Whether you are visiting Hawaii or planning to live there, one common theme is that it is an expensive place.
There are quite a few reasons Hawaii is so expensive.
When you understand these reasons, you can start to get a better feel for why Hawaii is priced as it is.
One of the great things about Hawaii is its location, but that is also what leads to these higher costs.
Here are the main reasons Hawaii is so expensive, both to live and to visit.
Why Is Hawaii So Expensive? (Top 10 Reasons)
1. Island Life
When you talk about the appeal, it is going to be hard to beat what Hawaii has to offer.
There is not another state in the US that has the same type of island feel as the state of Hawaii.
Although there are many areas around the country where people can get a glimpse of a tropical paradise, nothing quite compares to Hawaii.
This concept of island life and enjoying your time is one that appeals to people.
Of course, as soon as something becomes appealing and interesting to people, the pricing is going to increase.
Island life is something that most people think would be a good fit for them.
Getting to spend time in the water, hike, be outdoors and sip a cocktail while watching the waves is undoubtedly a reason to celebrate.
Island life is going to continue to keep the pricing of Hawaii high for years to come.
After all, this is something that Hawaii will always have, and it will never change.
If you want warmth, beauty, and the island style, you will have to be in Hawaii to get it.
The beauty of Hawaii is almost unmatched.
The state is unique in that there is the beach, mountains, and even volcanoes.
People will not have enough time for all the outdoor activities they will want to participate in while living in and visiting Hawaii.
Most people will agree that Hawaii is one of the more beautiful places on earth.
Although it is important to be able to find beauty in all locations, it is much easier to find it in a place like Hawaii.
The landscaping, the beach, and the natural lay of the land are going to make Hawaii very appealing to a large group of people.
If you are interested in this type of lifestyle or enjoying your time outside, Hawaii is the place to be.
As you will continue to learn, the more beautiful a place is, the more expensive it is going to be.
The impressive beauty of Hawaii is natural and is not something that can be created.
You will only find this view in certain areas of the world, and unfortunately, it is going to cost a lot of money.
People need to figure out what matters to them in life.
If you care about natural beauty, there is no question that Hawaii is a great place to be.
3. High Price for Housing
Housing is expensive in Hawaii.
Whether you plan to buy a home or rent a home, it is going to be expensive to live in Hawaii.
There are many reasons behind this, and some of it comes down to supply and demand.
There is a large number of people who want to live in Hawaii and build homes in Hawaii.
There are also large groups of people who plan to move to Hawaii as a long-term plan.
People consider living in Hawaii to be a goal of a lifetime.
When a place is a life goal for many people, you will see a large increase in the price to live in this location.
Housing in Hawaii is also expensive because of the limited space in which to build.
You will notice that many areas of Hawaii are protected from building to try and keep as much of the natural beauty as possible.
This, in turn, leads to people have a difficult time trying to find a place to live.
When the demand is high, and the supply is low, the cost of housing is going to increase significantly.
The concept of supply and demand will probably always be in place in Hawaii, and it is a big reason the overall cost of living there is one of the highest in the nation.
If you plan on making the move to Hawaii, make sure that you have several hundred thousand dollars saved up just for the purchase of a small home.
4. Importing Products
Hawaii can be difficult to get to, and it does not have a ton of natural resources for itself.
Much of what is used on the island is imported to the island.
Even if you are doing your basic online shopping, you may notice that much of what is offered for sale cannot be shipped to Hawaii.
That is because the price for shipping is quite high.
Most companies don’t have it in their budget to be able to afford these expensive extra shipping rates to get the products to Hawaii.
If you live in Hawaii, you have to get used to the general idea that your shipping costs are going to be relatively high.
You may also not be able to get the products that you need for your home because they just can’t be imported to Hawaii.
Although those living in Hawaii are not hurting for any basic supplies, there is a certain level of inconvenience that needs to be considered.
This will certainly increase the overall costs that people pay when visiting and living in Hawaii.
Before moving to this state, be sure to consider the types of things that you will need prior to moving.
If those products are very difficult to obtain when living in Hawaii, make sure that you take this into consideration and add it as a potential cost.
5. Utility Costs Are High
The utility costs in Hawaii are higher than in any other state.
This is because of the fuels that Hawaii has to use to get electricity to all the homes on the island.
It is important to understand that these costs can make it impossible for some to be able to afford the cost of living in Hawaii.
Many residents of Hawaii are looking for alternative ways to power their homes through solar energy.
Solar energy is a good solution because it keeps the cost down from the traditional utility bills.
The problem with solar energy is that the panels cost quite a bit of money.
However you look at it, the utility costs for Hawaii are very high.
If you decide to make a move to this state, you will start to care quite a bit about conserving your energy.
The first several-hundred-dollar electric bill you have will make you think quite a bit differently about turning that light off when you leave the room.
Luckily, with the weather being so nice in Hawaii, many people spend time outdoors.
The more time spent outdoors, the easier it is to keep the energy costs down.
You won’t need lights, fans, and electronics if you are enjoying the world around you.
6. Labor Expenses Are High
If you remember correctly, we mentioned that the housing prices are very high in Hawaii.
With these high prices, it is hard for the people who have a bit less money to find a place to live.
Since housing is so expensive, labor workers need to make a certain amount of money just to survive.
Therefore, the labor costs are quite high.
Businesses have had no choice but to pay people more money to work for them.
The people are going to need a place to live and support their families in order for them to come to work.
Of course, when a business has to pay more for labor, they are going to also increase the prices they charge for their services or products.
For laborers who are employed to fix a problem in a home or build a house, their salaries will directly increase the price paid for the home.
The only real way to avoid this is to start finding a way to lower utility and housing costs in Hawaii.
If this is done, the pricing of the labor could start to decrease a bit as well.
Many labor workers want to come to Hawaii because there are usually available jobs.
However, once they consider what is involved in securing housing, it can make anyone change their minds.
With high labor expenses, expect to pay more for products you purchase in stores.
7. Housing Development Regulations
Hawaii is very strict about its housing development regulations.
There are both good and bad things about this, but it does increase the pricing you pay for a home in Hawaii.
Since the community is so restrictive about where you can build and how you can build, you will pay more.
In addition to being able to find a place to build your home, the regulations are also going to require quite a few inspections and time spent getting approval.
All of these processes will add to the overall cost of living in Hawaii.
When regulations and fees can be kept to a minimum, the overall price of housing and cost of living is going to go down.
The positive side to these regulations is that the state of Hawaii is going to keep its beauty.
The beauty being something that can’t be replaced, it is essential to consider this when the regulations and restrictions are put into place.
If you are serious about moving to Hawaii, find a great real estate agent who can stay on top of the market for you.
They will know what a good deal is and what is not, and they can alert you when something interesting comes onto the market.
Another reason people love Hawaii is the climate.
In Hawaii, you are going to have beach weather pretty much every day of the year.
Although the winter months can have some colder temperatures around the higher 60s as a low, you won’t see it much lower than that.
You can expect that the temperatures will be anywhere from 78–88 most days.
For experiencing the world outdoors, this is an ideal climate.
Although there are lots of different people in this world, most are not going to complain about an 80-degree sunny day.
To get great weather like this all year round, it is going to cost quite a bit of money.
When vacationing in Hawaii, you can plan on getting some really great weather days.
If you have noticed, the pricing of trips to tropical-type places is going to be quite a bit more expensive than other trips.
The cost of food in Hawaii is quite high.
Part of the reason food is so expensive is that Hawaii can’t supply enough food with what it has on the land.
Therefore, a good amount of the food will need to be transported into the state.
As we have mentioned before, there are lots of costs involved with bringing things into Hawaii.
When things come into Hawaii, they have labor, taxes, and shipping costs.
This will get absorbed in the pricing of the food.
Therefore, you will pay a percentage more for all of the food that you purchase in Hawaii.
When you visit Hawaii and go out to dinner, you will also be subjected to these higher costs.
Make sure that you are prepared to spend quite a bit on going out to eat as well.
The prices at restaurants are high because of the labor costs and the import costs of the food.
10. High Tax Rates
Taxes are high in Hawaii.
In fact, income taxes are higher than in many other states.
When you first look at the salaries in Hawaii, you may be thinking that they are quite high.
Certainly, the salaries are higher than other areas of the country, but you have to do a bit more math than this.
By the time you calculate the taxes, the salary is going to be quite a bit lower.
In addition, you will have to consider the high cost of living and how far your money is going to go.
In other words, when you plan a move to Hawaii, you must make sure that this is something that you are going to be able to afford long term.
Taxes are a major part of the equation that needs to be considered if you are moving to Hawaii.
How to Save Money in Hawaii
If you are heading to Hawaii for a vacation and to check out the area, it makes sense to see if you can save a bit of money.
There are a few ways you can avoid breaking the bank on your first experience in Hawaii.
For starters, it is a good idea to go later in the winter or early in the fall.
These two times of year tend to be a bit less expensive in Hawaii.
There are lots of places to stay in Hawaii, and many of them are high-end and expensive resorts.
If you are not prepared to spend $1,000 a night, you don’t have to stay in these areas.
There are many mid-level hotels, and you may even be able to use your travel rewards to book these hotels.
When it comes to entertainment in Hawaii, you really don’t have to spend too much money.
You will be able to hike, take a trip to the beach, and even see some free fireworks.
Avoid spending too much on tourist-type attractions as there is plenty to do for a very low cost.
Another great thing for both vacationers and residents of Hawaii is the public transportation system.
Owning a car in Hawaii can be expensive, and it may not be necessary.
Depending on how the town is built, you may be able to see plenty just by walking from one location to the next.
These same tips can hold true for those who are moving to Hawaii.
Once you are there and enjoying your lifestyle, you can find plenty of free ways to pass the time.
If living or traveling to Hawaii is a life goal for you, don’t let the pricing discourage you ultimately.
There are ways to live in this part of the world affordably.