Kailua: Beach Town with a Big Heart

Far away enough from town, yet still conveniently located, Kailua offers stunning scenery and laid-back vibes. Popular with tourists and long-time locals alike, this beachy community has a host of housing options for almost every buyer.

“There’s a huge variety of housing here,” says Locations Partner and Realtor® Corinda Wong, who has called Kailua home for decades. “From oceanfront estates to condos — and everything in between.”

Like Oahu housing prices overall, Kailua home prices have shot up by double digits over the past two years. The single-family home median price increased by 23% from 2020 to 2021, and so far in 2022, the median is 13% higher than a year ago.

While rising interest rates have tamped down Kailua’s hot market over the past few months, demand is still very strong.

“We’ve seen the number of sales declining this summer, but prices are still high because of the lack of inventory. In addition to a large number of local buyers looking to call Kailua home, we see many military buyers. I’ve also had many clients from the mainland who grew up in Kailua and want to return.”

With a year-to-date single-family home median price of $1.6 million, Kailua is one of Oahu’s more expensive housing markets; however, prices vary greatly among Kailua’s 26 neighborhoods.

“The luxury neighborhoods of Lanikai and Beachside are some of Oahu’s priciest, while home prices in Coconut Grove and Keolu Hills tend to be closer to the overall island-wide median,” says Wong.

At $775,000, the year-to-date median price for Kailua condos is also greater than the median price for Oahu condos overall.

Higher-end condos like Bluestone and Ka Malanai At Kailua are the most expensive, with sold prices ranging from $1 million to $1.5 million. Values can still be found in Kailua, if you (and your real estate agent!) know where to look. Older buildings in Kailua Town — some with recently renovated units — can offer great bargains for buyers.

Even as the real estate market moderates, Wong expects Kailua home prices will continue to rise. “Kailua is a mature market area — there’s not much land left to develop. Our housing supply will always be limited, which ensures that home values remain high.”

No matter which neighborhood or housing type you choose, daily life in Kailua is all about community. Even as the market continues to grow, three in every four residents are owner-occupants.

“We have many great facilities, from our award-winning beaches and parks to the mountains. Residents also have many choices when it comes to schools and extracurricular activities. Kailua is a fantastic place for foodies, too, with many restaurants, a farmer’s market and a Whole Foods Market.”

With so many reasons to settle in Kailua, it’s no surprise that more than half of single-family homes and condos sold for above the list price and were on the market for a median of less than two weeks in June. “There’s a lot happening in the market right now, so it’s best to work with an agent who has access to all of the local neighborhood data and can advise you on your next move,” Wong says.

For more information about Kailua, listen to this month’s episode of the Oahu Real Estate Report podcast from Locations and Hawaii News Now, available wherever you get your podcasts.