be comfortable compared to many cities in the continental US. GOBankingRates recently conducted a study to determine which cities in Hawaii have the lowest and highest cost of living.
City with the lowest cost of living: Hilo
City with the highest cost of living: Haleiwa
Housing Costs in Hawaii
Housing is the biggest factor driving up the cost of living in Hawaiian cities. Due to limited land availability and high demand, real estate prices are high. Overall, the median home price in the state as of 2024 will be more than $850,000. Renters also face high costs: The average monthly rent for a one-bedroom apartment is estimated to be more than $2,000.
Food and Grocery Costs in Hawaii
Another important component of the cost of living in Hawaiian cities is food and groceries. Most food is imported from the mainland or other countries, resulting in higher prices due to shipping costs. In Honolulu, a gallon of milk costs more than $7 and a loaf of bread about $5.
Although you save money by preparing and preparing your meals at home, if you want to go out to eat, restaurants are also quite expensive, especially in the more touristy metropolitan areas of Hawaii. When all goods and services must be imported from such a far distance, the cost tends to be higher overall, even for the most basic ones.
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Utility and Transportation Costs in Hawaii
If you’re moving to a new city in Hawaii, utilities are another major expense. Electricity rates in Hawaii are the highest in the country, largely due to the state’s reliance on imported oil for power generation. Water, sewer, and trash services are in addition to the overall cost of living adjustments you’ll have to make monthly.
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Transportation costs also contribute to the high cost of living. Gasoline prices in Hawaii are among the highest in the country, often exceeding $5 per gallon. Public transportation, although available, may not be as comprehensive as in mainland cities, leading many residents to rely on personal vehicles.
Health Care and Education Costs in Hawaii
Healthcare in Hawaii is generally more expensive than on the mainland. The high cost of living translates into higher salaries for healthcare professionals, driving up the cost of medical services in a vicious monetary cycle. Many residents also face long waits for appointments with specialists due to a shortage of health care providers.
Education, especially higher education, is also expensive. While Hawaii has a strong public school system, the cost of private education and universities can be prohibitive. The University of Hawaii, for example, charges in-state tuition of more than $12,000 a year, while students in other states pay more than $34,000 a year.
Living paycheck to paycheck in Hawaii
GOBankingRates also recently researched which cities would be most likely and least likely to live paycheck to paycheck. These statistics are based on average income, housing costs, grocery bills, and more, so how much you personally earn would be the biggest indicator of whether or not you’d live through the paycheck cycle.
Average annual estimate | City where you are most likely to live paycheck to paycheck: Makawao | City where you are least likely to live paycheck to paycheck: Kapolei |
Cost of expenses | $30,490 | $32,208 |
Mortgage payments | $77,891 | $65,349 |
Total cost of living | $108,381 | $97,557 |
Average income | $109,385 | $121,768 |
Leftover potential savings | $1,004 | $24,211 |
Final take to go
The bottom line is that living in Hawaiian cities comes with a high price tag, influenced by high monthly mortgage payments, expensive food, high utility bills, and high healthcare and education expenses.
Despite these costs, many residents find the natural beauty, cultural richness, and unique Hawaiian lifestyle worth the financial challenges. If you are considering moving to Hawaii, make sure you can earn a living wage enough to cover your costs comfortably.
For the methodology of this study, GOBankingRates analyzed 6,300 cities in the United States to find the cities with the cheapest and most expensive cost of living in each state. First GOBankingRates found cost of living indices obtained from Sperlings BestPlaces and using the national average spending costs for all residents, obtained from the Bureau of Labor Statistics’ Consumer Expenditure Survey, the average spending cost can be calculated for each city. Total population was obtained from the US Census American Community Survey and the livability index was obtained from AreaVibes. All data was collected and is current as of May 21, 2024.
For paycheck-to-paycheck research, GOBankingRates found the cities in each state where you are most and least likely to live paycheck-to-paycheck. First GOBankingRates compiled cost of living indices for more than 6,400 cities across the United States. For each city, the April 2024 median single-family home value was obtained from the Zillow Home Value Index. Assuming a 10% down payment and using the 30-year national fixed mortgage rate, the average mortgage cost can be calculated. Using the average mortgage cost and the average spending cost, the total cost of living can be calculated. Using the median household income, according to the US Census American Community Survey, the average amount of savings can be calculated after the total annual cost of living. The city with the lowest positive amount of savings per month was recorded as the city most likely to live paycheck to paycheck and the city with the highest savings is the city least likely to live paycheck to paycheck. All data was collected and is current as of June 17, 2024.
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This article originally appeared on GOBankingRates.com: These Hawaii Cities Will Have the Highest and Lowest Cost of Living in 2024
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