August 2026 Market Data
In August 2026, five multifamily properties (5+ units) traded in Hawaii, generating $14.90M in total sales volume. The median price per unit came in at $238K, with a median cap rate of 5.27% a meaningful expansion from recent months and a signal that buyers are continuing to demand higher yields to offset elevated financing costs.
The cap rate expansion is the defining data point of the month. With active inventory still priced at sub-4.50% cap rates, the gap between what sellers are asking and where deals are clearing remains the central friction point in this market. Capital is active, but it is disciplined and the assets transacting are the ones meeting buyers where they are underwriting today.
The notable sale of the month was 1784 Ala Moana Blvd., a 20-unit property that originally came to market at $6.0M and ultimately traded at $5.05M a 15.8% reduction from the original asking price. The discount to list is a data point every owner with an active listing should be paying attention to.
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Inventory Snapshot
As of the time of this report, 65 multifamily properties (5+ units) are available across Hawaii, encompassing 766 units and $237.6M in total asking volume. The median price per unit stands at $300K with a median cap rate of 4.41%. Seven deals are currently pending, representing $20.7M in total pending volume.
At 248 average days on market, listings that are not priced to where buyers are underwriting are simply not moving.
To receive our Hawaii Multifamily Inventory Sheet, which compiles all active listings and off-market opportunities into one comprehensive document, contact us directly to be added to the distribution list.
Owner’s Corner: The 10-Year Treasury Just Crossed 5.0%. Here’s What That Means for Hawaii Multifamily
The 10-year Treasury yield recently crossed the 5.0% mark, a level not seen consistently since 2007, with direct implications for how Hawaii multifamily assets are priced and financed today.
Financing costs follow the 10-Year. Higher yields push lending rates up, which means buyers require higher cap rates to make deals pencil, putting downward pressure on valuations even when nothing about your property has changed. The cap rate spread is inverting. With the 10-year at 5.0% and Hawaii multifamily trading at sub-5.50% cap rates, the spread between real estate yields and the risk-free rate has compressed to near zero, a dynamic that is difficult to justify for yield-driven buyers. Know your exposure. Owners with low fixed-rate debt may be positioned to wait. Those approaching a loan maturity or carrying floating rate debt are facing a very different math and should be stress-testing their position now.
A 5.0% 10-year is not a reason to panic, but it is a reason to have an honest conversation with your lender, your CPA, and your broker before the market forces one.
For more market insights, visit our blog at hawaiimultifamilyadvisor.com/blog.
Done Deal!
We closed two of McCully’s best-known apartment buildings in a single off-market transaction, representing MW Group on the buy side.
Punahou Circle Apartments: 96 units | $18.0M | $187.5K/unit
President Obama’s childhood home, built in 1965, within proximity to Punahou School.
Read the deal story →
McCully Circle Apartments: 99 units | $21.5M | $217K/unit
70 one-bedrooms and 29 two-bedrooms on Citron St., near UH Mānoa and Ala Moana.
Read the deal story →
Both buildings had long-term family ownership, significant deferred maintenance and a potential for improved cash-flow through thoughtful renovations. Those are the same conditions many of you are weighing right now. Deals like this come from deep relations strengthened over years. If you’re wondering what your building would bring today, it’s worth a quick conversation.
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