Kauai Real Estate Update- For a list of what Sold, was Just Listed and what went Under Contract last week on the island click here; Kauai Real Estate Update March 17 to 23, 2025
Poipu Beach Real Estate Update- For a look at the Fee Simple Poipu Beach market since the beginning of this year click here; Poipu Beach Fee Simple Current Market Analysis
Unit #13 has a prime location in building 3, located on the top floor this corner unit has gorgeous ocean and sunset views. It’s easy to see why this completely remodeled unit is such a successful vacation rental. To see more click here; Kiahuna Plantation Unit 13
For a complete update on the Kiahuna Plantation real estate market click here; Kiahuna Plantation Current Market Analysis
Record Low For Streams, Dry Season
We’ve had incredible gorgeous weather this “winter” and this is not the best of news for our water supply. This is supposed to be the wettest time of our year and yet day after day we’re getting gorgeous sunshine and sometimes it’s downright hot and humid.
Kauai Streams are telling a story of record low stream flows, for the last 9 months there has only been 12 days of peak flow conditions compared to a normal 60 days, at this time we’re at 20% of the normal flow for this time of year. None of this is good news for our drinking water supply, ag water and hydroelectric plants which produce power.
The water shortage is impacting other islands as well most notably Maui.
The hope if for significant rainfall to happen between now and the summer.
Three Things To Consider When Buying On Kauai
In my 21 years of selling real estate I have seen people think that reality of owning something on Kauai is what's in their heads, it makes perfect sense to them so why would they question it? Sometimes what is a very logical belief does not match up to reality. Consider these factors and, if you are a property owner here on Kauai I'd love to hear your thoughts;
✅ Goal 1 Lifestyle choice, not a financial one. I’ve seen buyers go down a deep dark hole of trying to make the rental income of a property they want to buy into a high performing return on their investment and it just does not happen. I know, it’s disappointing to find out that you don’t get a massive monthly return but you might get it when you go to sell. So, there’s that silver lining.
✅ Goal 2 Buy where you want to be, what part of the island do you love the most and where do you love spending your time? You can renovate any property but you can’t pick it up and move it from one side of the island to the other and if you are going to do that let me know because that is some good content for me to film! Seriously, invest where you are going to spend your time.
✅ Goal 3 Buy with resale in mind which, as an added bonus, will help with your property appreciating more than another choice might have. This is where you can build equity starting with your initial purchase. Yes, you’re buying to add this to your lifestyle but try not to be so specific in your purchase that if you need to sell you have a bit of a white elephant on your hands.
New Kauai Dairy Considered
At one time Hawaii had 100 dairy farms which produced all of the milk consumed in the state. Over the last 40 years that number has dwindled down to 1 dairy farm which is in the middle of an environmental lawsuit.
Enter “Aloun Farms” which is looking for legislative help in the form of tax-free financing and special purpose revenue bonds to be issued through the state Department of Budget and Finance in order to establish a dairy on Kauai. But where on Kauai? This is not known at this time. I remember well the massive push back Ulupono got when trying to open a dairy at a site at Maha’ulepu about 2.5 miles away from the Grand Hyatt, neighboring resorts and subdivisions. The dairy project was dropped in 2019 after 5 years of efforts to get it through.
This bill has been approved by the Senate, has gone through two public hearings and last week the House Committee on Agriculture and Food Systems advance the bill.
Hawaii has been making it through the rising cost of eggs by our local egg production. It’s hoped that revitalizing milk production can do the same.
To keep track of this bill, and to learn more, visit this site; SB 1547
Kauai Leads The State In Unemployment Rate
The States unemployment rate is a 3% after six month of holding at 2.9%. Nationally, the unemployment rate is at 4%.
Employed people in Hawaii went from 662,850 from 661,600 however, Hawaii saw a slight dip in jobs from December to January, with a net loss of 500 positions. The biggest shift came from the leisure and hospitality sector, which dropped by 1,100 jobs. That said, compared to the same time last year, nonfarm employment is still up by 9,900 jobs—a 1.6% increase overall.
Kauai leads the way with the lowest Unemployment rate, here are the stats;
🏝️ Kauai 2.5% (from 2.7%)
🏝️ Oahu 2.6%
🏝️ Big Island 3.1%
🏝️ Maui 3.4%
🏝️ Molokai 3.2%
🏝️ Lanai 3.5%
Electricity Costs On Kauai Get Some Good News
Nationally our state has the highest electricity costs at 42.34 cents per kilowatt hour while the national Average is 16.26. Our feeder markets for tourism and homebuyers have prices at 30.55 for California, Utah at 11.02, Oregon 14.12 and Washington State at 11.83.
Our provider, Kauai Island Utility Cooperative (KIUC) is proposing two new solar projects located on the West Side of the island. Once these come online, which is proposed to be in 2028, Kauai will be at 80% for our renewable energy. The goal is to be 100% renewable by 2033.
The current solar projects that we have has stabilized our rates over the last 5 years. We went from being the highest in the state to the lowest.
“Mana Solar” will be located in the Mana Plain and “Kaahanui Solar + Storage” will be in Makaweli. Both projects will generate enough electricity to power more than 30,000 homes and will account for up to 40% of KIUC’s annual energy production.
