May 2026 Market Data
In May 2026, there were only three multifamily properties (5+ units) that traded in Hawaii accounting for a total volume of $10.65M. The median cap rate of the assets that traded was 5.98% the median price per unit was $365K.
We are pleased to share that we represented the Buyer of 276 Olive Ave., one of the three properties that traded, a 7-unit multifamily property located in the heart of Wahiawa. An excellent value-add opportunity for our client; we can’t wait to see their vision come to fruition.
The lack of transaction volume during May, is a clear indicator of the challenges the market is facing. While there is Buyer demand in the market, it is tough for deals to not only pencil, but also meet Seller expectations. The recurring theme here is that deals that are well positioned against the market from a pricing standpoint and delivering desired returns for investors are continuing to trade.
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Inventory Snapshot
As of this report, 57 multifamily properties (5+ units) are available across the state, encompassing 756 units and $224.8M in total opportunities. There are a total of 12 deals or 21% of the opportunities are currently under contract for a potential volume of $39.7M or 17.6% of dollar volume, indicating a healthy demand in the market. The median price per unit is at $296K with a median cap rate of 4.40%.
At 232 average days on market, the ability for Seller’s to meet Buyer’s expectations remains the lynch pin 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: Why Rising Expenses Are Quietly Eroding Your NOI
In 2026, most owners aren't losing value because rents are falling, they're losing it because insurance, utilities, and maintenance costs are climbing quietly, compressing NOI (and value) in the background. Here are some great tips to avoid your NOI from eroding.
- Get ahead of insurance. Premiums and deductibles are up sharply; know your trend line before a buyer or lender flags it for you.
- Audit utilities annually. Small water, sewer, and energy savings flow straight to NOI, often more than an equivalent rent bump
- Don't defer maintenance to cut costs. It shows up later as capital costs and buyer objections at sale.
- Benchmark expenses against comparable assets so you catch a negative trend before it compounds.
Expense inflation isn't just an operating headache, it's a valuation issue. Buyers are underwriting expense trends more conservatively than ever, and every dollar of margin lost gets multiplied at exit.
Concerned about how rising expenses are affecting your property’s NOI? Reply to this email and we will conduct an Expense Optimization Review of your property.
Want more strategies for protecting cash flow and value? Visit our blog at - hawaiimultifamilyadvisor.com/blog.
Multifamily in the News
The City Plans to Add 2,500 Affordable Units in Iwilei
“Hawaii Builds” Initiative Aims to Fast-Track Affordable Housing
Case Introduces Transit-Oriented Development Bill
Networking Events
CCIM Hawaii – Sunset Sail
CCIM Hawaii 2026 Golf Tournament
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