Housing Becoming More Affordable for Maui Residents

According to the University of Hawaii Economic Research Organization (UHERO), the housing affordability index is on the up. There is still a wide gap between the state's median island income and median price of  a house, but the gap has been consistently growing smaller.

According to the UHERO index, when its number is at 100, it means that a family with a median income can afford a median home. The state of Hawaii has never reached that point thanks to high asking prices. Now that those prices are dropping, the gap is narrowing. For the island of Maui, the UHERO index was at 46.4 in 2006 but by 2008 it had risen all the way to 65.6. The number is expected to continue its growth, which is great news for those who want to buy real estate on the island.

Although Maui County real estate prices are falling more than Oahu's, the UHERO hasn't estimated how much improvement they expect for Maui. They have given estimates for Honolulu, however. That index is 64.4 and the current prediction is that it will reach as high as 76 by next year.

If you'd like to do some research on this subject, check the UHERO website and the Realtors Association of Maui website.

Maui Home Sales specializes in Maui oceanfront homes. Right now, homes for sale in Kaanapali include some excellent buys, and don't forget to use our online real estate search tool to find real estate meeting your specific criteria. As always, don't hesitate to contact me by email at robert@mauihomesales.com or call 808-662-0003. Mahalo for reading this week!