Q3 - 2025 Market Data
The Hawaii multifamily market tapered every so slightly in Q3-2025 following a strong momentum earlier in the year. A total of 15 properties (5+ units) traded during the quarter, generating $37.27 million in sales volume, a 44.3% decline from Q2. Despite lower transaction activity, pricing metrics remained resilient as the median price per unit increased 6.33% quarter over quarter from $235K/ unit to $250K / unit. Meanwhile, the median cap rate compressed by 31 basis points to 4.25%, indicating that investor demand remains steady and competition for quality assets persists. The combination of fewer trades, rising pricing, and tighter yields suggests that investors are focusing on stabilized properties in excellent locations while awaiting further clarity on interest rate trends and both local and broader economic conditions.
We've created an interactive Google Map with the Q3 sales data. Preview the map here - Q3 Hawaii Multifamily Sales Map
Here's a table to illustrate the market data through the last 6 months of 2025
Download Sales Comps Below
Inventory Snapshot
The current inventory of Hawaii multifamily properties remains increased, with a total of 71 properties (5+ units) actively on the market, a notable increase from 58 in Q2-2025. The average days on market has inched up to 215 days, reflecting continued caution among buyers and longer decision timelines. The median asking price per unit rose to $297,000, up from $275,000 in the prior quarter, while the median asking cap rate stands at 4.22%, closely aligning with the 4.25% median cap rate of recently closed transactions. This narrowing spread between asking and achieved yields suggests sellers are beginning to adjust pricing expectations in line with market realities. Currently, there are 9 properties under contract totaling $28.58 million in volume, indicating that appropriately priced assets continue to attract investor attention despite the slower overall pace of activity.
To receive our Hawaii Multifamily Inventory Sheet, which compiles all active listings as well as off-market opportunities into one convenient document, reach out to us directly to be added to the distribution list.
Owner’s Corner: Year End Best Practices for Multifamily Owners
As we wrap up 2025, now is the time to apply smart year end strategies that protect value and prepare your multifamily assets for a strong start to 2026.
1. Financial Review
- Budget Check: Compare 2025 actuals vs. budget, identify variances, and refine your 2026 budget for better cost control and resource allocation.
- Tax Planning: Consult your CPA on year-end opportunities such as cost segregation, bonus depreciation, and maximizing deductions.
2. Property Maintenance
- Year end Inspections: Address deferred maintenance, safety concerns, and repair priorities to start 2026 on stable footing.
- Preventive Maintenance: Strengthen your maintenance schedule to reduce surprises and extend asset life.
3. Lease & Tenant Management
- Lease Renewals: Review upcoming expirations and adjust rents based on market conditions to protect both occupancy and income.
- Tenant Experience: Gather feedback and make targeted improvements to support retention.
4. Efficiency & Risk Management
- Energy Audit: Identify efficiency upgrades to reduce operating costs in the new year.
- Insurance Review: Confirm coverage aligns with 2025 property changes and updated replacement costs.
Positioning your property now ensures smoother operations and stronger performance heading into 2026.
At Excel Commercial Realty, we specialize in helping owners maximize income and property value. Let’s discuss how we can help you achieve your goals, contact us today!
Visit our Blog for More Tips & Best Practices
We truly value your referrals. If you know someone that is considering buying or selling a multifamily property, please connect us, we’d be honored to assist.
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Multifamily in the News
City Selects Corporations to Lead Affordable Housing Development
$62M Project Expands Affordable Housing for Seniors
City Secures Financing for Kalihi Affordable Housing Project
James Campbell Co. Breaks Ground on $170M Project
Hawaii is Failing in Affordability and Homebuilding
View Our Active Listings
1125 Hassinger Street
1223 Wilder Avenue
219 Kalihi Street
Networking Events
CCIM Annual Cocktail Party
2026 CCIM / IREM Real Estate Forecast
Hawaii Multifamily Investors Network – Facebook Group
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With Thanksgiving right around the corner, we wanted to express our sincerest gratitude for your support throughout the year. Enjoy the special holiday with your loved ones!
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