Co-own real estate report: Maui, Hawaii

Sitting among most people’s bucket lists is a trip to Hawaii. Maui, especially, is a long-time favorite of visitors because it offers everything that people think of when they picture Hawaii: jaw-dropping beaches, lush rainforests, natural beauty, volcanos, surfing, hiking, biodiversity, and an impressive culinary scene. Maui has more than 30 miles of public beaches, ensuring you’ll never be far from a beautiful shoreline.

For many, Hawaii is an ocean away, but it represents an exceptionally hot real estate market in the United States. Many real estate investors know Hawaii’s potential to return a very attractive return on investment. Maui enjoys a thriving tourism industry, which helps drive its economy. With countless tourists from all over the world including Maui among their top places to visit, they are willing to pay high costs for a once-in-a-lifetime experience.

Maui is the second-largest island in Hawaii and the second most visited, drawing about 2.5 million visitors each year. Maui is often described as quieter than Oahu, lusher than the Big Island and more diverse landscapes than Kauai. Maui offers rich culture and history and a lifetime’s worth of unique experiences, making it one of the world’s most coveted destinations.

What makes Maui attractive for fractional ownership?

Tourism is considered one of the backbones of Maui’s strong economy. In 2019, the number of tourists that visited Hawaii was a little over 3 million. While the pandemic disrupted the industry, in 2021, Hawaii made a remarkable recovery, ending the year with nearly 2.3 million visitors.

In addition to tourism, Maui has a unique topography that does not allow the same flexibility as mainland states when it comes to expansion and growth. With limited horizontal space and a limited amount of new housing developments, property prices typically increase as many people want to be a part of the action—and are willing to pay up to make it happen.

35.6% job growth over the next 10 years 🔼

20.5% increase in Maui home prices (from April 2021 to April 2022) 💵

55 days is the average timeframe in which homes in Maui County sell, compared to 81 days last year 🚀

$1 million median home sale price 😀

Short-term rentals in Maui

Maui allows short-term rentals (less than 180 consecutive nights) to operate by requiring hosts to obtain a tax map key and transient accommodations tax license number. Find out more information in Airbnb’s help center.

Maui’s impressive short-term rental statistics include:

87% occupancy rate on Airbnb 🌴

$7,100 /month average revenue on Airbnb 💰

$392 average daily rate 🛌

97% are entire home rentals 🏠

7% quarterly growth 📈

While COVID-19 temporarily slowed down tourism, Maui is showing impressive growth following the reopening and easing of travel restrictions.

What to see in Maui

Road to Hana

The Road to Hana is known worldwide for being a long, beautiful drive that features incredible sights and stops. The Hana Highway is 52 miles but it can take anywhere from two to four hours to complete since it is fraught with narrow one-lane bridges, hairpin turns and incredible island views. The road will lead you through rainforests, waterfalls, plunging pools and dramatic seascapes. And once you reach the beautiful and quiet town of Hana, you’ll see why it was worth the trip.

Haleakala National Park

No trip to Maui is complete without visiting Haleakala National Park. The park is a sacred place, drawing more than one million visitors each year. The 33,265-acre park is home to the dormant Haleakala volcano, but it also offers areas of subtropical rainforest and vast wilderness. There are endless opportunities for outdoor recreation, including hiking, birdwatching, watching the sunrise or sunset, biking, ziplining, or horseback riding.

Whale Watching

Humpback whales can regularly be seen off the shores of Maui. Humpback whale season generally runs from November through May, but they may be encountered in limited numbers during other months. An estimated 12,000 humpback whales migrate from the frigid waters of Alaska to the warm waters of Hawaii each year, according to the NOAA Hawaiian Islands Humpback Whale National Marine Sanctuary. It’s a sight that should not be missed.

Snorkel the Molokini Crater

Snorkeling in the extinct volcanic crater of Molokini is a must-do in Maui. Molokini is a small, crescent moon-shaped island just a few miles off Maui’s southern coast. It offers a thriving coral reef and crystal-clear waters to see more than 250 species of tropical fish.

Areas of Maui

Lahaina

Lahaina is a hotspot in Maui drawing the bulk of visitors. The area offers dozens of art galleries, unique shops and restaurants–including on the lively Front Street, which is ranked one of the “Top Ten Greatest Streets” by the American Planning Association.

Kihei

Kihei is set on a stretch of coastline on Maui’s southwestern coast. It’s known as being one of the sunniest and hottest places on the island, making it a great place to relax on the beach. Take a leisurely swim or picnic and watch the sunset at one of the more than six miles of spectacular beaches.

Paia

Paia is a small and historic area and is often selected as a top choice for the coolest place to stay in Maui. It is situated on Maui’s north shore and is well-positioned for exploring the island’s most popular attractions, including Hana, Haleakala, and Kahului.

Flight times

• San Francisco to Maui – 5 hours, 30 minutes
• Los Angeles to Maui – 5 hours, 40 minutes
• Seattle to Maui – 6 hours, 10 minutes

Maui co-own opportunities

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680 Noweo Pl, Wailuku, HI 96793

Asking price: $1,649,000

Estimated down payment: $329,800

Estimated mortgage: $9,515/month

Estimated Airbnb revenue: $8,446/month

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620 Komo Ohia St, Wailuku, HI 96793

Asking price: $1,199,000

Estimated down payment: $239,800

Estimated mortgage: $6,918/month

Estimated Airbnb revenue: $8,446/month

55 Kalola Pl, Kihei, HI 96753

Asking price: $1,395,000

Estimated down payment: $279,000

Estimated mortgage: $8,049/month

Estimated Airbnb revenue: $11,173/month

Sources:

Maui (Lahaina) vacation rental data

Maui home values

Maui Airbnb calculator

Nestment, Inc. does not guarantee and is in no way responsible for the accuracy of information provided in this blog post. All information is provided “AS IS” and with all faults. Data presented here may not reflect all real estate activity in the market.  While the information on this site is about legal and tax issues, it is not intended as legal or tax advice or as a substitute for the particularized advice of your own attorney and tax professional.