Is Buying Land in Hawaii Still a Smart Investment in 2026?

Hawaii land investing is a study in extremes: a globally iconic place with finite acreage, complex regulations, and pricing that often behaves differently than the mainland. The Hawaiian Islands span just 10,931 square miles in total area, so “more supply” is never an easy solution. That scarcity can support long-term value—especially for well-located parcels with clear legal access, utilities, and buildable entitlements—but it also raises the stakes on due diligence, insurance, and climate and hazard exposure.

Land can still play a role as a long-horizon, real-asset hedge in a diversified portfolio. The key is to underwrite conservatively, buy with a durable use case (housing, agriculture, conservation, or future development where realistic), and plan for longer holding periods that can smooth out tourism cycles and interest-rate swings.

The Allure of Hawaii Real Estate in 2026

Hawaii continues to attract buyers for the same fundamental reasons—limited land, global demand, and an economy that benefits from visitor spending—while also offering unique angles for investors evaluating farmland and vacant land.

1) Scarcity can support pricing power

Hawaii’s limited land base concentrates demand into relatively small developable areas. On the agricultural side, cash rent data underscores how competitive land economics can be. In 2025, Hawaii cropland cash rent averaged $295 per acre, ranking third highest in the U.S., according to the USDA National Agricultural Statistics Service. Irrigated ground was even more expensive: Hawaii irrigated cropland cash rent averaged $443 per acre in 2025, ranking second highest, per the USDA National Agricultural Statistics Service.

2) Land values sit in a high-priced region relative to the U.S.

Nationally, farm real estate has been trending higher, which matters when you benchmark Hawaii against broader replacement-cost and opportunity-cost metrics. U.S. average farm real estate value reached $4,350 per acre in 2025, up 4.3% from 2024, according to the USDA National Agricultural Statistics Service. The U.S. average also increased by $180 per acre in 2025—its fifth consecutive annual increase—per the USDA National Agricultural Statistics Service.

Zooming out to the West, the Pacific region average cropland value was $9,830 per acre in 2025, and it was more than 4 times higher than pastureland value, according to the USDA Economic Research Service. That regional premium helps explain why Hawaii pricing often looks “too high” to mainland buyers—yet still trades within a broader coastal-West valuation context.

3) Long-term appreciation trends can be compelling—but not uniform

Farmland’s longer-run performance has remained strong even through changing rate environments. Over the five-year period from 2019 to 2024, U.S. farmland values posted a 5.8% compound annualized growth rate, per the USDA Economic Research Service. In 2025 specifically, cropland values rose by $260 per acre year-over-year and no states recorded a decline, according to the USDA National Agricultural Statistics Service.

That said, Hawaii can move differently than the national averages. For example, Hawaii cropland cash rents declined by more than 5% in 2025 after years of sharp growth, per the USDA National Agricultural Statistics Service. For investors, that’s a reminder to model income and rent growth cautiously—especially if you’re underwriting agricultural returns rather than pure land appreciation.

The Challenges of Hawaii Land and Real Estate Investing

Hawaii can reward patient investors, but it also punishes assumptions. Before you buy, pressure-test these realities:

• High entry prices and thin margin for error: The buy-in can be steep across residential, resort, and buildable vacant land—especially near the coast.
• Limited inventory and entitlement complexity: Zoning, shoreline rules, water rights, and environmental reviews can meaningfully constrain what you can build (and how quickly).
• Tourism sensitivity: Visitor-driven income (short-term rentals, hospitality, retail) can swing hard during recessions, geopolitical shocks, or public health disruptions.
• Natural hazard and insurance risk: Hurricanes, flooding, wildfire, volcanic activity, and sea-level rise can impact insurability, operating costs, and long-term desirability—sometimes parcel by parcel.
• Carrying costs and liquidity: Some land types have limited near-term use, and resale can take longer than on the mainland—especially for off-grid, landlocked, or unentitled parcels.

Island-by-Island Considerations for Land Buyers

Oahu: Deep demand, premium pricing

Oahu concentrates population, jobs, and many of the state’s most established visitor corridors. That supports year-round demand but also pushes pricing higher and limits the number of truly buildable, well-located lots. Investors often focus on infill opportunities, redevelopment, or land with clean entitlements rather than raw acreage.

Maui: High-end demand with constrained supply

Maui blends luxury second-home demand with strict community and environmental constraints. If you’re underwriting Maui land, rely on current, local comps—not mainland intuition. As one concrete snapshot, Maui County’s median land price per acre is $81,967, with 288 properties for sale totaling 5,949 acres, according to Land.com Market Insights. That scale of inventory and pricing illustrates both the opportunity and the competition for desirable parcels.

Hawaii Island (Big Island): More space, more variance

The Big Island generally offers more acreage at lower price points than Oahu or Maui, but parcel quality varies dramatically with microclimate, lava zones, access, and utilities. This is where disciplined screening matters most: confirm zoning, road access, water source, flood and lava risk, and realistic timelines for development.

Kauai: Natural beauty, development limits

Kauai’s appeal is its preserved character and striking landscapes. That same preservation mindset can also limit new large-scale projects, making entitlements and community considerations a central part of underwriting. Many buyers here prioritize long-term hold value and lifestyle utility over aggressive development assumptions.

Is Hawaii Land a Good Investment? A Practical Framework

Hawaii land can be a good investment when you buy scarcity that has a durable, provable use. Use this framework to decide:

• Start with the use case: Primary residence, second home, rental, agriculture, conservation, or future development. Land without a realistic use can become an expensive “option” with unpredictable timing.
• Underwrite income conservatively: Even in high-rent environments—like Hawaii’s 2025 cropland cash rent averages of $295 per acre and irrigated averages of $443 per acre—rents can move down as well as up (Hawaii rents fell more than 5% in 2025) per the USDA National Agricultural Statistics Service and the USDA National Agricultural Statistics Service.
• Benchmark against broader land markets: National farm real estate averages ($4,350 per acre in 2025, up 4.3%) and regional cropland levels (Pacific average $9,830 per acre) give context for replacement cost and relative value, per the USDA National Agricultural Statistics Service and USDA Economic Research Service.
• Plan for a long hold: Farmland’s multi-year trend—5.8% CAGR from 2019–2024—suggests why patience matters, per the USDA Economic Research Service.
• Do Hawaii-specific diligence: Verify zoning, water, access, coastal setbacks, hazard zones, and any Native Hawaiian land rights or local overlays that affect use and resale.

The Bottom Line

Hawaii remains one of the world’s most supply-constrained real estate markets, and that scarcity can support long-term land values. At the same time, today’s investors must underwrite with modern realities in mind: climate and hazard exposure, tighter development pathways, and income variability—even in markets where cash rents and land values rank among the highest in the nation.

If you can afford the buy-in, commit to careful due diligence, and hold through cycles, Hawaii land can serve as both a lifestyle asset and a long-term store of value. If you need quick liquidity or you’re relying on aggressive rent growth, Hawaii can be an unforgiving place to learn.

Frequently Asked Questions (FAQs)

How expensive is Hawaii land compared with the mainland?

Hawaii often prices at a premium due to limited buildable land and high demand. For context, U.S. average farm real estate value was $4,350 per acre in 2025, per the USDA National Agricultural Statistics Service, while Pacific region average cropland value was $9,830 per acre in 2025, according to the USDA Economic Research Service. Specific Hawaii counties and parcels can exceed these benchmarks substantially.

What do Hawaii farmland rents look like right now?

In 2025, Hawaii cropland cash rent averaged $295 per acre (third highest nationally) and irrigated cropland averaged $443 per acre (second highest), according to the USDA National Agricultural Statistics Service. However, Hawaii cropland cash rents declined by more than 5% in 2025 after years of sharp growth, per the USDA National Agricultural Statistics Service.

Are farmland values still rising in the U.S.?

Yes. Cropland values rose by $260 per acre year-over-year in 2025, and no states recorded a decline, according to the USDA National Agricultural Statistics Service. The U.S. average farm real estate value also increased by $180 per acre in 2025, marking the fifth consecutive annual increase, per the USDA National Agricultural Statistics Service.

What’s a real example of Maui land pricing and inventory?

Maui County’s median land price per acre is $81,967, with 288 properties for sale totaling 5,949 acres, according to Land.com Market Insights. Always confirm whether parcels are buildable, entitled, and properly serviced before using list data to underwrite a deal.