Keaau is home to the best residential real estate investment market in Hawaii.
The 96749 zip code in Keaau presents the greatest opportunity for the best real estate investments among the 176 individual real estate markets in Hawaii we evaluated. We looked at property values, population trends, and six other metrics for each market. We used that data to calculate each market's InvestScore.
5 best places to invest in Hawaii
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1. Keaau
We've identified the 96749 zip code in Keaau as Hawaii's best real estate investment market. Here's why.
🔎 Key data about Keaau
| Data point | Value | Rank in state (of 176 markets) |
|---|---|---|
| Zip code | 96749 | N/A |
| InvestScore | 100 | Highest |
| Typical property value | $454,417[1] | 3rd lowest |
| Five-year appreciation | 56.68%[2] | 11th highest |
| Household income | $76,762[3] | 37th highest |
| Affordability ratio | 5.9 | 3rd most affordable |
| Five-year population growth | 4.0%[4] | 15th highest |
| Unemployment rate | 3%[5] | 3rd lowest |
| Property taxes | $1,219[6] | 6th lowest |
| Educational attainment | 22.6%[7] | 40th highest |
Keaau (zip code 96749) is the best residential real estate investment market in Hawaii. It has the 11th highest property value appreciation among markets we evaluated, with a 56.68% appreciation of the typical property over the last five years.
Keaau is the 3rd most affordable market among the 176 Hawaii markets we evaluated, with an affordability ratio of 5.9.
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2. Waikoloa
The 96738 zip code in Waikoloa is the runner-up spot for the best real estate investments in Hawaii.
🔎 Key data about Waikoloa
| Data point | Value | Rank in state (of 176 markets) |
|---|---|---|
| Zip code | 96738 | N/A |
| InvestScore | 90.7 | 2nd highest |
| Typical property value | $836,826[8] | 14th lowest |
| Five-year appreciation | 78.44%[9] | the highest |
| Household income | $97,083[10] | 21st highest |
| Affordability ratio | 8.6 | 18th most affordable |
| Five-year population growth | 23.1%[11] | highest |
| Unemployment rate | 9.7%[12] | 41th lowest |
| Property taxes | $1,480[13] | 12th lowest |
| Educational attainment | 32.3%[14] | 24th highest |
The 96738 zip code in Waikoloa features a typical property value of $836,826, the 14th lowest in the state.
Property values have appreciated 78.44% over the past five years, the the highest increase among evaluated markets in the state. Waikoloa homes have an affordability ratio of 8.6, the 18th most affordable in the state.
3. Ewa Beach
The 96706 zip code in Ewa Beach comes in at No. 3 in our ranking of the best residential real estate investment markets in Hawaii.
🔎 Key data about Ewa Beach
| Data point | Value | Rank in state (of 176 markets) |
|---|---|---|
| Zip code | 96706 | N/A |
| InvestScore | 87.3 | 3rd highest |
| Typical property value | $850,223[15] | 17th lowest |
| Five-year appreciation | 33.58%[16] | 27th highest |
| Household income | $118,316[17] | 6th highest |
| Affordability ratio | 7.2 | 6th most affordable |
| Five-year population growth | 15.6%[18] | 3rd highest |
| Unemployment rate | 3.5%[19] | 8th lowest |
| Property taxes | $2,059[20] | 26th lowest |
| Educational attainment | 29.7%[21] | 30th highest |
With a typical property value of $850,223, Ewa Beach's 96706 zip code features the 17th lowest property values in the state.
Ewa Beach homes have an affordability ratio of 7.2, the 6th most affordable among the markets we evaluated.
4. Hilo
The 96720 zip code in Hilo ranks No. 4 among Hawaii's residential real estate investment markets.
🔎 Key data about Hilo
| Data point | Value | Rank in state (of 176 markets) |
|---|---|---|
| Zip code | 96720 | N/A |
| InvestScore | 87 | 4th highest |
| Typical property value | $496,726[22] | 6th lowest |
| Five-year appreciation | 48.30%[23] | 17th highest |
| Household income | $75,265[24] | 17th highest |
| Affordability ratio | 6.6 | 5th most affordable |
| Five-year population growth | 3.9%[25] | 16th highest |
| Unemployment rate | 6.6%[26] | 35th lowest |
| Property taxes | $1,086[27] | 3rd lowest |
| Educational attainment | 34.1%[28] | 21st highest |
Property values in Hilo's 96720 zip code have seen the 17th highest increase among evaluated markets in the state, with an appreciation of 48.30% over the past five years.
Hilo's affordability ratio of 6.6 makes it the 5th most affordable among the 176 markets we evaluated.
5. Wailuku
The 96793 zip code in Wailuku rounds out our top five residential real estate investment markets in Hawaii.
🔎 Key data about Wailuku
| Data point | Value | Rank in state (of 176 markets) |
|---|---|---|
| Zip code | 96793 | N/A |
| InvestScore | 86.5 | 5th highest |
| Typical property value | $932,554[29] | 23rd lowest |
| Five-year appreciation | 59.97%[30] | 6th highest |
| Household income | $107,101[31] | 6th highest |
| Affordability ratio | 8.7 | 20th most affordable |
| Five-year population growth | 2.2%[32] | 20th highest |
| Unemployment rate | 4.1%[33] | 15th lowest |
| Property taxes | $1,152[34] | 5th lowest |
| Educational attainment | 28.4%[35] | 33rd highest |
Property values in Wailuku's 96793 zip code rose 59.97% over the last five years, ranking the city 6th highest among evaluated markets in Hawaii.
Wailuku homes have an affordability ratio of 8.7, the 20th most affordable among the markets we evaluated.
Investing in residential real estate can be one of the best passive real estate investments in Hawaii.
Residential real estate offers accessible passive income and the potential to compound your original investment.
Renting out residential units is the top way to invest in real estate. House hacking also offers a great opportunity for passive real estate investment income.
How we rank residential real estate markets in Hawaii
To determine the best real estate investments in Hawaii we evaluated 176 markets on eight metrics, and then assigned an InvestScore based on their weighted and combined rankings. Each market corresponds to a specific zip code in Hawaii.
What is InvestScore?
InvestScore is a score on a scale of 0 (worst in state) to 100 (best in state) that estimates the residential real estate investment potential of a given market. It takes into account a suite of key data points for each city.
- Typical property value: This measures the typical home value in this zip code, according to the Zillow Home Value Index. It reflects the typical value for homes in the 35th to 65th percentile range, including all homes, with the numbers smoothed and seasonally adjusted. We prefer lower property values, which indicate both more room for growth and a greater ease of purchase. We assign a weight of 20% to typical property values.
- Property value appreciation: This measures how much property values have increased in the area over the past five years, according to the Zillow Home Value Index. We prefer a higher appreciation, as it indicates better returns on housing. However, past performance isn't indicative of future results. We assign a weight of 20% to property value appreciation.
- Median household income: This is the inflation-adjusted median household income in the zip code, according to U.S. Census American Community Survey data. We prefer a higher household income, as it indicates local residents have more income to spend on housing. We assign a weight of 10% to median household income.
- Affordability ratio: This is the ratio of the typical home value to the median household income in the area. A lower ratio is better because it means more households can afford a home, which indicates higher demand. We assign a weight of 15% to the affordability ratio.
- Population growth: This is how much the area's population has grown over the past five years, according to U.S. Census estimates. Higher is better, as it indicates residents are moving into the area at a rapid clip. We assign a weight of 10% to population growth.
- Unemployment rate: This is the unemployment rate in the area, according to U.S. Census data. We prefer a lower rate, as it indicates the availability of steady employment in the area, meaning residents will find it much easier to afford homes. We assign a weight of 15% to unemployment rate.
- Property tax: This is the median real estate property tax paid in the area, according to U.S. Census estimates. We assign a weight of 10% to property tax.
- Educational attainment: This is the percentage of residents in the area that have obtained a bachelor's degree or better, according to U.S. Census estimates. We prefer a higher rate because it indicates local residents who have higher earning potential and thus should be able to afford homes. We assign a weight of 15% to educational attainment.
🚨 Disclaimer: The information contained in this article isn't intended as, and shall not be understood or constituted as, financial advice. The information in this article isn't a substitute for financial advice from an investment professional or real estate agent who is aware of the facts and circumstances of your financial situation or the specifics of any individual property.
