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.
January 2025 got off to a modest start, with four (4) multifamily properties changing hands for a combined total of $9.05M. The median price per unit for the properties sold was $285K, while the median CAP rate came in at 3.93%.
The market closed out the year on a high note as there were 12 transactions (5+ units sales), which accounted for a total volume of $44.81M to round out the 4th Quarter of 2024.The most volume of any quarter throughout the year, up 16.58% from Q3 – 2024.The median price per unit increased by 6.90% from Q3 to $308K / unit.. The median CAP rate of the sales in Q4 saw a decrease of 62 basis points from Q3 to 3.94%, indicating the improvement to property values.
A total of 6 properties closed throughout the month of November for a total volume of $16.35M. Our team helped one of our clients acquire 1223 Wilder Ave., an off-market deal consisting of 6-units for $1.48M. The property has been vacant and, in the news, due to squatters on the property, and negative activity in the neighborhood. Our client is working on rehabbing the property and will have it leased in the coming months. A huge positive for the neighboring properties and the community at large. The median price per unit of the 6 properties that traded in November was $301,146 and the median CAP rate was 4.17%.
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