Waikiki Real Estate Market

The Waikiki real estate market is facing mixed signals as it continues to combat the lingering effects of the economic recession. According to a March 24, 2010 article in the Honolulu Advertiser, rents in the city of Honolulu remain the second highest in the United States. This piece found that “A modest increase in rent for a typical two-bedroom home in Honolulu last year helped the city maintain its ranking as the second most expensive rental market among 210 U.S. metropolitan areas, according to a national survey. Fair market monthly rent for a two-bedroom home on , or Honolulu County, rose 4.5 percent in the fourth quarter of last year to $1,704 from $1,631 in the same period a year earlier…” The article, written by Andrew Gomes, continues to say that “Based on Honolulu’s median price and interest rates, it would take an annual income of $134,328 to afford such a home assuming a 10 percent down payment and conventional mortgage underwriting guidelines that suggest no more than 28 percent of household income be used to pay the mortgage, property taxes, and insurance.”