Cost of Living in Hawaii

Published: September 16, 2020 12:21 am

Last Updated: September 16, 2020 9:19 am

Living in Hawaii is more expensive than it is on average across the U.S. as a whole. According to data from the Bureau of Economic Analysis, goods and services in the state cost 18.1% more than they do on average nationwide. Compared with all other states, Hawaii has the highest overall cost of living.

In general, living in dense, urban metro areas is more expensive than living in more rural areas. Hawaii is home to two metropolitan areas. The most expensive in the state is the Urban Honolulu metro area, where the cost of goods and services is 24.2% higher than the national average and 6.1% higher than the statewide average.

Hawaii Housing Costs

Housing is one of the largest components of cost of living. In Hawaii, the typical home is worth $587,700, $382,800 more than the national median home value of $204,900. Across the state, the median price of a home built in 1939 or earlier is $668,400, while the median value of a home built in 2014 or later is $697,600.

The typical renter in Hawaii spends $1,566 a month on housing, $543 more than the $1,023 national median monthly rent. Monthly rent for a one-bedroom in the state is $1,179, while the typical rent for a unit with five or more bedrooms is $2,214.

Across the state, 41.7% of occupied homes are rented, more than the 36.2% national average and the fourth highest renter rate of any state.

Hawaii Transportation Costs

Transportation can also be a significant component of cost of living. In Hawaii, 81.0% of commuters drive to work, compared to 85.5% of commuters nationwide. On average, the typical motorist in the state drives 7,547 miles a year. Taking into account average fuel economy and the average cost of gas -- regular fuel cost an average of $3.24 a gallon in Hawaii in mid-2020 -- the average motorist in the state can expect to spend $1,010 on gas alone in one year.

Other transportation costs, like car insurance premiums, can vary by state. In Hawaii, the average car insurance premium is $2,878, far more than the $1,517 national average, according to data from Insure.com. And according to data from the EPI, the average single adult in the state spends $9,934 a year on transportation.

Hawaii Health Care Costs

Out-of-pocket costs and insurance premiums for health care -- assuming at least a basic level of health insurance coverage -- are relatively low in Hawaii. Average health care costs for a single adult in the state total $3,695 per year, compared to the national average of $4,266. For a family of four, average annual health care costs total $11,263 -- $1,687 less than the comparable national average of $12,950.

Hawaii Food Costs

Food is another every day expense that has a significant impact on the overall cost of living in an area. Data from the U.S. Department of Agriculture shows that the cost of food varies from state to state.

In Hawaii, a single adult spends an average of $4,613 on food annually, and a family of four spends $13,004 on average. For context, the nationwide average annual food expenditure is $3,240 for a single adult and $9,354 for a family of four. These estimates are calculated for a nutritionally adequate diet of food purchased at a grocery store for at home preparation.

Hawaii Child Care Costs

For families, child care adds thousands of dollars to overall annual spending. The average annual cost of child care for a 4 year old child in Hawaii is $8,866, in line with the national average of $8,903. However, it costs an average of $17,652 to care for a 4 year old child and an 8 year old child per year in Hawaii compared to the national average of $15,853.

Hawaii Taxes

Few expenses vary as much from state to state as taxes. Accounting for state and federal income taxes, as well as Social Security contributions and Medicare payroll, the average adult working in Hawaii pays $10,330 annually in taxes -- above the national average of $6,542.

Excluding federal taxes and incorporating state and local taxes such as property and sales taxes -- the state and local tax burden in Hawaii is greater than the average across the U.S. as a whole. Per capita state tax collections in Hawaii come out to $5,431 per year, compared to the $3,151 average across all states.

Cost of Living by County or County Equivalent

Just as cost of living varies from state to state, it also varies from place to place within states. In Hawaii, Honolulu County, home to the unincorporated town of Honolulu, has the highest overall cost of living for a family of four at $115,583 per year, above the statewide average of $111,293 per year.

Meanwhile, Hawaii County is the least expensive place in Hawaii. The average annual cost of living for a family of four in the area is just $93,441, $17,852 less than it is across the state as a whole. Hilo is the most populous community in Hawaii County.

Note that monetary figures are rounded to the nearest dollar and calculated differences may not always add up perfectly to the nearest dollar.