Quick answer
At current rates, renting wins over the full 30-year horizon in Honolulu. Monthly ownership cost $5,596 (vs $$2,850/mo rent) plus HI's 0.29% property tax make the math tough.
Rent vs Buy · HI
Rent vs Buy in Honolulu (2026)
Real math using HI's 0.29% property tax rate, $1,100/year average insurance, and a 6.8% 30-year fixed mortgage. Accounts for opportunity cost — what the down payment would earn invested at 7%.
Last updated: April 23, 2026
Verdict at current rates
Renting wins (30-year horizon)
In Honolulu at HI's tax rates and current 6.8% mortgages, keeping the down payment invested at 7% beats homeownership even after 30 years. The standard advice "buy to build equity" doesn't apply here at today's price-to-rent ratio.
Monthly Cost Breakdown
Buying
$5,596/mo
Mortgage P&I
$700,000 loan, 30yr @ 6.8%
$4,563
Property tax
0.29% of assessed (HI avg)
$211
Homeowners insurance
$1,100/yr HI avg
$92
Maintenance
1%/yr of home value
$729
Cash at close: ~$196,875 ($20% down + fees)
Renting
$2,850/mo
2BR rent (median)
Honolulu market rate
$2,850
Renters insurance
~$15/mo typical
$15
Down payment invested
$175,000 growing at 7%/yr
(opportunity cost)
Monthly gap: $2,746 cheaper than buying. Renter invests that difference.
Year-by-Year Net Position
"Buy wins by" = what you'd clear selling the home minus what the renter has in investments. Positive = buy ahead.
| Year | Home value | Buyer equity (net) | Renter portfolio (net) | Buy wins by |
|---|---|---|---|---|
| Year 5 | $1,014,365 | $-219,809 | +$246,132 | $-465,941 |
| Year 10 | $1,175,927 | $-298,666 | +$368,941 | $-667,607 |
| Year 15 | $1,363,221 | $-317,318 | +$567,901 | $-885,218 |
| Year 30 | $2,123,855 | +$245,481 | +$2,050,459 | $-1,804,977 |
Assumptions
Every rent-vs-buy calculator depends on the assumptions. Here are ours — all transparent, none cherry-picked to bias the answer.
This is a rule-of-thumb calculator. Real decisions involve your specific tax bracket, any HOA, mortgage points, closing-cost negotiations, and exact loan terms.
Frequently Asked Questions
Is it better to rent or buy in Honolulu?
In Honolulu at current mortgage rates (6.8%), renting and investing the down payment beats buying for the full 30-year horizon. Median monthly ownership costs ($5,596) well exceed median 2BR rent ($2,850), and HI's 0.29% property tax makes the math especially tough.
What's the monthly cost of owning a home in Honolulu?
On a median $875K home with 20% down at 6.8% fixed rate: mortgage P&I $4,563, property tax $211 (0.29% of assessed value), homeowners insurance $92 (HI average $1,100/year), and maintenance $729 (1% of home value/year). Total: $5,596/month.
How much down payment do I need to buy in Honolulu?
20% down on a median Honolulu home ($875K) is $175,000. Plus closing costs of roughly 2.5% ($21,875). Total cash-to-close: about $196,875. FHA loans allow 3.5% down ($30,625) but require mortgage insurance that adds ~$341/month.
What's the 10-year cost of renting vs buying in Honolulu?
Over 10 years in Honolulu: renters pay $392,065 in cumulative rent but have $761,006 invested (assuming 7% return on the $175,000 down payment + monthly savings). Buyers have paid $806,206 in total ownership costs and hold $578,096 in home equity. Net: renting is ahead by $667,607 at year 10.