Blog post from Original Video in May 2025
Why Real Estate Appreciation on Hawaii’s Big Island Stands Out
If you’re dreaming of investing in paradise, the Big Island of Hawai‘i might be calling your name — and not just for its views. Unlike many parts of the mainland where real estate appreciates slowly over time, the Big Island is one of those rare markets where appreciation can happen quickly and significantly.
Think of places like Santa Barbara, La Jolla, or Atherton — markets where homes not only hold their value but can skyrocket in price in just a few short years. The Big Island is right there with them. In many areas, it’s not unusual to see double-digit appreciation in a single year.
Real Numbers, Real Appreciation
Each month, Dan Polimino of KW Big Island and The Hawaii Team shares updated stats provided by First Hawaii Title. These reports offer a snapshot of what’s happening across the island — and the numbers for 2025 are impressive.
Here are a few takeaways from the latest data:
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Island-wide median sales price (residential): $600,000
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Sold listings: Down slightly, but not significantly (only a 2% year-over-year dip in single-family home sales)
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Total sales volume: Just $2 million off from the same period in 2024 — nearly flat
Spotlight on South Kohala: A Hotbed for Appreciation
For those interested in short-term vacation rentals or second homes, South Kohala is the area to watch. Home to resort communities like Waikoloa Beach, Mauna Lani, and Mauna Kea, this region is showing particularly strong growth:
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Single-family homes:
2024 average price — $1.042 million
2025 average price — $1.2 million
That’s a 15% increase in just one year. -
Condos:
2024 average price — $1.065 million
2025 average price — $1.135 million
That’s a solid 7% jump.
These numbers show that the west side of the Big Island — especially in resort communities — is where appreciation is really happening.
Investment Strategy: Cash Flow and Appreciation
Many investors focus solely on cash flow from short-term rentals — and while that’s important, Dan emphasizes that appreciation plays a key role in the equation, especially in a market like Hawai‘i.
In addition to rental income, a home that gains 7–15% in value in just one year is a serious wealth-building asset.
“Some people say, ‘Dan, I don’t count appreciation into the equation.’ That’s not me. I absolutely count it,” says Dan.
Want the Full Report?
If you’re interested in buying a short-term vacation rental or second home on the Big Island — or just want to see the full monthly data — Dan and The Hawaii Team are happy to share.
📞 Call or text Dan directly: 808-913-0899
🌐 Visit: thehawaiiteam.com
