February 2026 Market Data
In February 2026, seven multifamily properties (5+ units) traded in Hawaii, representing 82 total units and $18.11M in total sales volume. The median price per unit came in at $200K, with a median cap rate of 5.42%. Compared to January 2026, transaction activity increased from four to seven properties traded, with total volume rising from $15.77M to $18.11M, reflecting a strengthening pace of deal flow to start the year.
The notable sale of the month was 2406 Kuhio Ave., Honolulu, HI 96815, a 15-unit property that traded for $4.2M at $280K per unit and a 4.16% cap rate. The below-market cap rate reflects in-place rents that remain below market, signaling that the buyer is underwriting to upside potential rather than current income.
Download Sales Comps Below
Inventory Snapshot
As of April 2026, the active Hawaii multifamily market (5+ units) consists of 68 properties totaling 862 units and $252.56M in total asking volume. The median price per unit stands at $291K, with a median cap rate of 4.48% and a median price per square foot of $607. Eight deals are currently pending, representing $18.60M in total pending volume.
The average days on market of 230 days remains the most telling data point in the current inventory picture. Extended marketing times of this magnitude reflect a persistent bid-ask gap, where seller pricing expectations have yet to fully align with where debt markets and buyer return requirements sit today. Properties that are trading are doing so on the buyer's terms.
This dynamic is further reinforced when comparing active listing metrics against February's closed transaction data. Deals that traded in February carried a median price per unit of $200K and a median cap rate of 5.42%, compared to current active inventory sitting at $291K per unit and a 4.48% cap rate. The $91K per unit spread and 94 basis point gap in cap rates tell a clear story, buyers are finding value below asking, and sellers willing to meet the market are pricing at a meaningful discount to listed inventory. For owners serious about transacting in today's environment, that gap is the market.
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 - How Deferred Maintenance Is Quietly Eroding Your Value
For many Hawaii multifamily owners, deferred maintenance is a silent value killer. What starts as a postponed roof repair or an aging electrical panel quickly compounds into a buyer objection, a lender condition, or a cap rate adjustment that directly reduces your net proceeds at closing.
- Buyers use it as leverage. Every line item on an inspection report becomes a price reduction request or a reason to walk. In today's market, buyers are already underwriting conservatively and deferred maintenance gives them the justification to sharpen their pencil further.
- The cap rate impact is real. A modest upward cap rate adjustment to account for near-term capital expenditure risk is amplified at the valuation level. On a property generating $150K in NOI, the difference between a 5.00% and a 5.50% cap rate is nearly $270K in value, before a single repair negotiation takes place.
- Present well or price it in. Properties that are clean, maintained, and supported by documented capital improvements attract more buyers, create competitive tension, and close at stronger pricing.
In Hawaii's current environment, where the bid-ask gap is already wide and days on market are extended, showing up to market in your best condition is not optional. It is your first negotiation.
For more tips on how to maximize your property's income and value, visit our blog at hawaiimultifamilyadvisor.com/blog.
Multifamily in the News
Honolulu City Acquires Corner of N. Pauhi St. for $4.52M
Legislators Weigh Affordable Units That Reward Investors
Naulu Apartments Provides Long-Awaited Home for Working Families
Networking Events
CCIM Breakfast with Blackstone
CCIM UH Baseball Networking
CCIM Golf Tournament
Mahalo for reading. If this update was useful, pass it along to a fellow investor or property owner who would benefit. | 
