May - 2025 Market Data
May 2025’s multifamily sales activity reflects a market still defined by selectivity. Only 7 properties (5+ units) changed hands statewide, totaling $34.3 million in transaction volume. The median price per unit dipped slightly to $233,000, while the median cap rate compressed to 4.05%, a potential signal that investors are accepting lower returns for well-located or stabilized assets. Notably, three of the transactions involved properties with 20 units or more, and two long-term owners chose to exit, suggesting some sellers are seizing the opportunity to cash out after years of ownership. While buyer interest remains, the pace and nature of deal flow continue to reflect a measured approach amid ongoing economic uncertainty.
Download Sales Comps Below
Inventory Snapshot
Inventory tightened slightly heading into July, signaling a decrease in new listing activity. As of this month, 47 multifamily properties (5+ units) are on the market, representing a total consideration of $165.69 million, down from 51 in June and 57 in May. The average DOM now stands at 221 days, highlighting longer sales cycles as buyers continue to exercise caution. Of the properties on the market, the median price per unit is $278,000, and the median asking cap rate is 4.0%, which remains below the 4.05% median cap rate of recent closed deals. While narrowing, this gap underscores an ongoing disconnect between buyer expectations and seller pricing. Notably, 6 deals are currently pending, totaling $16.35 million, indicating that motivated sellers who are pricing realistically are still finding traction in today’s market.
If you'd like to receive our Hawaii Multifamily Inventory Sheet, which includes both active listings and select off-market opportunities, contact us directly to be added to our distribution list.
Owner’s Corner – Trump’s Big Beautiful Bill – Impact on Multifamily
How the BBB Impacts the Multifamily sector, whether you own market or affordable housing, here are the key takeaways:
100% Bonus Depreciation Returns
Full expensing is back, restoring 100% bonus depreciation for multifamily investments that had been set to phase out.
Rental Assistance & Housing Vouchers
Additional federal support helps stabilize rents and reduce vacancy risk.
LIHTC Expansion
The largest boost to Low-Income Housing Tax Credits in Decades:
-Cuts private bond financing requirements from 50% to 25%, doubling 4% credit deals.
-Permanently increases the annual 9% allocations by 12.5%
Opportunity Zones 2.0
OZs are extended & expanded. States can designate new high poverty and rural zones, with rural projects receiving a 30% tax basis bonus.
1031 Exchanges & Capital Gains Preserved
Positive news for those planning to sell or reposition assets. Like-kind exchanges remain untouched, and long-term capital gains tax rates stay capped at around 20%
Green Building Incentives
New & expanded tax credits for energy-efficient upgrades and sustainable construction
Bottom line, the BBB delivers major tax advantages and development incentives, whether you’re repositioning, developing, or holding multifamily assets.
Visit our Blog for more asset management tips & best practices.
Done Deal!
Excited to announce the successful closing of a 4-unit multifamily property at 708F Olokele Ave. Honolulu, HI. 96816. Read about how we successfully represented the owner here.
Multifamily in the News
Section 8 Housing Waitlists Open Across this City
City Razes Waikiki Building for Affordable Housing
Start of leasing at new non-profit affordable housing Aloha la Halewiliko
View Our Active Listings
1125 Hassinger Street
Networking Events
CCIM August Lunch & Learn
CCIM September Lunch & Learn
CCIM Golf Tournament
CCIM – General Membership Meeting – Permits to Progress
Hawaii Multifamily Investors Network – Facebook Group
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