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Why the Cost of Living In Hawaii Is So High?

November 15, 2011
Mayinc
Hawaii ranks in the top 5 in every cost of living category. From Gas to real estate the cost is high to live in Hawaii. A big piece of the puzzle is the fact that Hawaii is an island thus has to import everything but it is easy to forget that it’s also a tropically paradise. This natural drives the cost of things a bit higher. Knowing this it is still worth to explore what effects the prices of these items so high.

The Cost of Food

Food is very expensive in Hawaii. What drives the cost of food is the fact that 90% of Hawaii’s food is imported. It is purely Supply vs. Demand that makes the cost of food in Hawaii so high.

A gallon of milk in Hawaii is anywhere from $4.99 to $7.49. Eggs are $1.99 to 2.69 a carton. Ground beef costs $2.68 to $3.29 a pound. Chicken ranges from $1.49 to $2.06 a pound. A 12 pack of Coke can cost anywhere from $3.65 to $6.19.

Gasoline prices

The cost to drive is a huge factor in Hawaii. We have some of the highest gas prices in the nation here. The cost of gas varies depending on where you live and they are in constant flux. Gas right now is ranging from $4 to $5 per gallon.

Home prices

Although home values have gone down due to the recession Hawaii is still in the top tier. The medium home price is 438k. In the Hilo metro area it’s around 212k, the most affordable of all. This is much lower than 3 years ago.

Why is the price of living in Hawaii is so much higher? The answer is simple, it is Hawaii! Hawaii is a huge tourist destination and for good reason. Many folks would love to live here. But the lack of a job market and cost of living derail those hopes.

Learn more about the cost of living in Hawaii
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