There is no single “Big Island mortgage rate.” Mortgage rates are generally priced statewide and vary by lender, loan type, credit score, down payment, and whether the loan is conforming, jumbo, VA, or FHA.
As of June 26, 2026:
Loan Type
Hawaii Market
National Average
30-Year Fixed
~6.5%–6.6%
6.49%–6.56%
15-Year Fixed
~5.8%–6.0%
5.84%–5.93%
The difference between Hawaii and national averages is currently very small—typically only a few hundredths of a percentage point. Individual lender pricing often matters more than geography.
Why Are Mortgage Rates Still Elevated?
Many people assume mortgage rates simply follow the Federal Reserve. While the Fed influences borrowing costs, mortgage rates are driven more directly by the bond market—especially the 10-year U.S. Treasury.
The biggest factors affecting today’s rates include:
Inflation – Inflation remains higher than policymakers would like. Investors demand higher returns when inflation is elevated, pushing mortgage rates upward.
Federal Reserve Policy – Although the Fed has held short-term rates steady recently, it has signaled it remains focused on controlling inflation.
Treasury Yields – Mortgage rates generally move with the 10-year Treasury yield. When Treasury yields rise, mortgage rates usually follow.
Economic Growth and Employment – A strong labor market gives the Fed less urgency to lower rates.
Global Events – Geopolitical uncertainty and swings in energy prices continue to create volatility in financial markets.
Where Are Rates Likely Headed?
No one can predict mortgage rates with certainty, but most housing economists expect rates to remain within a relatively narrow range over the next year.
Current expectations are:
Small fluctuations are likely.
A dramatic drop back to the 3% mortgage rates seen in 2020-2021 is considered highly unlikely.
If inflation continues to ease, rates could gradually drift lower.
If inflation remains stubborn or increases again, rates could stay near current levels or move modestly higher.
What This Means for Buyers
One positive development is that mortgage rates have become much more stable than they were over the past several years. Stability allows buyers to budget with greater confidence.
Many buyers are also realizing that:
Home prices on the Big Island have remained relatively resilient.
Waiting for dramatically lower interest rates may not pay off.
If rates eventually decline, refinancing is always an option for qualified borrowers.
For buyers who find the right property today, purchasing now and refinancing later can be a more practical strategy than trying to perfectly time the market.
The real estate market in the Puna District on the Big Island of Hawaiʻi continues to show steady activity as buyers search for affordability and space. While the overall Hawaiʻi Island housing market has shifted toward a more balanced environment, Puna remains one of the island’s most accessible areas for both homebuyers and land investors.
Across the district, the median home price is currently around $395,000, still significantly lower than many other parts of Hawaiʻi. Homes are generally taking three to four months to sell, giving buyers more time to evaluate properties while well-priced homes continue to attract strong interest.
Hawaiian Paradise Park Real Estate
Hawaiian Paradise Park (HPP) remains one of the most active subdivisions in the Puna District.
Market Snapshot
Median home price: about $530,000
Typical days on market: 90–100 days
HPP continues to attract buyers because of its one-acre parcels, paved roads, and convenient location between Hilo and Pāhoa. The subdivision offers a balance of rural living with relatively easy access to schools, shopping, and services.
Hawaiian Acres Land Market
Hawaiian Acres is known for its larger parcels and rural lifestyle.
Typical property characteristics
Parcel size: 3 acres
Land price range: $40,000 – $100,000+
Buyers are often drawn to Hawaiian Acres for privacy, farming opportunities, and off-grid living potential. Many purchasers buy land with plans to build in the future.
Pāhoa Housing Market
The town of Pāhoa serves as the commercial center of lower Puna and continues to grow with new businesses, restaurants, and community services.
Current median home price: About $325,000
This makes Pāhoa one of the more affordable communities on Hawaiʻi Island, particularly attractive to first-time homebuyers and investors.
Puna Market Highlights
Median Puna Home Price: $395,000
Median Hawaiian Paradise Park Home Price: $530,000
Median Pāhoa Home Price: $325,000
Typical Days on Market: 90–115 days
Hawaiian Acres Land: $40K – $100K+
Why Buyers Continue to Choose Puna
Larger lot sizes compared to other parts of Hawaiʻi
More affordable homes and land
Rural lifestyle with privacy and space
Long-term growth potential on the Big Island
Thinking About Buying or Selling in Puna?
If you would like information about current market trends, property values, or available homes and land in the Puna District, feel free to reach out.
Hawaiʻi’s sunny climate provides reliable solar production year-round, offering homeowners numerous benefits:
Lower electric bills due to reduced reliance on Hawaiian Electric.
Energy independence, especially when paired with battery storage.
Environmental protection, supporting the state’s goal of 100% renewable energy by 2045.
Key Issues Affecting Solar Adoption on Hawaiʻi Island
1. Utility Interconnection and Grid Capacity
Because Hawaiʻi Island operates on an isolated grid, certain circuits—especially in Puna, Kona, and parts of Hilo—are already saturated. This can result in:
Longer approval times
Restrictions on exporting excess power
The need for non-export or battery-based systems
2. Evolving Incentives and Regulations
Hawaiʻi no longer offers traditional net metering. Instead, programs such as:
Customer Self-Supply (CSS)
Customer Grid-Supply Plus (CGS+)
Battery Bonus Programs
shape how systems must be designed. Understanding these options helps homeowners maximize savings.
3. Upfront System Costs
A complete system with battery backup typically costs $20,000–$40,000+, depending on:
Home size
Sun exposure
Battery capacity
Equipment brand
Financing options help reduce the barrier, but costs remain a central issue.
Salt air and humidity can affect hardware longevity
Lava Zones 1 & 2 may influence insurance and financing
Microclimates require customized solar design
The Rising Importance of Battery Storage
Battery storage has quickly become a core component of solar installations. Benefits include:
Backup power during outages
Ability to store energy for nighttime use
Reduced grid reliance
Improved system approvals in restricted circuits
Most new systems on the Big Island now include batteries such as Tesla Powerwall, Enphase, or Generac.
Large-Scale Solar Projects on the Big Island
Hawaiʻi Island continues expanding its renewable infrastructure, including:
Waikoloa Solar + Storage
Keaʻau Solar Farm
Community solar programs in Puna and Kaʻū
These projects contribute substantially to island-wide sustainability goals.
What This Means for Homeowners
For property owners on Hawaiʻi Island, solar energy offers:
Lower monthly electricity costs
More control during outages
Increased property value
Long-term stability despite rising utility rates
Solar is especially appealing for off-grid homes, agricultural properties, and remote parcels.
Conclusion: A Bright Future with Informed Choices
Solar energy is an essential part of Hawaiʻi Island’s future. Understanding system types, regulations, and local conditions allows homeowners to make wise, cost-effective decisions.
If you’d like a free solar or property market analysis, or guidance tailored to your lot or home, I’m happy to help.
Great Location, convenient and easy to get to. The lot is just a very short distance from the end of South Kulani Rd. This lot is a perfect start for plant nursery. Ground is leveled and clear, growing area covered in plastic sheets to control weeds. Good soil in the growing area and a spot dug out for an irrigation pond.
Seller has created a huge stock of very valuable tree starters. These trees and their seeds are highly prized and have an international market. They can only grow in a few, very specific, locations in the world. This lot in Hawaiian Acres is one of those locations.
The lot is partially gated and fenced, with a second set of gates separating the commercial area from the living area. The survey of the lot included markers on each side of the lot to assist with locating the fence line. A house pad in front, leveled and ready to go. Electricity is available with no SSPP fee. The potential is here for a home and business in one convenient, easily accessible location.
I have been thinking about upcoming changes to the law regarding vacation rentals, and wanting to write about what is going on.
I have been hearing about this new artificial intelligence program called ChatGPT. It can write essays that are very convincing. High school and college students are already using it to write their papers for school.
I thought, hey, what about me? It would sure save me a lot of time and effort. So, this is what I did. I created an account at ChatGPT. Then I went to ChatGPT+ and put in this request;
Write a 100 word essay on upcoming changes to regulations regarding vacation rental operations in the Puna District.
This is what I got back:
“Vacation rental operations in the Puna District of Hawaii are set to undergo some drastic changes. With the growth of the area’s tourism industry, state regulations have started to crack down on property owners who rent out their properties on a short-term or vacation basis.
Hawaii’s Department of Business, Economic Development and Tourism recently announced they are launching a Mandatory Vacation Rental Registry, which would allow the state to accurately track rental properties and their operations. The goal of this registry is to ensure that local regulations for vacation rentals are properly enforced. This will be mandatory for any property owner who wishes to continue to rent their property on a short-term basis.
In addition, the state has issued several new regulations on these properties. These regulations include additional restrictions on unhosted and nonresidential vacation rentals, such as a two-week limit for multiple bookings, and increased penalties for failure to comply. These changes are intended to increase accountability and provide stronger government oversight of vacation rental operations in the Puna District.
Overall, it is clear that the upcoming changes to regulations regarding vacation rental operations in the Puna District will have a significant effect on property owners. It is important that they are familiar with the new laws and regulations and comply accordingly. Failure to do so will result in severe punishments, including hefty fines and possible jail time.”
I love it. I am not sure about the “possible jail time”, but for the most part, I wouldn’t change a word. Also, it is more the county that is cracking down on vacation rentals, not the state.
I do want to add some things, though.
This bill was introduced by Ashley Kierkiewicz and Heather Kimball. I really don’t like the proposed changes, and wondered why they introduced this bill. Ashley is our representative here in Puna. I decided to ask her why she is sponsoring these changes. This is what I sent to her
“Ashley, I am writing an article about the proposed changes to vacation rental regulations. I wondered why you are introducing this legislation?
I see it having a very negative impact on many senior citizens living in Puna. Many retirees depend on vacation rental income to supplement their social security and give them a hedge against inflation. I would like to include your response.
By the way, thank you for your support of our HPP Land Use Committee. Aloha”
Non-hosted vacation rentals are already required to be licensed, and the county has said that they will not issue any new licenses in Puna for non-hosted short term rentals. The changes that they are proposing would extend that regulation to hosted rentals. Every hosted rental would be require to register with the county, and the county would be setting limits as to how many people will be able to offer hosted rentals. There would also be new regulations
This is a quote from an article in Honolulu Civil Beat;
“If the bill is ultimately adopted, transient rental operators would have to pay an initial registration fee and an annual renewal fee and comply with a host of rules. Some of the rules relate to on-site parking, the submission of site and floor plans, contact information for all registered property owners and managers, notification to surrounding properties and more.
Failure to do so could result in $10,000 in fines.
The bill would set a guest limit of no more than two adults per bedroom and an additional two adults for the unit as a whole. Individuals could operate no more than one transient accommodation rental, besides their principal home, unless they’re a licensed realtor.
Commercial weddings, wedding receptions or events would be prohibited unless operators get special permits.”
Hosted rentals are not currently regulated. You don’t need a license. Hosted means that the owner or a manager lives on the rental property. It’s a good deal. Your kids are off to college, probably never to return to live. You can rent out their rooms for short term rentals. At $50 to $100 per night, that could make a significant impact for retirees living on a fixed income. The recent inflation has already created hardships for a lot of our neighbors. Do we really need or want the county to be stepping in to regulate and limit this source of income?
To be fair, they are addressing some real issues. There is a shortage of available rentals in Puna. They want to manage this economic issue by restricting what people can or can’t do. By limiting vacation rentals, they are, in theory, making more rentals available to local people. There is some logic to that. If I could not offer vacation rentals, I would probably offer long term rentals, if I needed some additional income.
The other issue is the increase in noise and traffic associated with vacation rentals. The sponsors of this bill say they are trying to protect the quality of life for those living in the neighborhoods of these short term rentals. I haven’t seen any direct evidence of these problems, but I have heard stories.
I guess it comes down to costs and benefits. I am sure the sponsors of this bill are looking out for the welfare of their constituents, but things don’t always turn out as intended.
What I see is a further intrusion of the government into our daily lives, more government fees and red tape for those wanting to offer hosted vacation rentals. I am not saying they are totally wrong. There are problems. We do have outside investors buying up properties to operate as vacation rentals. I would like to see that reduced. It does reduce the amount of available housing, and doesn’t provide income to people living here.
It is a complex issue. We need to understand the costs and benefits associated with this proposed legislation. We also need to speak up and let our county representatives know how we feel, whether we support this legislation or not.
A reminder of the plantation days in the Landing Camp subdivision. This house was built in 1938 and still retains much of its original charm. It has four small bedrooms and a total of 915 square feet of living space. It is located on the beautiful Hamakua Coast, a very popular and expensive part of the island. Priced at $350,000, it is the only residential listing in that area priced under $500,000.
I have an idea. I want to set up a tiny home on a piece of land, and sell it
I’ve decided to share this process with all of you. It is too much to put into one post, so this will be a series of post as I go through the process.
This how it breaks down
Buying a lot
Prepping the lot
Permit Application
Buying a Boxabl tiny home
Getting it installed
It is going to take some research. I want to figure out how much will it cost to have a permitted home with water, sewer, and electricity connected and installed.
The first article will be about buying and prepping the land here in Puna on the Big Island.
This is a YouTube video that talks about Boxabl and their second factory that will be coming online very soon
Affordable housing is an issue that has been around for a while, here and on the mainland. However, it’s getting worse. With the huge increase in prices here on the Big Island, many buyers are being priced out of the market. They can’t afford to buy that starter home. With the increase in cost of materials, they can’t afford to build it, either.
That is why, when I heard that Elon Musk was investing in a company called Boxabl that manufactures tiny homes, it caught my attention.
Boxable was started by Paolo Tiramani. He was born in Italy, educated in London, where he earned degrees in mechanical engineering, and industrial design. By 1986, he held 144 patents. In 1986 he formed the company, 500 Group, with the idea of turning some of these patents into cash. One of those patents was the rolling tool storage box, which he licensed to Stanley Black & Decker.
In 2017, he formed the company, Boxabl, with the purpose of building tiny homes on an industrial scale. Instead of building homes individually, on site, they are built in a factory. That is not a new idea. Modular homes, trailer houses, have been built in factories for quite a while. The difference with Boxabl is the scale of manufacturing, the emphasis on quality of construction, and on making it energy efficient.
Right now, their only model is the Casita, a studio unit.
Casita
This is just the beginning, though. They are already designing other units, a master bedroom box, a two bedroom box, stackable boxes. Units can be joined together, or stacked to create an infinite variety of building. It is a new way of thinking about building structures. Here is a link to some of those ideas, https://www.boxabl.com/more
These future plans are interesting, but they are not available yet. What is available is the Casita.
The Casita is a 375 sq ft studio unit, quality materials and construction, energy efficient.
It is priced at $50,000. For the single person, or couple, this would be a great starter home. You won’t be able to find this quality anywhere else at this price. That’s the point. They have made getting that first home more affordable. This may also be benefit for government agencies, and non-profits thinking about providing housing for the homeless. That is another pressing issue, here and elsewhere. This may be a solution.
