Living in Kailua-Kona, HI

Hawaii County

Kailua-Kona is the commercial and tourism hub of West Hawaii, on the dry, sunny leeward side of the Big Island -- a genuinely dual-natured 2026 market this record discloses honestly rather than as a one-sided resort pitch. On the strength side: the town's economy centers on real tourism/resort hospitality and genuine Kona-coffee agriculture (a $250-million-a-year industry across 600+ farms), unemployment ran a real, genuinely low approximately 2.6% (Hawaii County, Q1 2026), Hawaii's Social Security and employer-pension exemptions are real and favorable for retirees, and 2026 brings a real, historically significant positive: the Ironman World Championship's return to a combined men's-and-women's race held in Kailua-Kona itself on October 10, 2026, for the first time since 2019. On the honest challenge side: housing runs genuinely, substantially more expensive than the national figure (Zillow's cited average home value ran approximately $881,477, more than double the ~$408,776 national median), Hawaii's state income tax runs genuinely high (11% top rate, one of the nation's highest), the town's crime rate runs genuinely above national comparison figures (a 'D-' safety grade cited, roughly 9th safety percentile), Kona Community Hospital's 94-bed, Level III-trauma scale is genuinely smaller than the large regional health systems in several other markets in this dataset, and the area carries a real, multi-layered hazard profile -- lava-flow risk from Hualalai and Mauna Loa (distinct from Kilauea's real, ongoing but geographically distant east-side eruption), a real, current wildfire 'red zone' designation, and real statewide tsunami exposure. This record discloses Kailua-Kona's honest 2026 picture directly: a genuinely scenic, warm, tourism- and coffee-anchored West Hawaii town with real retiree appeal and low unemployment, weighed honestly against genuinely high housing costs, a genuinely high income tax rate, an above-average crime rate, and a real, multi-layered natural-hazard profile worth researching directly before committing to a specific Kailua-Kona address.

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Housing

Median sale price$878,000

Taxes

Local effective property tax rate0.57%

Not independently sourced at the Hawaii County level this session. Hawaii's top state income tax rate is 11.00%. See the Hawaii hub page for the statewide property tax context -- do not treat that figure as Kailua-Kona-specific.

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The tradeoffs

Pros

A real, genuinely low Hawaii County unemployment rate (approximately 2.6%, Q1 2026). Hawaii's real, full Social Security exemption and full employer-funded-pension exemption -- genuinely favorable for retirees, alongside a real, substantial retiree population already in place (approximately 22% of residents cited as age 65+). Hawaii County's real, current owner-occupied property tax RATE (0.575%, cut from 0.65% the prior year) running genuinely low nationally, layered on Hawaii's genuinely lowest-in-the-nation statewide effective property tax rate. A real, genuinely broad airline/route network at Kona International Airport (9 carriers, ~19-21 nonstop destinations). A real, current, historically significant 2026 event: the Ironman World Championship's return to a combined format held in Kailua-Kona on October 10, 2026. Real, genuine Kona-coffee agricultural heritage and a $250-million-a-year local coffee industry. Hawaii's real, genuinely low BASE homeowners-insurance rate (before hurricane coverage) by national standards. Genuinely lower direct hurricane-landfall risk on the leeward (west) side versus windward coasts.

Cons

Genuinely, substantially expensive housing across every citation reviewed: Zillow's cited average home value (~$881,477) runs more than double this project's recurring ~$408,776 national median, and the single-family median (~$1.225 million) runs roughly triple it -- even amid a real, disclosed 2026 cooling trend. Hawaii's state income tax runs genuinely high: an 11% top rate (12-bracket structure), among the nation's highest, applying starting at a comparatively modest $200,000 single-filer threshold. A real, disclosed structural property-tax trap for this specific resort/second-home market: most Kailua-Kona buyers will NOT qualify for the low owner-occupied rate and will instead face the substantially higher long-term-rental (0.775%) or non-owner-occupied (up to 1.11%) rate. Crime runs genuinely above national comparison figures (a 'D-' safety grade cited, roughly 9th safety percentile, with real, disclosed neighborhood-level variance). Kona Community Hospital's genuinely smaller scale (94 beds, Level III trauma) means residents needing advanced specialty care may need to fly to Oahu. A real, multi-layered hazard profile: lava-flow risk from Hualalai and Mauna Loa (most of town in moderate-hazard Zone 4), a real, current wildfire 'red zone' designation tied to the area's dry leeward climate, real statewide tsunami exposure, and genuine (if geographically distant) awareness required of Kilauea's real, ongoing east-side eruption sequence and its potential vog impacts. Hawaii's statewide cost-of-living index (~193) is the nation's highest.

Who this fits

Best for: Best fits movers whose specific priorities align with Kailua-Kona's real strengths -- retirees drawn to Hawaii's real Social Security and employer-pension tax exemptions and the town's already-substantial senior population, warm-weather and beach-focused buyers, luxury buyers comfortable with genuinely high home prices, and those with a career or business tied to tourism, hospitality, or Kona-coffee agriculture -- and who take the market's real, honestly-disclosed challenges (genuinely high housing costs and state income tax, an above-national crime rate, limited local hospital capacity, and a real, multi-layered volcanic/wildfire/tsunami hazard profile) seriously enough to research current, address-specific data directly before committing to a specific Kailua-Kona property.

Maybe not for you if: Probably not the right fit for budget-conscious buyers or renters, given Kailua-Kona's real, cited home values and rents running well above national norms even after 2026's real, disclosed price softening. Anyone requiring a below-national-average crime rate as a hard requirement, given the town's cited 'D-' safety grade and roughly 9th-percentile safety ranking. Anyone anticipating needing frequent access to advanced tertiary/specialty hospital care nearby, given Kona Community Hospital's genuinely smaller (94-bed, Level III) scale relative to other markets in this dataset. Anyone highly risk-averse to natural-hazard exposure of any kind, given the area's real, disclosed lava-flow-zone status, current wildfire 'red zone' designation, and statewide tsunami exposure -- all described directly in this record rather than omitted. Buyers assuming they will automatically qualify for Hawaii County's lowest property-tax rate, given this record's disclosure that most properties in this specific resort/second-home market are billed at the substantially higher long-term-rental or non-owner-occupied rate instead.

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Last reviewed: 2026-08-28. Independent research; see individual metric entries above for source attribution. This is not financial, tax, or legal advice -- confirm current figures with a local professional before making a decision.