Most Hawaiian Homes Are Stock Rich
This means that the majority of homes on the island are worth at least double what is owed on mortgages or other debts on the properties.
An area of east Honolulu that includes the gated enclave of multimillion-dollar homes atop Hawaiʻi Loa Ridge had the highest share of capital-rich properties in Hawaiʻi during the first quarter of this year, according to an analysis of the data provided by ATTOM Data Solutions.
Nearly three-quarters of homes in the 96821 postcode, which stretches from Waiʻalae Iki to Kuliʻouʻou, were considered equity-rich. This means that the combined loan balances secured by these homes, including first mortgages and home equity lines of credit, amounted to no more than 50% of the estimated market value of the homes.
Statewide, 56.3% of all single-family homes and condominiums on the islands were considered equity-rich in the first quarter of this year, an increase of 14.5 percentage points from a year ago. year, reflecting a benefit from rising house prices for existing owners, according to ATTOM.
Nationally, 44.9% of mortgaged properties were considered equity-rich in the first quarter, down from 31.9% in the first quarter of 2021, with the equity-rich areas centered around technology hubs in the San Francisco Bay Area and Austin, Texas.
“Record levels of home equity are providing financial security for millions of families and minimizing the risk of another housing market crash like the one we saw in 2008,” said Rick Sharga, executive vice president market intelligence for ATTOM. “But these higher home prices and rising interest rates are making it extremely difficult for first-time buyers to enter the market.”
In O’ahu, 53.6% of all mortgaged homes were considered equity-rich, up from 36.5% just a year ago.
Drilling down to the zip code level, 72% of homes in East Honolulu’s 96821 neighborhood were stock-rich, an increase of 18.8 percentage points. The median price of single-family homes there rose 26% last year to $1.65 million; by April 2022, the median price had reached $1.83 million.
To round out the top five action-rich ZIP Codes:
- 96734, Kailua: 68.4% of all houses were equity-heavy in the first quarter, down from 50.5% a year earlier. Median single-family home prices there rose 25% in 2021 and rose another 20% in April of this year.
- 96816, Waiʻalae-Kāhala-Kaimukī: 65.7% of all homes were considered equity-rich, an increase of 13.3 percentage points from a year ago. The median price for single-family homes rose 43% last year to $2.5 million, the highest on Oʻahu, but fell to $2.39 million in April.
- 96825, Hawaii Kai: 62.1% of homes were equity-rich, 15.2 percentage points higher than a year ago. The median price of single-family homes rose 17% last year to $1.47 million and rose another 10% in April to $1.61 million.
- 96782, Pearl City: 60.6% of all homes were considered stock-rich, up 13.8 percentage points from a year ago. The median price of single-family homes in the Pearl City-ʻAiea area increased 16% in 2021 to $950,000; it had surpassed the $1 million mark in April of this year.
The percentage of stock-rich homes on Oʻahu decreases as you move west, but much of West Oʻahu—the area the Honolulu Board of Realtors calls the ʻEwa Plain—has seen the number of stock-rich homes shares rise more than 50% over the one-year period. Wai’anae saw a 46% increase.
- 96706, Ewa beach: 41.9% of homes were considered equity-rich, an increase of 14.6 percentage points from the first quarter of 2021.
- 96707, Kapolei: 42.5% of homes were equity-rich, an increase of 14.2 percentage points from the first quarter of 2021.
- 96792, Wai’anae: 46.9% of all homes were equity-rich, an increase of 14.8 percentage points from the first quarter of 2021.
The median price for a single-family home in Ewa Plain in 2021 was $850,000, up 20% from $711,000 in 2020, according to the Board of Realtors. In April, the median price there jumped another 17% to $935,000.