Side-by-side comparison of home prices, mortgage payments, and housing costs between Honolulu and Kailua, Hawaii. Using Hawaii's 0.28% property tax rate and $1,200/year insurance. Updated for 2026.
Honolulu edges out Kailua in affordability, saving you roughly $2,046/month on total housing costs. Both cities are in Hawaii, so property tax rates and insurance costs are the same — the difference comes down to home prices and what you get for your money in each market.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI. Uses Hawaii's 0.28% property tax rate.
Buying in Honolulu saves you approximately $2,046/month ($24,552/year) compared to Kailua, based on median home prices with identical loan terms.
Honolulu is the better choice for first-time buyers, with a median price of $825K versus $1.1M in Kailua. That's $325K less to save for a down payment. You'd need roughly $29K for an FHA 3.5% down payment in Honolulu, compared to $40K in Kailua. Hawaii offers the HHFDC Hula Mae Program program (Below-market rate mortgages) which applies in both cities.
Honolulu has the better price-to-rent ratio at 25.9x versus 32.5x in Kailua. A lower ratio generally signals better rental income relative to purchase price. Average rent in Honolulu is $2,650/month on a $825K median home, making it a stronger candidate for buy-and-rent investors.
Honolulu (pop. 350,964) offers more amenities, schools, and services typical of a larger city, while Kailua (pop. 40,514) may offer a quieter, more community-oriented lifestyle. Honolulu offers both more options and lower housing costs, making it attractive for families who want urban amenities without a premium price.