2024 Market Recap and 2025 Look Ahead
The Hawaii apartment building market proved both resilient and diverse in 2024, offering opportunities across a range of submarkets. I specialize in the urban Honolulu apartment market, where a total of 33 apartment buildings changed hands this year. I was privileged to be involved in several of these transactions, including the only market-rate apartment building that sold in Waikiki, and I am excited to share key trends and insights.
- Total Sales Volume: The 33 transactions varied from boutique 5-unit buildings to a larger 36-unit property and resulted in a cumulative sales volume exceeding $104 million.
- Price Per Unit: Prices ranged widely from $100,000/unit to $414,286/unit, with an average of approximately $274,000/unit.
Well-located, solidly constructed properties commanded premium pricing, however the majority of transactions were driven by buyers seeking value-add opportunities—older, underperforming buildings with room for renovation
- Submarket Activity: McCully-Moiliili led with the highest number of sales (10 properties), reinforcing its reputation as a highly sought-after investment area.
- Other active submarkets included Makiki-Lower Punchbowl-Tantalus, with six sales, and Diamond Head-Kapahulu-St. Louis, with four.
Looking Ahead to 2025
The Hawaii apartment market remains poised for growth, supported by rising investor demand amid limited inventory. Going into 2025, here are some trends to watch:
- Rising Insurance Costs: Investors should anticipate continually increasing insurance premiums.
- Value-Add Opportunities: Interest in older properties with improvement potential will remain strong as investors target opportunities to reposition assets.
- Location Matters: Properties near employment hubs and transit corridors will continue to attract buyers seeking stable tenant demand.
- Waikiki on the Rise: As competition intensifies, expect rising prices and increased activity in Waikiki, further solidifying its position as a premier submarket.
If you’re considering selling, or simply exploring opportunities in 2025, I’d be happy to provide a deeper analysis tailored to your goals. Please don’t hesitate to reach out—I look forward to helping you navigate Hawaii’s dynamic apartment market!
Full List of 2024 Multi-Family Transactions
