Q2 - 2026 Market Data
Hawaii's multifamily market posted a standout Q2 2026, with 13 properties trading versus 11 in Q1 (+18.2%) and total sales volume surging to $199.40M from $29.27M (+581.6%). Median price per unit rose to $302,778 (+21.6%), while the median cap rate compressed 72 bps to 4.70%.
The quarter's headline transaction, James Campbell Company's acquisition of The Element, a 318-unit Kapolei property, for $165M at a 5.25% cap rate, accounts for the vast majority of this growth, representing over 80% of total volume. Excluding this outlier, Q2 volume would land closer to $34.4M, a more modest increase over Q1, and cap rate compression would be far less pronounced. The Element's scale makes it an important data point, but not fully representative of broader market pricing trends this quarter.
Here's a table to illustrate the market data through the first half of 2026
Download Sales Comps Below
Inventory Snapshot
As of this report, 56 multifamily properties (5+ units) are available across the state, encompassing 731 units and $222.8M in total opportunities. A total of 10 deals accounting for roughly 18% of available opportunities are currently under contract for a potential volume of $33.3M, or approximately 15% of dollar volume, pointing to continued demand in the market. The median price per unit stands at $307K, with a median cap rate of 4.13%.
With average days on market climbing to 238 days, the widening gap between seller and buyer expectations continues to dictate the pace of deal-making across 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: The Return on Equity Problem
Your multifamily building may be performing well, but is your equity?
Long-time multifamily owners often evaluate their investment based on what they originally paid. But as property values appreciate and loan balances decline, a significant amount of equity can accumulate within the property.
That's why it's important to periodically look at Return on Equity (ROE). ROE = Annual Cash Flow ÷ Current Equity
For example, an apartment building worth $4 million with a $1 million loan balance has approximately $3 million in equity.
If the property generates $120,000 in annual cash flow, that's a 4.0% return on the owner's current equity.
The property may still be a great investment. But the more important question becomes:
Is that $3 million of equity producing an acceptable return or could it be working harder elsewhere?
Understanding your ROE can help frame the decision to hold, refinance, reinvest, sell, or complete a 1031 exchange.
Owner Tip: Don't just measure your investment against what you originally paid. Periodically measure the return you're earning on the equity you have today.
How hard is your equity working?
Request a complimentary Equity Performance Review to understand your property's current equity position, cash flow, and estimated return on equity.
Want more strategies for protecting cash flow and maximizing value? Visit our blog at - hawaiimultifamilyadvisor.com/blog.
Just Listed!
We're excited to announce the sale of 1559 Magazine Street, Honolulu, HI. 96822, a 5-unit multifamily property consisting of a 5-unit apartment building and a 4bd/2ba House, listed at $2.68M – Click here to preview the property's website!
Multifamily in the News
DPP Average Delay on Affordable Housing Projects
View Our Active Listings
1223 Wilder Avenue
1559 Magazine Street
219 Kalihi Street
1684 Kalakaua Avenue
Networking Events
CCIM – General Membership Meeting - Hotels
CCIM Shaping CRE with DPP
CCIM Golf Tournament
Mahalo for spreading the wealth of information! Share this market update with your network! | 
