Kauai Real Estate Update- To find out what Sold, went Under Contract and what got listed last week on the island click here: Kauai Real Estate Update February 23 to March 1, 2026
Kiahuna Plantation Real Estate Update- Sold | Kiahuna Plantation #178 $555,000 (LH)
Unit #178 is located in building 27 and has a lovely ocean view. The owners bought it in March of 1999 and it became a part of their lives, so it was a little bittersweet for them to sell.
To find out the real estate activity at the Kiahuna since the beginning of this year click here: Kiahuna Plantation Current Market Analysis
Hawaii Residents Might Not Get Tax Breaks
The “Green Tax Cut” was introduced in 2023 by Governor Josh Green and Hawaii residents were thrilled. The first announcement was made in 2023 for a modest tax cut. Then he proposed an even better “gigantic multi-year, multibillion-dollar reduction in state income taxes”. Lawmakers were unanimous in voting their approval and the Governor signed this into law.
But, now the Governor is asking state lawmakers for a vote to “pause” the series of scheduled state income tax cuts that would have saved Hawaii residents billions of dollars.
The reason given for the “pause” in tax breaks is because of the governments cutting funds for Medicaid and food aid for the poor. The state now needs to make up the difference and the proposal is to pause the tax cuts for residents.
The phone calls from unhappy residents, a Senator reported, are already starting to come in.
Kauai Gets Federal Funding For Three Projects
The County of Kauai will be getting $7.5 Million for three projects:
$3.15 Million will be for the Lima Ola affordable housing in Ele’ele. This is a 75-acre county owned subdivision that will have 600 affordable homes: 40 units for senior living, 32 housing units for homeless and 36 single family homes. Total cost: $66.7 Million.
$2 Million for the Kilauea Town Expansion Project. There will be 350 affordable rentals and homes for sale. Total cost: $30 Million.
$2.3 Million for a shared use pedestrian and bicycle path from Waimea to Kekaha. No total cost given.
Koloa Housing Bill Gets Green Light 
This had to be a grueling meeting; there was eight and half hours of testimony from the public mostly opposing the project. But some were in agreement saying that there are workers in the Koloa area that can’t afford to live on their own. They are living with their parents and this project will allow them to get their own home.
The Planning Commission voted unanimously to approve the rezoning. There will be no vacation renting of the units and 45% of the units will go to existing county residents. Prices, building timelines etc. are not known at this point. The first step for the developer was to get the land rezoned which he did.
If you want the handout on the project send me an email at [email protected]
Maui Planning Commission Rejects Bill To Save Vacation Rentals
A recent Bill in Maui designed to weaken the impacts of Bill 9 did not pass. Bill 9 will start January 1, 2029 in West Maui and January 1, 2031 for the rest of the county. Most of the properties that are impacted are in Kihei and West Maui. During this time 7,000 vacation rentals will be phased out. The proposed bill would have created two new hotel zoning districts allowing 4,500 of the 7,000 units to continue as vacation rentals.
It’s important to note that all 7000 units are in apartment zoned areas and were on the “Minatoya List” which allowed them to do vacation renting even though they were built to be residential condos. As the decades went on the knowledge that these units were not officially zoned for vacation renting got lost. But then the Maui wildfires happened which displaced so many people and inspired the Maui Mayor to take away this exemption.
I get asked if this will happen on Kauai and my answer is it already did, back in 2008 but we didn’t have this type of exemption that Maui has (the “Minatoya List”) What we had were people operating where they thought they could vacation rent, they couldn’t and never had the right to. In some cases, they have an exemption but you need to re-file every year and this is a disclosure item so you would be told about it before you bought.
Kauai Real Estate Year-To-Date 2026 vs 2025
Cracking a key threshold this last week is the interest rate drop that took us below 6%. And how the this going to play out I’m so curious to know because homeowners who secured interest rates in the 2 and 3 percent range years ago have been reluctant to sell, meanwhile Buyers are reluctant to buy with interest rates in the 6’s and 7’s. It’s also a psychological nudged for buyers who banked on the interest rates going lower and, now, they have.
Below is the Kauai real estate sales for the first two months compared to this same time last year.
