Kauai Real Estate Activity- In Escrow | Kaha Lani 124 an ocean view, renovated 2 bedroom 2 bath just steps away from two beaches. I had non-stop showings with this unit and over the weekend we got an offer put together. Listed at $1,345,000 (FS).
To find out what Sold, went Under Contract and what was Just Listed last week on the island click here; Kauai Real Estate Activity January 29 to February 4, 2024.
Poipu Beach Real Estate Activity- For all the Poipu Beach fee simple real estate activity that has happened since the beginning of the year click here; Poipu Beach Fee Simple Real Estate Activity
Kiahuna Plantation Real Estate Activity- For all things Kiahuna Plantation click here; Kiahuna Plantation Current Market Analysis
Lihue Airport Only One In The State For Positive January Arrivals
Lihue Airport had a total of 63,893 passengers compared to 62,903 in January of 2023. This is the highest ever for the beginning of an annual period and Kauai was the only island to post a gain out of all the other islands.
These numbers only factor in passengers from direct flights and do include residents returning to Kauai. It does not factor in the thousands that arrive by interisland flights.
Kauai Economic Market Highlights 2023
Of the four islands, Kauai had the lowest unemployment rate a 2.3% at the end of 2023 compared to 3.4% the year before. With 2019 being the benchmark year we were back to that number which was 2.2%. However, what COVID changed drastically is amount of people in the Kauai labor market. Every business is short staffed and all are looking to hire which is very different from 2019. The amount of people working and product availability has gotten better since we opened back up to tourism in April of 2021 but it’s still something we struggle with on the island.
On Kauai the labor pool shrank from 36,600 in 2022 to 36,150 this year. The Kauai professional sector added 300 positions, Trade/Food Service/Accommodations added 200, Transportation/Utilities/Local Government 100 jobs.
Statewide the unemployment is 2.9%, Maui was the highest understandably given the August fires, they are at 5.3%. Oahu was 2.5% and the Big Island of Hawaii is 2.6%.
Hawaii Direct Vacation Rental Numbers
Rental homes, condominiums and shared space in a private home for vacation renting was done by the state of Hawaii using data on Airbnb, VRBO (Homeaway) & Booking.com for all four major islands. Unit supply had dropped which is no surprise given the crackdown in Oahu on illegal vacation rentals (Kauai had gone through a similar sweep some years ago). The fires on Maui were a contributing factor to the overall numbers.
Here are the numbers for the end of 2023:
Kauai’s occupancy rate was 50.5% ADR $384.07
Oahu 55.3% occupancy rate ADR $257.51
Maui 54.8% occupancy ADR $394.21
Big Island of Hawaii 51.8% occupancy $249.77 ADR
I have the full report which breaks it down even further and gives the comparison of 2023 vs 2019. Email me if you’d like that full report.
Surprising Housing Numbers For Kauai January 2024 vs 2023
I was genuinely shocked when I saw, for the first time in well over a year, the increase on the sales of homes. There was not a district on this island that did not have an increase, so what happened? I think I know and here is my timeline:
* Rising interest rates increased the number of homes and the days on market
* Kauai inventory started building up
* A “crash” never happened; buyers saw that prices remained stubbornly on the higher side but the increase in prices did slow down.
* December was the third meeting in a row that the Feds did not raise interest rate.
* The Feds said in December that interest rates are projected to lower in 2024.
* Buyers who were waiting for a sign to jump in got it and those that could, did.
I remember watching Good Morning America on the morning of January 19th and they did a segment on the lowering of interest rates and cautioned that inventory is historically low, and with more people entering the market, prices will start to increase. By January 19th I had already seen an increase in real estate activity and the numbers were there to back up that up however, when it’s said on Good Morning America you can count on viewers digesting it as the biblical truth. I think this segment just added fuel to our market.
Here are the numbers for the end of January 2024 vs 2023.