Honolulu is Hawaii’s capital city on the island of Oahu. It’s a beautiful paradise with clean beaches, rich culture, and warm weather all year. The city combines natural beauty with city features, making it a very desirable place to live.
Before you pack your bags and buy a one-way ticket to paradise, you need to understand how much it costs to live there. According to recent data from PayScale, living in Honolulu costs 85% more than the national average, making it one of the most expensive cities in the United States.
This high cost means you need careful planning before moving. For this guide, we have put together data from a number of different sources like RentCafe, Numbeo, PayScale, US Census Data, and many more. This guide looks at all the expenses you’ll face, giving you a real picture of what it takes to live comfortably in Honolulu.
Housing Costs
Housing represents the most significant expense for Honolulu residents, with costs anywhere from 28.1% – 219% higher than the national average according to our research among all platforms, depending on the rental property.
Rental Market
According to data from Apartments.com, the Honolulu rental market shows:
- Studio apartments: $1,493/month (355 sq ft average)
- One-bedroom apartments: $1,687/month (450 sq ft average)
- Two-bedroom apartments: $2,164/month (740 sq ft average)
- Three-bedroom apartments: $4,233/month (1,038 sq ft average
Rental prices can vary significantly based on neighborhood, property age, amenities, and proximity to beaches or downtown areas. The most expensive neighborhoods include Waikiki, Kakaako, and parts of downtown Honolulu, while more affordable options can be found in areas like Kalihi, Salt Lake, and parts of Ewa Beach.
Home Ownership
The typical home in Honolulu now costs $630,000. This is almost five times higher than the average home price in some U.S. states. If you buy a home here, you can expect to pay between $6,000 and $9,000 each month for your mortgage. The exact amount depends on how much money you put down first, what interest rate you get, and how much you pay in property taxes.
Neighborhood Cost Variations
Most Expensive Neighborhoods in Honolulu:
- Ala Moana-Kakaako: $3,480/month (642 sq ft average)
- Diamond Head-Kapahulu-St Louis: $3,341/month (607 sq ft average)
- Waikiki: $3,221/month (604 sq ft average)
- Moanalua: $2,562/month (510 sq ft average)
- Aliamanu-Salt Lake-Foster Village: $2,397/month (520 sq ft average)
- Downtown Honolulu: $2,310/month (541 sq ft average)
Most Affordable Neighborhoods in Honolulu:
- Palolo: $950/month (175 sq ft average)
- Kaimuki: $999/month (183 sq ft average)
- Liliha-Kapalama: $1,388/month (489 sq ft average)
- Kuliouou-Kalani Iki: $1,412/month (350 sq ft average)
- Hickham: $1,483/month (505 sq ft average)
Neighborhoods with Most Available Rentals in Honolulu:
- Waikiki: Highest concentration of rental options
- Diamond Head-Kapahulu-St Louis: Numerous rentals available
- McCully-Moiliili: Good availability at moderate prices ($2,002/month, 433 sq ft average)
Utilities and Internet
Hawaii’s utility costs are 71% higher than the national average according to PayScale data, reflecting both the state’s isolated geographic position and tropical climate.
Electricity
Hawaii has the highest electricity rates in the nation, averaging $0.32 per kilowatt-hour compared to the national average of $0.14. The average monthly energy bill in Honolulu is $342.12, significantly higher than mainland averages. This breaks down approximately to:
- Studio/one-bedroom: $250-$350 monthly
- Two-bedroom: $300-$450 monthly
- Single-family home: $400-$600+ monthly
Air conditioning usage significantly impacts these costs.
Water and Sewer
Water bills typically range from $80-$150 monthly for a family of four, while sewer fees add approximately $70-$100 per month.
Internet and Mobile Services
The average phone bill in Honolulu is around $90 monthly, which typically includes:
- High-speed internet: $45 monthly
- Cable TV packages: $40 monthly
- Mobile phone plans: $30 per person monthly
Combined utility expenses for a modest apartment can easily exceed $700-$900 monthly, representing a substantial portion of living expenses.
Transportation Expenses
Transportation costs in Honolulu are 33% higher than the national average according to PayScale data, reflecting Hawaii’s isolated position and the premium placed on imported goods and services.
Gasoline
Hawaii consistently maintains some of the highest fuel prices nationwide. According to current data, gas in Honolulu costs approximately $4.51 per gallon, significantly higher than mainland averages.
Public Transportation
Honolulu offers an extensive bus system known as “TheBus”:
- Single ride: $3.00
- One-day pass: $7.50
- Monthly pass: $80.00
The upcoming rail transit system promises to expand public transportation options, though its completion timeline and final fare structure remain in development.
Vehicle Ownership
- Car insurance: $1,200-$2,000 annually (approximately 25-40% higher than mainland averages)
- Vehicle registration: $300-$500 annually (based on vehicle weight)
- Parking: $150-$300 monthly for reserved spots in urban areas
Mainland Vehicle Shipping
If relocating from the continental United States, vehicle shipping costs typically range from $1,500-$3,000 one-way, an important consideration in your moving budget.
Grocery and Food Costs
Hawaii imports approximately 85-90% of its food supply, resulting in grocery costs that are 20% higher than the national average according to PayScale data.
Typical Grocery Prices
- Gallon of milk: ~$7.83
- Dozen eggs: $7.94
- Loaf of fresh white bread (1.1 lbs): $6.73
- 2.2 lbs of white rice: $9.30
- 2.2 lbs of chicken breast: $18.95
- 2.2 lbs of beef round: $22.20
- 2.2 lbs of bananas: $4.07
- 2.2 lbs of apples: $6.51
- 1 head of lettuce: $4.96
- Bottled water: $2.96
Data according to Numbeo
Dining Options
- Fast food meal: $10-$15 per person
- Casual restaurant: $20-$30 per person
- Mid-range restaurant: $50-$80 per person
- Fine dining: $100+ per person
Data according to PayScale
Healthcare and Insurance
Healthcare costs in Honolulu are 25% higher than the national average according to PayScale data, though Hawaii’s Prepaid Health Care Act requires employers to provide health insurance to employees working 20+ hours weekly.
Health Insurance Premiums
- Individual plans: $400-$800 monthly
- Family plans: $1,200-$2,400 monthly
Out-of-Pocket Expenses
- Doctor’s visit: $176.14 (average)
- Dentist visit: $144.84 (average)
- Optometrist visit: $161.33 (average)
- Prescription drugs: $305.80 (average)
- Veterinary visit: $88.58 (average)
- Emergency room visit: $700-$2,500 before insurance
Childcare and Education
Families with children face substantial additional expenses in Honolulu.
Childcare
- Daycare: $1,000-$1,500 monthly per child
- Preschool: $800-$1,200 monthly
- After-school programs: $300-$600 monthly
K-12 Education
- Public schools: Free (though ranked 37th nationally in quality)
- Private schools: $12,000-$30,000 annually
Higher Education
- University of Hawaii at Mānoa: $12,000 annually (in-state); $34,000 (out-of-state)
- Community colleges: $3,000-$4,000 annually
Entertainment and Lifestyle
The Honolulu lifestyle offers numerous recreational opportunities, though many come with associated costs.
Fitness and Recreation
- Gym memberships: $50-$120 monthly
- Yoga classes: $20-$25 per session
- Surfboard rental: $20-$50 daily
- Hiking: Primarily free, with parking fees at some trailheads
Island Activities
- Inter-island flights: $75-$200 round-trip
- Luau experience: $120-$200 per person
- Snorkeling equipment rental: $15-$30 daily
- Beach essentials: Free public beaches, though equipment purchases are necessary
Cultural Events
- Concert tickets: $50-$150
- Museum admissions: $15-$30
- Festivals: Many free community events occur throughout the year
Tips for Managing the Cost of Living in Honolulu
Despite the high cost of living, many strategies can help manage expenses in Honolulu:
Housing Strategies
- Consider neighborhoods beyond tourist areas
- Explore shared housing arrangements
- Negotiate longer lease terms for potential discounts
Daily Expenses
- Shop at farmers’ markets for local produce
- Take advantage of “kama’aina” (local resident) discounts
- Utilize public transportation rather than car ownership
- Install solar panels to reduce electricity costs
Financial Planning
- Maintain a detailed budget accounting for Hawaii’s higher costs
- Build a larger emergency fund (6-9 months recommended)
- Research tax implications of Hawaii residency
Many residents find that lifestyle adjustments, combined with Honolulu’s natural amenities and reduced need for heating costs, help offset some expenses.
Conclusion
Living in Honolulu undeniably comes with a high price tag—housing, groceries, utilities, and everyday expenses can quickly add up. But for many, the vibrant island lifestyle, breathtaking natural surroundings, and welcoming community make it more than worth the cost. You can find out more about living in Honolulu here.
With thoughtful planning, smart budgeting, and a realistic understanding of what to expect, you can make the move to paradise with confidence. Start early, do your research, and consider creative ways to save, like choosing more affordable neighborhoods, taking advantage of local discounts, or going car-free.
If you’re ready to take the leap and start your new life in Honolulu, make your move smoother and stress-free by contacting Ewa Moving Co.—your local experts in relocating to Hawaii.
