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.
In August 2025, two multifamily properties traded in Hawaii, a 10-unit property on Kapiolani Blvd. and a 6-Unit property off Kapiolani Blvd. totaling $4.5 million in sales volume. These properties were on the market for an average of 224 days. The median price per unit was $275K, while the median cap rate was 4.38%.
July 2025’s Hawaii multifamily sales activity was slim, reflecting just 2 properties (5+ units) trading. A total volume of $5.4M. The median price per unit of these deals was $256K and the median cap rate was 3.70%. From January through July there were 30 properties that traded for a sales volume totaling $93.1M or 82.1% of 2024’s total volume.
The Hawaii multifamily market showed a sharp rebound in activity during Q2-2025. However, pricing trends reflected a downward pressure on valuations. A total of 21 properties (5+ units) traded, generating $66.85 million in sales volume, a 220.7% increase over Q1. Despite the surge in transactions, valuations softened as the median price per unit fell 21.63% from $300K to $235K. At the same time, the median cap rate rose by 39 basis points to 4.56%, signaling that investors are demanding higher returns. This combination of lower pricing and rising yields created more attractive entry points, fueling the uptick in investor activity even as broader market uncertainty lingers.
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.
April 2025’s sales data reveals that market momentum remains unpredictable. In April, just 8 multifamily properties (5+ units) sold across Hawaii, totaling $21.31M in sales volume. The median price per unit settled at $241K, and the median cap rate rose to 4.92%—further evidence that buyers are demanding higher returns as uncertainty lingers. This follows a sluggish first quarter, where volume pulled back after a strong year-end finish in 2024. While there’s still investor interest, pricing and deal flow suggest that caution continues to shape market behavior.
Our forecast headed into 2025 was very optimistic, however, the data following the first quarter of the year suggests that there is still a lot of uncertainty in the market as we saw volume decline sharply following a strong finish to 2024. In Q1-2025 there were a total of 7 properties (5+ units) that traded for a total sales volume of $20.84M a 53.49% decrease in volume from Q4-2024. The median price per unit was down 2.63% to $300,000 / Unit and the median CAP rate of these transactions was up 23 basis points to 4.17% expressing a softening in property valuations.
Only one property traded in the month of February. 2014 Fern Street Honolulu, HI. 96826, a 9-unit property that was acquired in November 2023 for $2.3M and underwent a value-add program and listed back on the market in September 2024 for $3.15M. The property traded at the end of February 2025 for $2.7M or $300K/ unit and a 6.25% CAP rate.
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